South Africa’s fintech sector is ripe with opportunities, says Riaan van Dyk, CEO of Sanlam Fintech.
This, driven by a combination of technological advancements, growing appetite for digital financial solutions, and increasing consumer demand for personalised financial guidance, the CEO told ITWeb on the one-year anniversary of the fintech business cluster.
Established in September 2023, Sanlam Fintech is part of the financial services group’s move to expand its existing fintech offerings, as well as ensure all aspects of its services are digitally-driven.
Its objective is to use tech to accelerate access to financial services for all Africans, delivering on the brand’s purpose.
Outlining the biggest opportunities witnessed in SA’s fintech sector, Van Dyk tells ITWeb that key among these is financial inclusion.
“There’s significant potential to expand financial services to underserved populations by leveraging mobile-first platforms and artificial intelligence (AI)-driven tools that simplify access to credit, savings, and insurance products,” he comments.
On personalised financial guidance, Van Dyk notes that consumers are increasingly seeking financial advice tailored to their unique needs.
Further, integration of behavioural insights – tools that combine behavioural science with fintech such as the money personality assessment – allow for deeper client engagement and a more empathetic approach to financial advising, he states.
“We believe that AI has the ability to improve the quality of our products, services, and customer experiences while simultaneously reducing the cost of delivering these to our customers. With lower costs and better experiences, we can deliver valuable solutions to more consumers, including those who may have struggled with access in the past.”
AI on the rise
Globally, most technology companies are making significant investments in AI, which is seen as a foundational technology for future innovation.
New research from IDC predicts that business spending to adopt AI, use AI in existing business operations and deliver better products/services to business and consumer customers will have a cumulative global economic impact of $19.9 trillion through 2030 and drive 3.5% of global gross domestic product in 2030.
On a local front, the GSM Association has noted that South Africa, which has robust compute capabilities, data centres, and a vibrant research and development ecosystem, stands out as a regional leader in AI.
Sanlam Studios, which forms part of Sanlam Fintech, launched its “AI Coach” – a generative AI tool to enhance financial inclusion and literacy by offering real-time, hyper-personalised financial guidance and support.
According to Van Dyk, Sanlam Fintech has strategically leveraged AI through the AI coach tool. “Initially built as a credit specialist, the AI Coach was designed to answer any and all questions related to credit for South African consumers.
“It helps users fetch and interpret their credit reports, perform credit calculations, and even guide communication with credit providers. It assists users in identifying their credit needs and guides them toward the right solution - whether applying for new loans, entering debt review, or taking steps to improve poor credit.”
Building on the AI coach tool, Sanlam FinTech introduced a second specialty: money personality assessment.
“This feature enables the AI Coach to interview users, identify their unique financial personalities (developed in collaboration with Sanlam’s psychologists), and deliver a personalised report. These reports provide actionable insights and practical tips, empowering users to take meaningful steps toward better financial well-being.”
For Van Dyk, while many of the potential disruptions AI could bring to the insurance sector are still theoretical, they represent exciting areas of exploration and opportunity.
Some of these areas of interest include enhanced underwriting and claims automation.
“AI has the potential to analyse vast amounts of data to provide more accurate risk assessments, potentially leading to more precise premiums and quicker underwriting decisions.
“AI could streamline claims processes by automating documentation checks, fraud detection, and pay-out calculations. This could reduce processing times and enhance overall efficiency.”
Looking ahead, the CEO says they are looking to expand the AI coach’s capabilities to support short-term insurance, medical insurance, investments, and general financial guidance, alongside developing a financial education element.
“Our goal is to continue driving innovation while ensuring that South Africans have access to tools that simplify financial decision-making and improve financial well-being.”
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