OPINION | Universal Basic Income Grant: who will profit?
There are risks in using a private company to pay the grants, write Abby May, Zen Mathe and Michael Marchant forThe Post Office and Postbank have failed to manage the social grants payment system. But the private sector is not an easy fix either. that the private sector should play a larger role in the payment of social grants. In this article we show that South Africa's social grants history reveals the dangers of thinking private companies are the easy answer.
This is not solely a South African issue. In 2022, the Transnational Institute published a study that examined experiences of fintech activity around the world. It found evidence that fintech interventions had led to an explosion in over-indebtedness for many individuals that increased poverty and vulnerability.
One of the core business objects for TymeBank has been financial inclusion. Young, rural, low-income women are among the most financially excluded and underserved individuals in South Africa and are an important target market for TymeBank. that Tymebank was offering interest-free early grant access to social grant recipients. In other words, Tymebank would offer grant recipients a portion of their grants before the grants are paid into their accounts.
On the issue of protecting grant recipients from fraud related to their grants, Ramontsha said TymeBank has 'stringent process controls to prevent and detect fraudulent activities; this is to protect all our customers across the economic spectrum' including grant recipients. The bank also ensures that Grant Advance is offered to the rightful grant recipient by making it available only to customers that have a FICA verified EveryDay Account .
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