SA’s new digital banking app, Bettr, has gained a growing community of over 6 500 users, as it enters its final stages of alpha testing.
Founded four years ago by entrepreneurs Tobie van Zyl (CEO) and Andrzej Stempowski (CTO) under the mother company, Bettr Finance, the virtual banking platform seeks to create an open digital banking network that makes financial solutions accessible, transparent and inclusive by offering local customers an alternative digital-first banking service for everyday transactional use.
While it is not a fully licensed bank, the smartphone-powered virtual banking service offers customers a no-fee transactional account, an interest-based savings account, and an online marketplace which offers financial products and services such as loans or insurance via its zero-rated mobile app.
Bettr uses artificial intelligence to provide each user with a financial graph that compiles their financial DNA (financial decision-making patterns), to customise their user experience and product preferences.
The financial graph, according to the fintech firm, helps to lower the barriers to accessing banking services by reducing distribution costs, origination costs and underwriting risks for financial products accessed on its marketplace.
Bettr is preparing to go live with beta testing in December, before officially launching publicly in 2021.
“What Bettr offers is an arm’s length relationship with customers that offers on-demand financial products or services, and executes the best option seamlessly, regardless of who the underwriter is. Think of using Amazon or iTunes to purchase a home, or car. Two days later your keys get delivered,” says Van Zyl.
“Our goal is to connect Africans (through the South African gateway) to the financial graph to afford them the opportunity to get onto the financial ladder. If one just looks at South African stats, 70% of our population have bank accounts, but among that 50% are underserved. South African youth, in particular, need a financial offering that greatly lowers or zeros costs, is built around their needs and one that gives access to either a transitional bank where they can pay, buy or save, as well as access product value in travel or car purchases via lowered rates.”
Financial products and services offered on the marketplace are from third-party firms, including financial wellness initiative Collab and online lending platform RainFin, among others.
All transactions in-ecosystem are free, interest is paid on positive balances, and nominal fees apply when making EFTs to incumbent banks and withdrawing cash from ATMs, notes Van Zyl.
The problem with SA’s “broken banking system”, he adds, is that financial services are priced for those who are either already making money, or were born into it – but not for those starting out with little financial literacy.
Millions of SA’s young people are unemployed, 50% of credit-active consumers are over-indebted, and five million are credit-invisible, according to the fintech firm.
With its zero monthly account fees, Bettr says it rewards good financial behaviour through its lifestyle partner rewards, and offers loans and micro-investments to help users reach personal goals faster.
“What distinguishers Bettr from other banks is that we offer a peer-to-peer marketplace, zero-interest-zero-fee credit advances, no physical bank card so no physical distribution, and end-to-end know your client is available in app for sign-up with no physical person or physical retail,” Van Zyl points out.
“Our key revenue drivers are nett interest income, interchange on card transactions and product purchases via the marketplace.”
According to Bettr, more features will be announced during the product reveal event scheduled for November.
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