Sanlam’s Johan van Zyl says financial services has major contribution in growing SA’s economy

Sanlam Group Chief Executive and chairman of the Association for Savings and Investment in South Africa (ASISA), Dr Johan van Zyl

The efficient provision of financial services has an important contribution to make in supporting South Africa in achieving one of its key imperatives – increasing the growth rate of the economy in an inclusive way.

So says Sanlam Group Chief Executive and chairman of the Association for Savings and Investment in South Africa (ASISA), Dr Johan van Zyl, who yesterday (Wednesday, March 23) delivered the opening address at the annual ASISA Conference currently being held at Sun City in the North West province.

Dr Van Zyl says the South African financial system is highly rated internationally and leads in many respects. Locally, however, the challenge remains for the sector to bridge the divide between the first world and the emerging market dimensions of the economy, which results in issues of access with regard to payments and insurance services and the intermediation of savings to developmental needs.

The solution to these challenges, Dr Van Zyl argues, is to recognise that the financial services industry’s right to exist is fundamentally intertwined with the public perception of the social usefulness of the sector. The industry should also proactively identify and rectify shortcomings in the efficient provision of financial services while ensuring that financial institutions are run as profitable businesses.

“As the custodians of the bulk of South Africa’s savings and investments, ASISA and its members must ensure, in the interests of the country and its citizens, that the South African savings and investment industry remains relevant and sustainable into the future,” he says.

“It is also ASISA’s role to ensure that as a collective, our industry remains relevant and sustainable by delivering solutions that are in line with the needs of the country, taking into consideration global and local developments and challenges. At the same time, we need to recognise the hurdles created by our country’s legacy and work with our policy makers to develop solutions that will help us to overcome these.”