Fintech is set to boom in South Africa and the regulatory environment is likely to be conducive for growth in this space. But, a collaboration between the regulators and technology entrepreneurs is needed to boost the industry, writes AHMED CASSIM.
Global investment in fintech ventures has tripled over the last five years and will double again to an estimated $6 billion by 2018, according to a recent report by Accenture and the Partnership Fund of New York City. This growing industry clearly carries significant potential for boosting the local economy and needs to be nourished as far as possible.
The Hello Group understands regulation. Back in 2010 when the Group initially launched a SIM card for migrants to call their loved ones all across the world, it could not have done so if it did not hold a licence as issued by the telecoms Regulator, ICASA (Independent Communications Authority of South Africa). Three years later, we wanted to offer our customers an international remittance offering and it was perfect timing as the South African Reserve Bank had just issued new regulations making it easier for independent money operators to enter the market.
The company was involved in engagement with the regulatory authorities when the regulations were still fairly new. Hello Paisa, the Group’s international remittance offering was the first recipient of an “independent money transfer operator” license which allows the Group to offer its customers an instant, cheap and legal way to send money home.
It was ground-breaking to see that the Reserve Bank was so proactive in implementing new regulations and this is extremely encouraging in terms of growth prospects and innovation in the financial services industry.
Prior to the change in the regulatory environment, migrants working in South Africa were forced to use informal and illegal channels in order to ensure that their hard earned cash was sent back to their families at home. The illegal process meant it was expensive, there was a lack of transparency around pricing and inevitable delays in transferring of funds.
The regulations have paved the way for a healthier, more transparent environment where consumers are able to access a service that is transparent and offers the advantage of money being immediately available to recipients in other countries. Our shortest transfer time is literally two seconds to send money across the globe.
Looking globally, the development of the fintech industry is a key driver in the financial services market. However, as with all new developments in any field, the key to a smooth progression is a “meeting of the minds” between regulators and techpreneurs. For example, in Singapore, the Monetary Authority of Singapore created a regulatory sandbox in June this year. This essentially allows fintech companies to experiment with possible solutions/products for the market, carry out due diligence on their projects and then discuss a way forward in terms of regulatory requirements where it is less clear whether particular FinTech solutions comply with regulatory requirements or poses unacceptable risks.
The danger of a regulatory authority that is reluctant to adapt regulations to better embrace new technology is that this could lead to techpreneurs taking their ideas to friendlier jurisdictions. A further danger is that of international fintechs from more regulatory-friendly jurisdictions stealing the march on local companies. We could end up with a situation where foreign fintechs simply use the internet to offer their services and bypass local regulators. A clear example of this is the fact that Whatsapp offers VOIP (voice over internet protocol) telecom services in SA without a license. In line with this thought, it is extremely encouraging that the Reserve Bank has made it clear that it is open to ideas and very supportive of the country’s burgeoning fintech industry.
- Ahmed Cassim, chief commercial officer at Hello Group
Wannacry still alive
One and a half years after its epidemic, WannaCry ransomware tops the list of the most widespread cryptor families and the ransomware has attacked 74,621 unique users worldwide.
These attacks accounted for 28.72% of all users targeted by cryptors in Q3 2018. The percentage has risen over the last year, demonstrating more than two thirds growth against Q3 2017, when its share in cryptor attacks was 16.78%. This is just one of the main findings from Kaspersky Lab’s Q3 IT threat evolution report.
A series of cyberattacks with WannaCry cryptor occurred in May 2017 and is still considered to be one of the biggest ransomware epidemics in history. Even though Windows released a patch for its operating system to close the vulnerability exploited by EternalBlue 2 months prior to the start of the attacks, WannaCry still affected hundreds of thousands devices around the globe. As cryptors do, WannaCry turned files on victims’ computers into encrypted data and demanded ransom for decryption keys (created by threat actors to decipher the files and transform them back into the original data) making it impossible to operate the infected device.
The consequences of the WannaCry epidemic were devastating: as the victims were mainly organisations with networked systems – the work of businesses, factories and hospitals was paralysed. Even though this case demonstrated the dangers cryptors pose, and most of PCs around the world have been updated to resist the EternalBlue exploit, the statistics show that criminals still try to exploit those computers that weren’t patched and there are still plenty of them around the globe.
Overall, Kaspersky Lab security solution protected 259,867 unique users from cryptors attacks, showing a substantial rise of 39% since Q2 2018, when the figure was 158,921. The growth was rapid yet steady, with a monthly observed increase in the number of users.
“The rising share of WannaCry attacks is another reminder that epidemics don’t end as fast as they start – there are always long-running consequences. In the case of cryptors, attacks can be so severe that it is necessary to take preventive measures and patch the device, rather than deal with encrypted files later,” said Fedor Sinitsyn, security researcher at Kaspersky Lab.
To reduce the risk of infection by WannaCry and other cryptors, users are advised to:
- Always update your operating system to eliminate recent vulnerabilities and use a robust security solution with updated databases. It is also important to use the security solution that has specialised technologies to protect your data from ransomware, as Kaspersky Lab’s solutions do. Even if the newest yet unknown malware does manage to sneak through, Kaspersky Lab’s System Watcher technology is able to block and roll back all malicious changes made on a device, including the encryption of files.
- If you have bad luck and all your files are encrypted with cryptomalware, it is not recommended to pay cybercriminals, as it encourages them to continue their dirty business and infect more people’s devices. It is better to find a decryptor on the Internet – some of them are available for free here: https://noransom.kaspersky.com/
· It is also important to always have fresh backup copies of your files to be able to replace them in case they are lost (e.g. due to malware or a broken device), and store them not only on the physical object but also in cloud storage for greater reliability (don’t forget to protect your cloud storage with strong hack-proof password!)
· If you’re a business, enhance your preferred third-party security solution with the newest version of the free Kaspersky Anti-Ransomware Tool.
· To protect the corporate environment, educate your employees and IT teams, keep sensitive data separate, restrict access, and always back up everything.
· Use a dedicated security solution, such as Kaspersky Endpoint Security for Business that is powered by behaviour detection and able to roll back malicious actions. It should also include Vulnerability and Patch management features that automatically eliminates vulnerabilities and installs updates. This reduces the risk of vulnerabilities in popular software being used by cybercriminals.
· Last, but not least, remember that ransomware is a criminal offence. You shouldn’t pay. If you become a victim, report it to your local law enforcement agency.
Nokia 6.1 gets slice of Pie
HMD Global has announced that the Nokia 6.1 will start receiving Android 9 Pie – the second smartphone in the portfolio to receive the latest version of Android less than a month after the update arrived on the Nokia 7 plus.
Packed with Google’s newest software and building on the features of Android 8.0 Oreo, Android 9 Pie’s focus on artificial intelligence and machine learning gives owners a more customised and tailored experience.
Powered by the Qualcomm Snapdragon 630 Mobile Platform, the Nokia 6.1 is over 60% faster than its predecessor. Also, now offering enhanced Dual-Sight, ZEISS optics, USB-C fast-charging, Nokia spatial audio and pure, secure and up-to-date Android Oreo.
The Nokia 6.1 has been selected by Google to join the Android One family and therefore users get exclusive access to Apps Actions – a feature only available to Android One and Google Pixel devices. App Actions helps users get things done faster by predicting their next move and displaying the right action on right away.
Now with Android 9 Pie, the Nokia 6.1’s already impressive battery life is further complimented with the introduction of Adaptive Battery, an update that uses deep learning to understand usage patterns and prioritise battery power on the most important apps.
Other key features of Android 9
· Slices – Identifies relevant information on favourite apps to make them more easily accessible when needed
· Adaptive Brightness – Automatically adapts phone brightness by learning from interactions with different settings
· New system navigation – Features a single home button that provides intelligent predictions and suggestions (user enabled)