- The FSCA has published its financial sector transformation strategy for comments until 29 April 2022, which is said to favour inclusivity
- The strategy is hoping to make it easier for new players to enter the game and get a fair and equal opportunity
- Making lending more available to those who are just starting out, especially women, will have a positive impact on entrepreneurship in Mzansi
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Mzansi is buzzing with innovators and moneymakers, predominantly female entrepreneurs. Women are taking over, and it looks like it might be a little easier for them to do so if these new regulations are passed.
The Financial Sector Conduct Authority (FSCA) published its financial sector transformation strategy for comment. It favours financial inclusivity, which will help liberate businesswomen in South Africa.
News 24 reported that even though a whopping 80% of the Mzansi adult population has a transactional bank account, financial inclusion in many other financial products is nowhere near where it needs to be.
FSCA has put forward the reviewing of licensing requirements
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The FSCA will be looking at the licensing regime to help ease the entry of small financial services providers, says News 24.
"It is therefore essential that licensing processes are not only efficient and robust but promote diversification of financial institutions. We will ensure that licensing requirements do not pose unnecessary barriers to entry," it wrote in the financial inclusion strategy document.
They want to create a framework that allows entrants rather than defer them. Making the process easier will mean more entries, which is the end goal.
Individual assessment will make the process fairer and give equal and fair chances to all applicants, or so that is the hope.
SME lending is another huge target on the agenda as the process can be tedious
The FSCA plans to collect and analyse recent data on the movement of financial assistance and lending in small, medium and micro-enterprises.
FinScope South Africa Small Business Survey in 2010 was the last set of data collected. It showed that only 8% of small business owners had formal credit that would allow them to seek funding and borrow money to grow their businesses.
From this, the FSCA is hoping to create products that would allow these SMEs to lend without having to go through rigorous checks that they would end up not meeting.
With many women in South Africa never having owned a bank account or worked a formal job as the “man of the house”, generally taking care of all these tasks, when starting a business to fend for their families, they are unable to lend money.
The FSCA said the Conduct of Financial Institutions (COFI) Bill, which deals with many issues proposed in its strategy, is expected to be tabled in Parliament this year.
“My sister is a businesswoman”: Proud lady celebrates sister online after starting her own hustle
It takes a lot of courage and hard work to start your own hustle, and it is definitely something worth shouting from the rooftops.
Social media user and proud sister @LollyMkunqwana took to Twitter with a heart bursting with pride as her sis embarked on an exciting journey.
Source: Briefly News