The banking app that turns clients into company investors

BY Wesley Diphoko 3 MINUTE READ

Banking apps are replacing banking buildings with ease of access to banking services.

Banking has become something that you do instead of requiring one to visit a place. Some are even going beyond traditional services to include financial services that are empowering clients. The Capitec banking app is amongst some that are enabling powerful financial services such as enabling clients to buy shares directly from the app.

Capitec, South Africa’s largest digital bank, has added the EasyEquities investing platform to its new banking app, allowing its clients to invest in shares on stock markets in South Africa and the USA.

Getting equities used to be a privilege reserved for the elites. The partnership between Capitec and EasyEquities is enabling ordinary people to now buy shares in listed companies.

“The partnership brings our clients greater accessibility to a variety of investment options, in an affordable and simplified way. We currently have over 4 million app clients, who will now not only be able to invest in top South African companies but also those based in the USA, a unique feature not offered by traditional brokers,” says Francois Viviers, Executive of Marketing and Communications at Capitec.

EasyEquities is an online platform that allows anyone to buy shares with as little as R5, $10, or whatever amount they have available to invest (and with no monthly brokerage fees).

Charles Savage, CEO of EasyEquities explained this unique ability, “EasyEquities is a qualified intermediary with the IRS, which simplifies opening a US investment account and lowers the cost of trading US shares. Our EasyFX feature allows Rands to be converted to Dollars within the platform and then used for the purchase of US shares.”

Clients also enjoy a 20% discount on brokerage fees when using the new widget and pay zero data costs when accessing the widget, as Capitec’s app is zero-rated for data.

“EasyEquities have made investing accessible to all, through affordable fees, removing the need for minimum investment balances and using digital technology to create a simplified client experience. Their approach is based upon the same principles we have used to challenge the norms of traditional banking, making our partnership with them a perfect fit,” Viviers says.

Savage, expressed excitement at the opportunities the partnership would create for South Africans, “This partnership is the realisation of a dream for all of us at EasyEquities. To be able to work alongside the Capitec team has been a privilege and we are incredibly excited about what the two teams can do together in making investing simpler for all South Africans.”

South Africa’s Gross Savings Rate* is low, measured at just 15.4 % in March 2020 according to CEIC, and it’s a national imperative to encourage South Africans to invest and save as much of their income as possible.

“By giving South Africans easy access to investing we can help shift investment behaviour in the right direction. EasyEquities is perfect for first-time investors as it offers a demo account, which can be used to familiarise yourself with the markets you are interested in, before investing actual money.” Viviers added.

Capitec clients are able to access EasyEquities from the latest version of their banking app by clicking the “explore” tab and then navigating to “widgets”. “Existing EasyEquities clients can easily sign-in and link their accounts. New clients can follow the registration process and then start investing,” Viviers said.

What Capitec and Easy Equities are enabling their clients to do is changing the face of the banking and financial services sector for the better. Accessibility to financial services has never been this easy. Now more than ever before South Africans can get a slice of listed companies with a touch of a button on their mobile phones.


Tech Skills Need A War Room

BY Wesley Diphoko 3 MINUTE READ

Efforts to develop the necessary technology skills are not yielding the desired results

If the Google-IFC e-Commerce Africa report is anything to go by, then South Africa and the African continent is in trouble.

According to the report, the entire continent has 700 000 developers. South Africa has only 120 000 developers. Those numbers may sound big however they are nothing in comparison with countries in similar economic conditions. Latin America had 2,162,461 developers in 2019, with Brazil (573,400), Mexico (315,300), and Argentina (304,600) leading the region in total numbers. If this is not enough to illustrate the point consider the following fact: the state of California in the US alone has almost 700 000 (628,414) software developers.

There’s no shortage of programmes designed to develop technology skills and yet SA and the continent still lags behind in terms of adequate tech skills. There’s something very wrong with the skills development initiatives that are currently in place.

South Africa established what was then known as ISETT-SETA to oversee skills development initiatives in the tech space. This entity was later changed and integrated with the media skills entity and got called, MICT. The Media, Information, and Communication Technologies Sector Education and Training Authority (MICT SETA) is a skills development institution established in terms of the Skills Development Act of 1998, to generate, facilitate and accelerate the processes of quality skills development at all levels in the MICT sector in South Africa. The MICT sector is made up of five subsectors that are interconnected but also quite distinct and identifiable in their own right. These are advertising, film and electronic media, electronics, information technology, and telecommunications. Part of the problem and failure of this entity lies in the fact that technology skills development has now been lumped with advertising and film production. Having said that, the MICT has tried to develop tech skills through its programmes however those skills are not the right quality.

Another intervention in the skills development space has been mainly from the private sector. There’s no shortage of colleges that are offering technology skills programmes. The reality however is that even private colleges have produced very little in terms of quality technology skills. The tendency of most private colleges has focused on offering skills on how to “use” tools instead of focusing on the creation of technology.

The combination of what the public and private sector have done so far is not adequately addressing the real tech skills challenge.

If South Africa and the continent is to benefit from the almost $200 billion potential of the internet economy something very ambitious needs to be established to address the tech skills challenge.

South Africa needs high schools, colleges, and universities that are dedicated to teach highly in-demand technology skills. Such institutions will need to work and be partially funded by the technology industry to align skills with industry needs.

These institutions will have to incorporate work readiness skills to avoid the current situation of producing graduates who are not ready to hit the ground running.

Lastly, students in the tech space need skin in the game in the form of starting their own tech companies and this needs to form part of the curriculum of tech dedicated institutions.

Of course, not everyone will start a tech company however those that have the appetite need all the support they need to start their own companies. This partly means that the funding of tech startups needs to start from training and education institutions that are focused on tech. Instead of sinking students in education debt, they need business funding to support their technology research to turn into tech enterprises.

The Google-IFC e-Conomy report should serve as a warning bell to the tech industry and more importantly inspire action and creation of a tech skills war room.

Wesley Diphoko is the Editor-In-Chief of Fast Company (SA) magazine. Follow him on Twitter via: @WesleyDiphoko