Addressing a Gordon Institute of Business Science (GIBS) Forum, senior partner at BCG Johannesburg, Adam Ikdal, said: “On the metrics, compared to other emerging markets, South Africa is below average.”
South Africa has made gains in providing previously unbanked people access to accounts, the most basic measure of financial inclusion. However, a significant trust deficit and lack of financial literacy is holding the country back from achieving greater socioeconomic development.
The country remains largely a cash society, with low-income consumers wary of fees and a sense of distrust of many financial services, a report on Improving Financial Inclusion in South Africa by The Boston Consulting Group found.
The report measured four product categories: credit, savings, insurance, and transaction accounts.