SARB approves digital banking platform for South African SMEs

IN A MOVE set to make the life of business owners in the country easier, the South African Reserve Bank (SARB) granted regulatory approval for a groundbreaking partnership designed to revolutionise SME banking in South Africa.

This collaboration, powered by Access Bank South Africa Ltd and driven by Sava, will introduce Africa’s smartest digital banking platform, enabling SMEs to take full control of their financial operations and unlock new growth opportunities.

Established in 2022, Sava is a digital banking platform tailored to the needs of African businesses.

The Prudential Authority (PA), a division of SARB tasked with regulating banks, formally approved Sava’s digital banking platform, marking a significant milestone in financial innovation for small and medium-sized enterprises.

Sava said it recently partnered with Mastercard to leverage Sava’s payment transaction system offering businesses in South Africa, Nigeria, Kenya and Egypt state-of-the-art expense management tools.

These include digital accounts, rule-based card issuing, that is available in both physical and virtual cards, invoicing management, customise workflows with built-in AI functionality, and seamless accounting integrations.

The platform enables SMEs to streamline expense management, saving both time and money while fostering financial transparency and efficiency.

SMEs account for 60% of all jobs in Africa and contribute up to half of the GDP in some countries yet they often operate in cash-based economies and face a staggering US$330 billion financing gap, according to the World Bank.

This collaboration underscores Mastercard’s commitment to financial inclusion, aligning with its global pledge to integrate 50 million SMMEs into the digital economy by 2025.

“At Mastercard, we are dedicated to harnessing the power of partnerships and deploying transformative technology to build a sustainable future where everyone can thrive. Our new collaboration with Sava represents an important step in our efforts to support small businesses that are key drivers of economic growth. By deploying the right, efficient technology, we continue to boost financial inclusion in Africa and enable SMMEs to reap the full benefits of the digital economy,” said Dimitrios Dosis, President, EEMEA, Mastercard.

Pioneering the Future of SME Banking

Sava said it successfully completed industry testing, integrated into the national payments system, and fulfilled all necessary go-live conditions stipulated by regulators.

The company further said it obtained licenses and approvals from the Financial Sector Conduct Authority (FSCA) and the National Credit Regulator (NCR).

“We are thrilled to have received the necessary regulatory approvals, enabling Sava to transform the SME banking landscape in South Africa," said Kolawole Olajide, CEO at Sava.

“Our platform addresses the unique challenges faced by SMEs, serving diverse businesses from traditional sectors to emerging fintech players, empowering them to thrive in an increasingly digital world,” Olajide further added.

Additionally, Sava underwent an audit with Deloitte.

Sava’s platform offers comprehensive budgeting and expense management solutions through versatile cards and digital wallets, with built-in AI functionality.

With Sava, business owners and accounting teams can enforce company-specific spending rules across budgets, departments, staff, locations, and service providers, helping businesses eliminate inefficiencies and accelerate growth.

Sava stated it secured client contracts to manage over R2.2bn in 2025.

BUSINESS REPORT