How is BlockChain Affecting Personal Loans in South Africa

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How is BlockChain Affecting Personal Loans in South Africa
How is BlockChain Affecting Personal Loans in South Africa. Image source: Pixabay

While the financial infrastructure across South Africa has steadily improved over the years, gaps in communication from lack of a necessarily centralized technical base render inhabitants of the country virtually powerless when it comes to borrowing or receiving much needed capital from friends, family, and lending institutions. South Africa loans are part of a pool of resources unattainable to many, however, the blockchain promises to usher in a new era where trust and speed replace old fashioned systems of currency movement from party to party.

African Demand For Crypto is Growing

Speaking at the 2018 UNLOCKINGBLOCKCHAINAFRICA event, speaker and entrepreneur Mpho Dagada understands the future role that blockchain will play in everything and relented that Africa is ripe for understanding the ramifications of the new paradigm of exchange. For Sahara, the blockchain represents the next level of transactions.

According to his research, both The Bank of Canada and billionaire thought leader Bill Gates have expressed similar sentiment towards the future of the technology. Dagada went on to say that blockchain can curve common obstacles to the traditional reserve system like corruption and manipulation.

The Future of Lending in South Africa

South Africa loans aren’t much different from loans from other regions in the continent or abroad. Many companies and banking institutions that offer personal loans charge high fees, and implement highly selective criteria when accepting applications. Alongside this fact, the region’s financial markets are controlled by a handful of banking institutions. This is beginning to change as young, tech savvy South Africans force more traditional banks to implement new strategies, which is exactly what is happening in Johannesburg.

Reuters recently reported that in order to keep up with online-only rivals, traditional banks decided to offer low-fee, digital account in an effort to shake up an industry characterized by draconian laws and slow progress. African Bank and Standard Bank are pioneering efforts to target a new generation of Bankers who are distrustful of traditional systems who seek to be apart of more close-knit ecosystems in which they have control. The move by two of South Africa’s largest banks is a disruption play meant to assert competitive advantage over other institutions such as Nedbank, Absa, FirstRand, Discovery, and BankZero.

Why Customers Are Choosing Money Matcher

A new company called Money Matcher is simplifying the process of applying for a personal loan. Unlike traditional financial outfits, approval decisions happen within minutes and qualifying means adherence to basic criteria – another aspect that sets the company apart from the competition. The lender matches borrowers with lenders through a seamless match making process based on capital needs. Money Matcher specializes in:

Small Personal Loans:

  • R300 to R2,000
  • 16 Weeks to 50 Weeks
  • 20% Establishment Fee

Medium Secured Personal Loans:

  • R2,100 to R4,600
  • 13 Months to 24 Months
  • APR is below regional industry standard

The proliferation of the digital account combined with the coming age of blockchain promise to usher in a new era of financial freedom for South Africa and surrounding countries.

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