Careers
Finance in Cape Town

South Africa’s banking sector has undergone rapid and widespread change in recent years, as disruptive technologies have forced banks to innovate and change old ways of doing business. It might be hard to imagine a world without mobile banking, but these and other digital developments, such as apps and online/mobile payments, are fairly recent. Notwithstanding these exciting changes, South Africa’s banking sector remains the most developed and well-regulated banking sector on the continent. That the sector is alive and well is demonstrated by the entrance of new players. These include Capitec, as well as the large number of global investments banks that have established branches and representative offices in South Africa. Due to the size and scope of the banking sector, there is almost no limit to the type of career that can be pursued within it. Apart from individuals engaged in the day-to-day business of banking, large banks have units dedicated to economic research and analysis, human resources, public relations and advertising. Many people spend their entire working lives in the same bank, moving between divisions and constantly being challenged in new ways. While bank tellers are fairly low-paid workers, banking executives in senior positions can earn several million rand a year as basic pay, not to mention performance bonuses and share options. Including performance-based pay and share awards, the chief executive officers of most banks earn more than R20 million a year. While bank tellers are fairly low-paid workers, banking executives in senior positions within the organisation can earn several million rand a year as basic pay, not to mention performance bonuses and share options. i nancial services cover a broad range of industries, including banking, insurance, asset management, credit and tax consulting. Each of these have undergone considerable regulatory and technological change in recent years, with the banking and insurance sectors in particular having to cater for more demanding techsavvy customers on the one hand, as well as ever more intrusive and onerous regulations on the other. The World Economic Forum’s Global Competitiveness Index consistently ranks South Africa’s financial services sector as one of the best in the world. It plays a vital role in promoting a culture of saving and investing in the economy, which is crucial to long-term GDP growth. The South African Reserve Bank (overseeing banks and deposit-taking institutions), the Financial Services Board (overseeing insurance companies and investment houses) and the National Credit Regulator (overseeing credit providers) in the main regulate the financial services sector. Those companies that provide a broad range of products, such as large banks, are subject to all three regulators. A business science or commerce degree is generally a basic requirement for a job in the sector, with many employers keen on a specialisation, such as a qualification as a chartered accountant or a postgraduate degree in economics or finance. If, for example, you would like to analyse and measure risk for a life insurance company, an actuarial science degree is your best bet. Short-term insurance companies require all kinds of expertise to underwrite (analyse) the risks they insure, which risks range from aviation and art to engineering and hospitality. So in effect you could study something outside of finance and find yourself working for an insurance company to help it understand the risks involved in insuring large dams or aeroplanes. As with banking, there are a range of secondary services that financial services organisations need, such as marketing, communications, IT and more. Santam, which is the short-term insurance arm of Sanlam, is the largest insurance company in the country by market share. Twin Peaks is a new piece of financial regulation that will see the South African Reserve Bank look after all regulation relating to the financial soundness of banks and insurers, while the Financial Services Board will become the market conduct regulator and ensure that financial services companies are treating their customers fairly.