SA fintech start-ups win fintech challenge

Ten fintech start-ups emerged victorious in the recently held Fintech Challenge – with each banking a $5 000 (R94 000) cash prize to fund their entrepreneurial pursuits.

Fifteen start-ups presented out-of-the-box fintech solutions, following eight weeks of investment-training from industry leaders, and 10 triumphed.

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Winning formula

Hailing the prize as a “big win” Sum1 Investments founder, Kurhula Baloyi was thrilled to be one of the winners.

“To be recognised means the world to us,” Baloyi said.

The fintech founder says competition was “extremely tough”, as every participant presented innovative fintech solutions.

Baloyi’s Sum1 Investments enables low-middle-income consumers to invest in easy-to-understand assets within their local communities, to create above-market returns.

Why the strong interest in rural and township economies? As “someone who grew up in those communities”, Baloyi says there’s great potential to explore.

“Opportunities for investment are endless!” she said.

“We shouldn’t wait for a ‘U-Save’ to realise our potential.”

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Fintr is also one of the triumphant 10 start-ups. It is a gamified platform that aims to teach children and teens about financial literacy through interactive games, allowing them to “learn, play and earn”.

Co-Founder Danei Rall says she’s grateful for investment-training received from the fintech challenge, which will go a long way in business development, and for the generous prize money to elevate Fintr to “new heights”.

Rall says she can now worry less about finances and focus on growing the business, alongside partner Elijah Djan.

Why financial literacy for kids? Rall says children have a basic understanding of money principles from as early as three years old.

She says it’s important to give children the heads-up early, so they can avoid making financial mistakes as adults.

Unleashing a fierce fintech ecosystem

The fintech challenge is an initiative by Innovation Bridge Portal Community – formed through a collective partnership between the Department of Science and Innovation, and the Council for Scientific and Industrial Research (CSIR).

The initiative, which is aimed at providing low-cost and appropriate savings and de-risking products for the low and middle-income market, and lending solutions for SMEs – seeks to bridge the gap in financial access for underserved communities.

“The region’s most innovative and impactful fintech companies unveiled their solutions to enable greater financial access to the poor, after an eight-week investment readiness program”, says Marie Francoise Marie-Nellie, World Bank Country Director, Southern Africa.

Funded by the World Bank and Swiss State Secretariat for Economic Affairs, the objective of the fintech challenge is to provide entrepreneurs with access to markets, business networks and investment opportunities.

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Marie-Nellie says the programme included masterclasses and mentoring, and as a result, the winning start-ups are investment-ready and eager to engage further with interested investors.

Marino Cuenat, Deputy Head of Mission for the Embassy of Switzerland, says there are many untapped opportunities to be explored.

“South Africa’s financial services sector is well regarded and we are thrilled to be actively promoting fintech in partnership with the World Bank,” Cuenat says.

Collaboration

Collaboration is central to Innovation Bridge Portal’s primary objective to establish a digital platform for innovation, co-creation, knowledge-sharing, and match-making amongst ecosystem actors in Southern Africa.

“Collaboration is the new competition”, Rall says.

Echoing the same sentiments, fellow prize winner Sum1 Investments’ Kurhula Baloyi says it’s important to “build those relationships”.

“There’s plenty of room for collaboration,” Baloyi concludes.