South Africa Diagnostic Review of Consumer Protection in Non-Credit Financial Services : Key Findings and Recommendations
The consumer financial services sector in South Africa is among the most sophisticated in the world, yet nearly 40 percent of the population, especially blacks, use no formal financial services. The now ubiquitous mobile phones are dramatically cha...
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| Format: | Report |
| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/230611493294949699/Key-findings-and-recommendations http://hdl.handle.net/10986/26558 |
| Summary: | The consumer financial services sector
in South Africa is among the most sophisticated in the
world, yet nearly 40 percent of the population, especially
blacks, use no formal financial services. The now ubiquitous
mobile phones are dramatically changing the landscape of
digital financial services but weak financial literacy and
general literacy of the underserved population remain the
Achilles Heel. At the same time, weak competition in the
South African financial services sector is an issue – just 4
banks control over 80 percent of retail banking and over 90
percent of personal transactions, maintaining rates and fees
above competitive levels. The 2010 FinScope survey found
that consumer trust was higher in informal financial
institutions than in the formal ones such as banks. The
South African Government has embarked on a substantive
program of improving the financial sector legislation and
establishing a full market conduct regulator. Presented in
two volumes, this World Bank’s review compares the South
African framework for financial consumer protection (FCP) to
international practice and provides recommendations to
strengthen it. Volume I summarizes South Africa’s FCP
policies, describes the recent surveys, and sets out the key
findings and recommendations of the Review. Volume II
provides an assessment of banking, securities, insurance,
and private pensions segments and discusses the key issues
in retail payments and remittances and financial education. |
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