How Tech and Data are Transforming the Financial Services Industry

At Masthead’s recent MasterClass, industry experts, regulators and advisors discussed how data, technology and compliance are transforming the financial services industry. Here are the main takeaways from the event.

Masthead’s last MasterClass for the year – held on 2 October at Cape Town’s Century City Conference Centre – explored how financial service providers (FSPs) can adapt to an evolving landscape shaped by technology, data and regulation.

Speakers from across the sector shared insights on using data to drive both compliance and business growth. They also explored why strengthening South Africa’s compliance culture is a national responsibility, as well as how to balance risk, regulation and client relationships in an industry built on trust.

The power of data and tech
Anri Dippenaar, Masthead’s Head of Compliance, explained how, under the Conduct of Financial Institutions (COFI) Bill and the Omni-Risk Return, data will be central to how FSPs demonstrate their Treating Customers Fairly (TCF) outcomes. But this isn’t just a regulatory exercise – data can also help FSPs run smarter, more profitable businesses. “Good conduct is good business – and data is the bridge between the two,” she explained.

Naomi Rugpath, Head of Distribution Technology at Discovery, spoke about how data and artificial intelligence (AI) can give advisors a competitive edge. Clients now expect instant, hyper-personalised advice – and with the right tools, advisors can turn data into insights that drive faster, more strategic decisions.

The Financial Sector Conduct Authority’s (FSCA) Head of Supervisory Framework, Loraine van Deventer, added that regulators are evolving too, embracing data and technology through the FSCA’s new Integrated Regulatory Solution (IRS) to enable smarter, more proactive supervision.

Across all three perspectives, one message came through clearly: data should be treated as capital, not a cost – and compliance and innovation can, and should, work together.

Getting off the greylist: the FIC calls on everyone to play their part
Christopher Malan, the Financial Intelligence Centre’s (FIC) Executive Manager for Compliance and Prevention, reminded FSPs that compliance is not just a regulatory obligation – it’s a national responsibility.

As South Africa prepares for the fifth round of the Financial Action Task Force (FATF) evaluation, he emphasised that every accountable institution plays a vital role in helping the country move off the greylist.

He put it plainly: “We need to ask ourselves – as a country, do we want to keep falling, or do we want to become a jurisdiction worth investing in? If we do, we must get off the greylist.”

Malan urged FSPs to keep their RMCPs relevant and applied, and to report suspicious transactions as soon as possible. He also stressed that accountable institutions must check the FIC’s goAML Message Board daily for critical updates. The FATF will assess whether these checks are being carried out – for example, by asking the FIC how many visitors its website receives.

Moreover, some updates can be urgent: when the UN Security Council amends its sanctions list, the FIC must publish it within 24 hours, and accountable institutions have that same window to check their clients.

Malan concluded with a reminder that meaningful change requires collaboration between all accountable institutions and the FIC, underscoring that collective action is essential for driving that change.

Balancing risk, regulation and relationships
Attendees were also reminded that today’s financial advisors must balance more than just portfolios – they manage risk, navigate regulation and build lasting client relationships.
Hloni Lephoto of Aon unpacked the true value of professional indemnity (PI) cover, showing how it safeguards both client trust and business continuity.

Attendees also received investment insights from Old Mutual Wealth’s Tiaan Herselman, who discussed retirement planning and tax efficiency, and Coronation’s Frederick Greeff, who explored disciplined investing and the importance of avoiding hindsight bias when making investment decisions.

The MasterClass concluded with a panel discussion during which IFAs shared insights from their own journeys – from those just starting out to those who have expanded or chosen to stay proudly small. The panel, moderated by Masthead Group’s Managing Director, Joleen John, featured Parveen Sonday (Future Forex), Darren Robertson (Opes Wealth) and Dreyer Goosen (Atlantic Wealth Managers).

They spoke about the value of partnering with the right compliance provider, hiring for cultural fit and embracing change as regulation becomes more forward-looking under COFI.

Key takeaways
Across every session, one clear message emerged: transformation in financial services is not just about keeping pace with regulation or technology – it’s about using both to create stronger, more ethical and more sustainable businesses.

As the industry prepares for new frameworks like COFI and the Omni-Risk Return, and faces challenges such as South Africa’s FATF greylisting, collaboration between regulators, compliance professionals and advisors will be vital.

The Masthead MasterClass highlighted that while the tools and regulations may evolve, the foundation of sound financial advice – integrity, adaptability and putting clients first – remains unchanged.