In South Africa's expanding fintech sector, companies like LifeCheq, Doshguide, and TaxTim are transforming how individuals access unbiased financial guidance and tax services. These platforms address longstanding issues in traditional advice tied to product sales, using technology to make planning more accessible and transparent. Founders share personal motivations behind their innovations, aiming to serve underserved markets.
Financial advice has long been linked to product sales worldwide, but South African fintechs are shifting this paradigm. LifeCheq, founded in 2015 by Abubakari Addae, began as a direct advice service and now offers tools to over 8,000 advisers handling more than a million transactions annually. With 100 global employees, the platform employs AI to streamline sessions, ensuring quality advice akin to online shopping. Addae, inspired by his sister's experience with unsuitable policies amid student debt, stresses systematizing good advice. "The key thing is you have to first define what good advice is, and then systematise it," he said. AI analyzes post-session advice, provides recommendations, and prompts advisers to justify deviations, promoting accountability.
Doshguide, led by Rory Brachner, targets the "unadvised"—those without early access to personalized planning, often waiting until their 40s or 50s. Brachner's own loss of 25% in retirement savings due to a mismatched annuity fueled its creation. The firm uses a flat-fee model, with advisers charging monthly subscriptions, hourly rates, or project fees, free from commissions. "People are just a little fed up with being sold products when actually what they need is advice," Brachner noted, urging early action in personal finances.
TaxTim, launched in 2011, eases tax filing through guided steps integrated with the South African Revenue Service. Director Daniel Swiegers explained it automates submissions for individuals and provisionals, offering tiered packages by complexity. Though not advisers, they educate users, attracting three million annual website visitors. In 2024, LifeCheq secured R160 million from Summit Private Equity Fund for African and Asian expansion, enhancing accessibility. These innovations empower better decisions, as seen in Addae's sister opening her medical practice after sound interventions.