SA Reserve Bank Opens The Gates For Fintechs

The Banking Brief

Fintechs rejoice! SARB equalising the playing field for fintechs was not on my bingo cards for this year, but here we are.

Okay, let’s get into today’s news.

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Golden Nuggets

• South Africa’s Reserve Bank (SARB) is set to open up its national payment system to fintechs but with tough safeguards such as risk-based regulation, client fund segregation, and anti-money laundering (AML) compliance requirements.

• Nubank, Latin America’s leading digital bank, reported stellar Q2 2025 results: revenues up 40% year-on-year (YoY) to $3.7 billion, net income up 42%, and a customer base nearing 123 million users across the region.

• Investec, one of South Africa’s major bank and wealth managers, launched a R2.5 billion share buyback programme amid strong profits, signalling confidence in its capital position.

• SARB has applied to liquidate Ditsobotla Primary Savings and Credit Cooperative Bank after resolution efforts failed; depositors to be reimbursed up to R100,000 under the deposit insurance scheme.

Main Stories

1. South Africa’s National Payment System Opens to Fintech With Guardrails

Why it matters: SARB’s new rules bring fintechs (finance startups like digital wallets and payment apps) direct access to the national payment infrastructure, a role historically limited to banks. These safeguards ensure the system remains secure and trustworthy.

Details: Fintechs now must apply for activity-specific licenses under SARB’s activity-based authorization framework. They will also meet strict capital requirements to ensure financial stability, keep customer funds separate to prevent misuse, and comply with AML law (Anti Money Laundering) to prevent financial crime. A new National Payment Utility (NPU) will enable banks and fintechs to operate interoperably in real time. This is huge!

Be smart: Fintechs should prepare early for compliance, while banks should anticipate new competition and partnership opportunities.

SARB Fintech Safeguards In Simple Terms