The FinHub | Volume 8

Building on the Legacy of Academic Excellence

Having been part of the design of the MPhil in FinTech degree in 2017 and tutoring on the degree in 2018, taking over as the director of the Hub in 2025 is a full-circle moment for me.

We've had over 60 students come through our degree, helping close the FinTech skills gap in South Africa and abroad. Our alumni have gone on to do big things. Some find themselves revolutionising and disrupting the world of financial services at leading financial institutions in South Africa, leading the venture team at BCG X, working as associates at the Bank of International Settlements (BIS), or furthering their studies at some of the leading academic institutions in the world, such as Imperial College London, to name but a few. In addition, our degree has had a significant transformative impact: 51% of our students are women, and 57% are Black Africans. 18% of our alumni have gone on to found start-ups, which to date have raised R18 million in funding.

A new beginning is an opportunity to take stock of our progress. Looking back at everything we’ve accomplished, I am so proud to have been part of this journey.

The efforts of our non-academic director, Anda Ngcaba have been instrumental in this, having pioneered our GenesisBloc Launchpad programme, which provides support to our student start-ups. That being said, there is still so much more we can do. Going into the future, my vision for the Hub is to:

• Continue to improve our degree, ensuring we keep providing world-class education on par with other leading FinTech programmes abroad.
• Admit more students into the programme with full financial support through bursaries that cover tuition and cost of living.
• Work with our non-academic director to provide more support for student start-ups and grow the number of start-ups that come through the Hub.
• Increase the research footprint of the Hub by growing the number of PhD students, postdoctoral researchers, and research fellows we have.
• Build relationships with other universities and educational institutions in Africa to expand the FinTech programmes and close the FinTech and 4IR skills gap.

In closing, I'd like to offer two words of thanks. First, I want to thank our donors. The Hub is entirely self-funded, and none of this would have been possible without the generous support of our partners and donors, past and current. I'd like to especially acknowledge the Interledger Foundation , who, from 2024, have become the Hub’s main sponsor for their ongoing support. Then, I’d also like to thank the MPhil degree and Hub founder and outgoing Director, Co-Pierre Georg , for everything he has done to get the Hub to where it is today. Co’s support and mentorship over the last two years have been invaluable as we started a process of handover, which saw me take over as convenor of the degree in 2022 and now culminates in me taking over as Director of the Hub. This handover period has made replacing Co less daunting, but his shoes (or, more accurately, sneakers) remain large to fill. While I can never fully replace him, I can promise to honour and prioritise academic integrity and rigour above all else, in the same way he did, as I take the Hub forward in my own unique way.

Digitising Traditional Savings for Financial Inclusion

DigiStokvel

Stokvels, a type of credit union in which a group of people agree to contribute a fixed amount of money to a shared pool weekly, fortnightly or monthly, contribute over R3.2 billion annually to local economies but remain largely cash-based, limiting their scalability and exposing participants to risks like theft and fraud.

The MPhil in FinTech class of 2024 was tasked with the challenge of digitising this process without losing that human element. By transforming stokvels, they saw an opportunity to amplify their impact in a way that complements their cultural foundation. The MPhil in FinTech class of 2024, in collaboration with the Interledger Protocol, developed DigiStokvel, a digital solution designed to make stokvels more secure, transparent, and accessible.

The project leverages ILP integration to facilitate secure, flexible financial transactions while preserving the communal nature of stokvels. WhatsApp is the platform's primary interface, chosen for its widespread use across communities. This choice reduces adoption barriers, offering a familiar tool that allows users to engage without learning a new system. Drawing from personal experiences with family stokvels, the team developed DigiStokvel to enhance traditional savings while prioritising safety and ease of use. Traditional banking models don't always accommodate the unique needs of stokvels. Still, by utilising ILP, they have created a system capable of handling varied contribution and distribution patterns while ensuring security.

Over eight weeks, they advanced from concept to implementation, achieving several milestones:

• Establishing a secure, scalable system architecture.
• Integrating WhatsApp for accessible user interaction.
• Creating user-friendly flows that respect stokvel traditions.
• Developing a secure payment framework.
• Ensuring regulatory compliance.

The pilot programme received positive feedback, with test users affirming the value of DigiStokvel as a tool that combines the convenience of formal banking with the trusted, personal aspects of stokvels.

DigiStokvel is more than an academic project; it represents our commitment to a more inclusive, efficient financial future for South Africa. By bridging traditional savings practices with modern technology, we're contributing to a digital transformation that respects and builds upon the cultural foundations of stokvels. This project is part of our ongoing dedication to developing solutions that address the unique financial needs of African markets while honouring their social and cultural heritage.

Interledger Summit

Bridging Worlds

On October 23rd, the Hub celebrated its partnership with the Interledger Foundation (ILF) at a networking reception at the School of Economics. ILF, a global nonprofit stewarding the Interledger Protocol (ILP) and Open Standards, advocates for open, interoperable payment solutions and supports organisations building on Interledger. This event kicked off Interledger Week, culminating in the Interledger Summit from October 26th to 27th at the Century City Conference Centre.

Students enjoyed the networking reception and summit as they were opportunities to bridge their academic learning with real-world fintech innovation. They had the opportunity to showcase their class projects to industry professionals, where they practised navigating the challenge of delivering engaging pitches. These interactions fostered valuable feedback, sparking fresh ideas and perspectives.

“This hub will serve as a centre for research and development while bringing together students, researchers entrepreneurs and innovators who are passionate about leveraging technology to solve real-world challenges.” Briana Murphy, ILF CEO

The Interledger Summit was an exploration of financial technology's potential to drive inclusion. Keynotes from ILF CEO Briana Marbury and Chairperson Stefan Thomas launched the summit, delving into the organisation's vision and technological advancements. Students were captivated by sessions on cross-border payments, gender neutrality in financial systems, and digital public infrastructure. Less formal networking and open-forum discussions allowed attendees to connect on a deep level and share global perspectives.

For many, the highlight was the pre-event hackathon held on October 19th to 20th: a competition where students, put into teams, worked on projects such as unemployment insurance chatbots and new ways to authorise payments. The competition showcased creativity and real-life applications that only further secured practical experience with Interledger's technology.

The week’s events underlined the fantastic potential of the Hub and ILF partnership, which includes activities such as Open Payments courses, bursaries for MPhil students in Financial Technology, and annual hackathons that equip them to build this future.

Zambia Tech-Xpo

Empowering Innovation, Shaping the Future

The Mandla Money team recently showcased their flagship Mandla WhatsApp Wallet at the Zambia Tech-Xpo 2024, held in Lusaka, Zambia, at the beginning of November. The Zambia Tech Expo is the country's leading technology expo, and this year's event was dubbed "Empowering Innovation, Shaping the Future".

The team participated in the expo on a fact-finding mission. Their wallet is designed to provide 24/7 retail financial services in emerging economies. According to the team, Zambia is a potentially interesting testbed. It has a population of 20 million, 60% of payments via the national financial switch are mobile money payments, and the dominant players are Airtel Money and MTN MoMo.

As such, aligning with the theme of shaping the future, the team believes there is an opportunity to enter the market - including other adjacent emerging economy markets in sub-Saharan Africa and beyond—as a highly accessible wallet that can integrate into the existing cash-in and cash-out channels, complementing the existing payment methods.

Highlights from the expo included:

• A meet-and-greet with the Zambian Minister of Technology and Science, Mr Felix Mutati. The team had the opportunity to give an elevator pitch on the market need for the Mandla Wallet. The minister received this well and extended an invitation for further dialogue.
• Onboarding over 100 retail users to the WhatsApp wallet included the opportunity to observe the users engaging with the wallet and receiving immediate feedback.
• Demonstrating several real-time cross-border payments via XRP, Ripple's cryptocurrency.

Tata-iMali Hosts Swiss Executive MBA Students

Collaborative Business Workshop

In November, Tata-iMali had the privilege of hosting Swiss Executive MBA students from the Swiss Federal Institute of Technology Lausanne (École Polytechnique Fédérale de Lausanne - EPFL) as part of Innocircle 's annual initiative. Now in its 7th year, this programme connects South African start-ups with world-class Swiss professionals, providing invaluable opportunities for expert consultation and collaborative problem-solving. Tata-iMali, a UCT Financial Innovation Hub GenesisBloc Launchpad pre-incubator alumnus, was selected as one of six South African start-ups for its innovative approach to addressing two critical challenges in financial inclusion: the high costs of cash reliance and the limited adoption of digital payment solutions. Existing digital payment providers often charge significant transaction fees, creating barriers to adoption and slowing the digital payment transformation outlined in the South African Reserve Bank 's (SARB) Vision 2025 strategy.

The workshop commenced on November 26th, with Tata-iMali and seven other companies presenting their core business challenges to 40 Swiss MBA students at the Waterfront. Tata-iMali's challenge focused on scaling its blockchain-enabled digital payment solution to meet the needs of lower-income consumers and merchants while ensuring affordability and accessibility.

On November 27th, a dedicated group of five MBA students engaged in a deep dive into Tata-iMali's business model at the Hub. They spent the day on-site, comprehensively understanding the company's operations and identifying potential growth opportunities. The students, accustomed to operating in highly regulated markets, brought a fresh perspective to Tata-iMali's challenges and were particularly impressed with the start-up's strong business fundamentals and market validation.

The programme concluded on November 28th, with the students presenting their findings and recommendations during a formal event at the Aquarium at the Waterfront. Their insights reflected a deep understanding of Tata-iMali's vision and offered innovative strategies to accelerate digital adoption while reducing the costs associated with cash reliance. Tata-iMali's participation highlights the value of global collaboration in tackling local challenges.

By addressing barriers to digital payment adoption, the company is making a tangible contribution to SARB's Vision 2025 strategy and positioning itself as a leader in financial innovation. This milestone is a testament to Tata-iMali's mission to revolutionise financial services and create meaningful impact in underserved communities.