FinScope Consumer South Africa 2012

Increased financial inclusion has been recognised as crucial to encouraging home ownership, household savings plans and the expansion of small business as avenues for pro-poor growth in South Africa. Thus, increased financial inclusion is recognised as a vehicle for sustainable and inclusive growth development by the South African Government. Government has undertaken a number of initiatives to accelerate financial inclusion over the years, which has included promoting entry into the banking sector, creating an enabling framework for cooperative banks, facilitating the entry of smaller dedicated banks, improving the governance arrangements of Postbank, introducing deposit insurance for cooperative banks, amongst others.

The challenge for the financial sector is how to address the concerns of the unbanked and under-banked customers and provide them with solutions within the context of the structure of each financial institution and the regulatory environment.