Legislative and Other Selected Challenges Affecting Financial Inclusion for the Poor and Low Income Earners in South Africa

Abstract This article discusses the challenges affecting the achievement of financial inclusion for the poor and low-income earners in South Africa. The concept of financial inclusion could be defined as the provision of affordable financial products and services to all members of the society by the government and/or other relevant role-players such as financial services providers. This article identifies unemployment, poverty, financial illiteracy, over-indebtedness, high bank fees, mistrust of the banking system, lack of relevant national identity documentation and poor legislative framework for financial inclusion as some of the challenges affecting the full attainment of financial inclusion for the poor and low-income earners in South Africa. Given these flaws, the article highlights the need for the government, financial institutions and other relevant stakeholders to adopt legislative and other measures as an antidote to financial exclusion and poverty challenges affecting the poor and low-income earners in South Africa.


INTRODUCTION
The concept of financial inclusion could be defined as the provision of affordable financial products and services to all members of society by the government and/or other relevant role-players, such as financial services providers. 1 Financial inclusion enables all persons to have legal ownership of their financial products and/or bank accounts at any lawfully registered financial institution in their country after complying with all relevant requirements. Financial inclusion may further empower all financial consumers to borrow money formally from banks and other registered financial service providers in a bid to alleviate their poverty. Financial inclusion is vitally important to all persons, especially the poor and low-income earners in South Africa. 2 Accordingly, the South African government should adopt more sustainable measures to empower the poor and low-income earners financially and economically, so as to reverse the negative effects of apartheid upon all its citizens. This approach could promote financial inclusion for the poor and low-income earners and close the gap between the poor and the rich in South Africa.
On the contrary, financial exclusion could, inter alia, refer to the inability of the affected persons to formally access and use financial services and financial products at an affordable cost in any country. Thus, financial exclusion could mean the removal, exclusion, disqualification or prohibition of certain persons from accessing financial products and services such as loans, credit, bank accounts and insurance cover from relevant financial services providers. 3 Our emphasis is that financial exclusion is mostly detrimental to the socioeconomic wellbeing of the poor and low-income earners in South Africa and many other developing countries, such as Zimbabwe. Poverty aggravated financial exclusion is common in South Africa; it affects the poor and lowincome earners that cannot afford formal and informal high banking costs, related financial services costs and costs for financial products. Thus, notwithstanding the fact that financial inclusion has relatively improved in South Africa, with a total of 32.5 million adults of the total population having access to the formal banking sector between 2008 and 2015, 4 a significant number of the poor and low-income earners are still excluded from accessing most basic financial services and financial products. About 30 million South Africans are still poor and some of them struggle to access financial services and financial products due to, inter alia, lack of the required documentation to open a bank account, lack of trust in the banks, high bank fees and financial illiteracy. 5 Some South African adults have bank accounts but some of these persons withdraw their income immediately instead of saving for future financial obligations. 6 This shows that some people in South Africa are not actively using their accounts to achieve better financial goals and/or taking advantage of financial services at their disposal to save and invest through their own bank accounts. 7 Moreover, most poor people in South Africa rely on government social grants and they cannot afford, nor do they qualify for, bank accounts. 8 In light of the above, it must be noted that there is voluntary and involuntary financial exclusion. 9 The poor and low-income earners may sometimes voluntarily exclude themselves from accessing certain financial products and services owing to their mistrust of the banking sector and their cultural beliefs. 10 On the other hand, some poor and low-income earners are involuntarily excluded from accessing basic financial services and financial products due to their low income that is insufficient for them to open and maintain bank accounts. The poor and low-income earners are also discouraged from accessing such services and products due to other stringent requirements by Abrahams "Financial inclusion in South Africa", above at note 5 at 639-40; Arun and Kamath "Financial inclusion", above at note 4 at 281-87; D Gupta "Key barriers faced in implementing financial inclusion" (2015) 3/1 International Journal of Engineering Technology, Management and Applied Sciences 171; C Gortsos "Financial inclusion: An overview of its various dimensions and the initiatives to enhance its current level" (2016) SSRN Electronic Journal 1 at 10. 10 A Demirgüç-Kunt, L Klapper, D Singer and P Van Oudheusden "The global findex database 2014: Measuring financial inclusion around the world" (2015, policy research working paper 7255); Abrahams "Financial inclusion in South Africa", above at note 5 at 635 and 639-40. the banks and related financial institutions. 11 Additionally, high bank charges and a lack of financial literacy also cause financial exclusion of the poor and low-income earners in South Africa. 12 The authors argue that financial exclusion negatively affects the promotion of socio-economic development and the reduction of poverty for the poor and low-income earners who cannot afford to save money for other important socio-economic services like those related to their health and education. Financial exclusion also prevents the poor and low-income earners from accessing most basic financial services and financial products in South Africa. 13 It is because of this and related flaws that financial inclusion should be carefully and valuably promoted to increase the growth of South Africa's gross domestic product (GDP). Proper implementation of financial inclusion laws and regulations could also attract foreign direct investment (FDI) and create more business opportunities and jobs for the poor and low-income earners in South Africa. 14 For instance, the provision of affordable financial services and financial products by banks and related financial institutions could help the poor and lowincome earners to obtain high quality financial services and financial products that may promote economic stability, public investor confidence and market integrity in South Africa. 15 Accordingly, financial inclusion could enable South Africa to fight poverty and empower the poor and low-income earners to access basic financial services, financial products and credit rights fairly. 16 In light of the above, this article discusses selected contemporary challenges hindering the full achievement of financial inclusion for the poor and lowincome earners in South Africa. The article identifies unemployment, poverty, financial illiteracy, over-indebtedness, high bank fees, mistrust of the banking system, a lack of relevant national identity documentation and a poor legislative framework for financial inclusion as some of the challenges affecting the full attainment of financial inclusion for the poor and low-income earners in South Africa. These aforesaid challenges have to date delayed South Africa in achieving its target of reaching 90 per cent financial inclusion by 2030, as set out in the National Development Plan (NDP). 17 Given these flaws, it is submitted that the government and other relevant stakeholders should adopt robust measures and policies to alleviate poverty and curb financial exclusion to enable the poor and low-income earners to have formal bank accounts and shun illegal high cost credit lenders in South Africa. This article highlights the need for the government, financial institutions and other relevant stakeholders to adopt more appropriate measures to enhance financial inclusion for the poor and low-income earners in South Africa as a legislative antidote to financial exclusion and poverty challenges. It is submitted that the government and financial institutions should promote social justice, equity and sustainable transformation for all persons, especially the poor and low-income earners, to enable them to access convenient, affordable and good financial services and financial products in South Africa. 18

CHALLENGES TO FINANCIAL INCLUSION IN SOUTH AFRICA Unemployment and poverty
Unemployment and poverty are huge impediments to the full realization and attainment of financial inclusion in South Africa. Most poor, unemployed and low-income earners can barely afford bank accounts and their related transaction costs. 19 According to the Statistics South Africa 2017 report, poverty levels were very high and about 30.4 million South Africans were living in poverty and they were unable to sustain their bank accounts. 20 These poverty trends were mainly influenced by poor economic growth, high unemployment levels, high prices for basic commodities, low investment rates and too much reliance on high interest credit loans on the part of many South African individuals. 21 Consequently, about 30.4 million South African adults could not afford bank accounts and remained excluded from accessing basic financial services and financial products. 22 Moreover, the poor and low-income earners who are informally employed carry out most of their day-to-day dealings in cash, since they do not qualify to utilize formal banking institutions for the purposes of saving and/or budgeting for future financial obligations. 23 Although the use of cash does not amount to financial exclusion per se, the poor and low-income earners, who are mostly illiterate and so unable to transact through internet banking or other digital channels, are the ones who transact in cash without opening bank accounts or saving for the future. 24 The NDP stipulates that South Africa should strive to eliminate poverty through financial inclusion, especially of the poor and low-income earners. 25 Nonetheless, the South African government has so far failed to create more jobs for the poor and low-income earners, who have largely remained excluded from accessing and utilizing most basic financial services and financial products. 26 This clearly shows that unemployment and poverty are still huge impediments to the full attainment of financial inclusion for the poor and low-income earners in South Africa. Nonetheless, there is no legislation that expressly addresses unemployment and poverty challenges to financial inclusion in South Africa.

Financial illiteracy
Financial literacy refers, inter alia, to the ability of an individual to make well informed judgments and decisions regarding the management of their finances for both short and long term financial goals, taking into consideration any change that could occur in economic events and/or related aspects. 27 This suggests that individuals must have some basic education, skills, understanding and knowledge of various financial services and products to enable them to make correct decisions regarding their personal finance, credit borrowing and investments. Financial illiteracy occurs when financial consumers do not have the basic education, skills, understanding and knowledge of the available financial services and products to enable them to make informed decisions regarding their personal finance, credit borrowing and investments in the future. 28 Financial literacy has various components such as financial education, financial knowledge, financial competence and financial responsibility which are all crucial for the achievement of financial inclusion. 29 These components relate to financial consumers' personal understanding of financial concepts, financial institutions and financial regulations, as well as the empowerment of such consumers with the knowledge, skills and confidence to understand, manage and make well-informed financial decisions. 30 Consequently, it is important for the poor and low-income earners in South Africa to acquaint themselves with all the aforementioned components in order to become financially literate. It is submitted that some financial consumers, particularly the poor and low-income earners who are informally employed and those who reside in the informal settlements and rural areas in South Africa, are not financially literate. This suggests that the majority of people in South Africa are still financially illiterate and more vulnerable to reckless spending and predatory lending, and they are excluded from enjoying the basic financial services and products that are offered by the formal financial institutions. 31 Thus, despite the fact that since the demise of apartheid in 1994 32 various legislation and related measures for financial inclusion have been adopted, more still needs to be done to increase financial literacy and curb financial exclusion of the poor and low-income earners in South Africa. 33 This approach could enhance financial consumer participation in the available financial services and products offered in the formal banking sector to promote financial inclusion in South Africa. 34 In light of the above, the importance of financial education measures to promote financial literacy and financial inclusion is briefly discussed below.
28 WR Emmons "Consumer-finance myths and other obstacles to financial literacy" (2005) 24 Saint Louis University Public Law Review 335; Zait and Bertea "Financial literacy", above at note 27. 29 Zait and Bertea, ibid. 30 Nanziri and Leibbrandt "Measuring and profiling", above at note 5; L de Koker and N Jentzsch "Financial inclusion and financial integrity: Aligned incentives?" (2011, paper presented at the Shadow Economy, Tax Evasion and Money Laundering Conference, University of Münster, Münster, Germany).

Legislative and regulatory measures for financial education in South Africa
The Consumer Protection Act (CPA) 35 was enacted in 2008 to promote a fair and accessible marketplace for consumer products and services in order to develop good norms and national standards for consumer protection in South Africa. The CPA prohibits any unfair marketing and related business practices that are unlawful to financial consumers in South Africa. It also promotes best practices and standards for the dissemination of relevant consumer information in South Africa. 36 The CPA was probably aimed at encouraging the relevant authorities to promote adequate financial education and financial literacy measures among all financial consumers to enhance financial inclusion in South Africa. The Provincial Consumer Affairs Offices (PCAOs) and/or the Provincial Consumer Protection Offices (PCPOs) were reportedly established under the CPA to increase financial consumer education and related information so as to enhance the financial literacy of financial consumers in all the provinces of South Africa. However, there are still high levels of over-indebtedness among South African people, especially the poor and low-income earners who are financially illiterate. 37 The CPA does not have specific provisions that oblige the National Consumer Commission (NCC), the PCAOs and the PCPOs to provide financial education to all financial consumers in order to promote financial inclusion of the poor and lowincome earners in South Africa. 38 The National Credit Act (NCA) 39 was enacted in 2005 to regulate consumer credit and improve standards of consumer information in South Africa. The NCA prohibits any unfair credit and credit-marketing practices, in order to promote responsible credit granting and prohibit reckless credit lending. 40 This approach is generally in line with the provision of adequate financial education by the relevant authorities, such as the National Credit Regulator (NCR) and the National Consumer Tribunal (NCT), to increase fair, accessible and efficient credit markets that promote financial literacy and financial inclusion of all financial consumers in South Africa. 41 The NCA regulates the affairs of financial consumers and credit providers by obliging such credit providers and other financial services providers to provide consumer education on credit and consumer rights, and standardized information on consumer goods and services, in order to protect financial consumers from deception and unfair and/or fraudulent conduct by credit providers and other financial services providers in South Africa. 42 The NCA requires all credit providers to provide financial consumer education measures to enable all persons to make informed financial decisions and curb over-indebtedness in South Africa. 43 Nonetheless, the NCA does not expressly provide any measures to enhance the financial inclusion of the poor and low-income earners in South Africa through radical financial education measures. 44 Moreover, about 50 per cent of the total adult population in South Africa comprises the poor and low-income earners who are financially illiterate. 45 Additionally, although the NCA has dealt with all credit-related matters and financial education matters since 2006, the NCR has to date struggled to consistently provide financial education workshops, conference presentations, financial education brochures, radio and television interviews to enhance financial consumer literacy and increase financial inclusion in South Africa. 46 Very few people are aware of the NCR and its functions, particularly in respect of financial inclusion. 47 Wentzel argues that relatively few low-income earners and the poor have received financial education from the NCR to date. 48 In 2017, the Financial Sector Conduct Authority (FSCA) was introduced as one of the regulators that promote consumer protection, financial literacy and financial education in South Africa. 49 Nonetheless, the FSCA has not yet achieved more success in its bid to provide adequate financial education and financial literacy to increase financial inclusion since its inception. 50 42 NCA, secs 60-100. However, it is encouraging to note that the Financial Sector Regulation Act (FSRA) expressly obliges the FSCA to promote financial inclusion for all persons in South Africa. 51 Despite this, most black people, especially the poor and low-income earners, have remained financially illiterate and they struggle with financial planning. 52 This follows the fact that the poor and low-income earners have no understanding of most financial services and products. Consequently, most of the poor and low-income earners in South Africa do not have bank accounts. 53 Thus, although the introduction of the Mzansi account system was a positive step towards promoting financial education, financial literacy and financial inclusion in South Africa, the majority of the poor and low-income earners still do not have access to formal financial services and financial products. 54 It also appears that the poor and low-income earners do not trust the formal banking sector, since they remain side-lined from it due to their fears of high bank charges and high interests rates. 55 In light of the above, it is submitted that all the financial services providers, regulatory authorities and other relevant persons should revamp their efforts to curb financial exclusion of the poor and low-income earners through adequate financial consumer education and financial literacy measures. 56

Over-indebtedness
Over-indebtedness occurs when a person or financial consumer is unable to timeously satisfy all the accrued debt obligations under any credit agreement and/or facility to which the person or financial consumer is a party. 57 This  58 However, the same report also stipulates that some people in South Africa did not save money. 59 The majority of the poor and low-income earners are in debt and unable to save their money due to unemployment, lack of surplus income after subsistence deductions and high bank transaction fees. 60 As a result, the poor and low-income earners who do not save money end up seeking credit loans from other informal sources that charge exorbitant interest rates.
Additionally, most jobless financial consumers end up with many debts that they accumulate in a bid to take care of their day-to-day business. 61 Ssebagala correctly submits that poverty and financial illiteracy are two of the main causes of over-indebtedness amongst the poor and low-income earners in South Africa. 62 Moreover, some financial consumers are affected by overindebtedness owing to their low-income jobs which provide them with inadequate finances, while others end up with numerous debts due to poor planning and overspending. 63 In light of this, financial services providers should consider introducing less onerous requirements for savings accounts in respect of the poor and low-income earners in South Africa, to enable them to save some money and shun overspending and over-indebtedness. This could enhance financial inclusion for the poor and low-income earners in South Africa.
The NCA prohibits reckless borrowing among financial consumers so as to protect them from over-indebtedness. 64 Furthermore, the NCA prohibits reckless credit granting by financial credit providers and contractual default by financial consumers. 65 This shows that the NCA seeks to protect the poor and low-income earners in South Africa from the reckless credit granting by financial credit providers that eventually gives rise to their overindebtedness. 66 For instance, the NCA provides for reckless credit, overindebtedness and debt review measures in a bid to equip financial consumers to avoid over-indebtedness and irresponsible borrowing. 67 However, poverty, low income and socio-economic hardships have at times caused the poor and low-income earners to accumulate more debts in South Africa without any means to settle them thereafter. 68 Put differently, high informal credit rates in the form of stokvels and loan sharks that charge excessive interest are commonly utilized in South Africa, to the detriment of the poor and lowincome earners who rely on credit since they do not qualify to have access to most formal financial services and products. 69 This status quo has been exacerbated by the fact that informal credit platforms (ICPs) are unregulated in South Africa. There are no provisions under the NCA, the CPA and the FSRA that specifically prohibit anyone from relying on ICPs in South Africa. Thus, unlike the formal credit platforms, which are statutorily regulated and/or subject to common law interest rate restrictions such as the in duplum rule, 70 the ICPs are not statutorily regulated and are open to abuse by the informal lenders that provide unreasonable high-interest rate loans to the poor and lowincome financial consumers who are normally excluded from accessing the formal financial services and products in South Africa. 71 High bank fee structure Although the financial inclusion rate in South Africa is currently 87 per cent, and the target is to achieve 90 per cent by 2030, 72 the high transaction fees that are charged by banks pose a huge threat to the promotion of financial inclusion of the poor and low-income earners in South Africa. 73 It is submitted that about 25 per cent of the poor people who do not have bank accounts cite unemployment and high bank fees and transaction charges as the greatest impediment to their opening of formal bank accounts in South Africa. 74 Additionally, it is submitted that about 40 per cent of banking customers in South Africa often complain about high bank fees and eventually close their bank accounts due to, inter alia, high bank transaction charges. 75 Kessler et al argue that the banking fees in South Africa are four times higher than those of other banks in countries like Germany, Australia and India. 76 As a result, the poor and low-income earners are deterred from opening bank accounts in South Africa. Most financial consumers in South Africa complain further that their banked money often loses value through numerous frivolous transaction fees charged by the banks. This status quo has culminated in constant financial exclusion of the poor and low-income earners in South Africa. 77 Louis and Chartier also argue that the high fee structure that is employed in South Africa is caused by the banking ownership monopoly of four major banks, namely, the Amalgamated Banks of South Africa (ABSA), the Nedbank, the Standard Bank and the First National Bank. 78 This bank ownership monopoly reduces competition among banks and this eventually discourages financial inclusion, since only a few large banks will monopolize the market in order to share the available financial consumers among themselves without necessarily reducing their transaction fees. Accordingly, the authors submit that competition amongst banking institutions must be encouraged in South Africa to enable many banks to come up with innovative, cheaper financial services and products to offer to financial consumers. This approach could help to reduce high bank fees and the negative perceptions associated with banks in order to promote financial inclusion of the poor and low-income earners in South Africa. 79 High bank fees are among the main factors that give rise to financial exclusion, especially among the poor and low-income earners who cannot afford and/or qualify to have access to formal banking services and products in South Africa. 80 High bank fees have driven some financial consumers, particularly the poor and low-income earners, to rely on cash transactions in order to avoid high bank transaction costs. 81 The trend of withdrawing income immediately after receipt and/or utilizing bank accounts as mailboxes and for their remittances 82 increases financial exclusion for the poor and low-income earners in South Africa.

Mistrust of the formal banking sector and the fear of fraud
High levels of financial illiteracy amongst the poor and low-income earners 83 have contributed to their mistrust of the banks and other formal financial services providers in South Africa. 84 Various factors, such as high bank fees, high interest rates, misleading advertisements and poor marketing of financial products, have led the poor and low-income earners to be skeptical about the banks' financial products and financial services. Ouma, Odongo and Were argue that some banking institutions ambush financial consumers into purchasing insurance and financial products without providing prior adequate financial educational awareness measures on such products. 85 The authors submit that the aforesaid ambush practice includes, inter alia, the selling of funeral policies and other non-essential insurance financial products to the poor and low-income earners. This exacerbates poverty and financial exclusion of the poor and low-income earners in South Africa. 86 Given this background, it is submitted that South African financial institutions must carefully provide adequate financial education before they offer any financial products and financial services to their clients, in order to promote financial inclusion and avoid over-burdening the poor and low-income earners with unnecessary products. This view is further supported by Adam Ikdal, who argues that some banking institutions deliberately offer non-essential funeral coverage and micro-loans to the poor and low-income earners, which culminates in their overindebtedness. 87 These and other illicit practices of financial services providers have to date increased the mistrust of banking and financial institutions by the poor and low-income earners in South Africa. Furthermore, the recent mismanagement and embezzlement of over R2 billion funds of the poor, pensioners and low-income earners at the Venda Building Society mutual bank (VBS bank) could have contributed to the 82 C Coovadia Annual Report: Making Financial Markets Work for the Poor (2017, Finmark Trust). 83 Nanziri and Leibbrandt "Measuring and profiling", above at note 5 at 1-11; Mondlana "Role of language", above at note 51 at 16. ongoing mistrust of banks by some financial consumers in South Africa. 88 The VBS scandal indicates that mutual banks are poorly regulated in South Africa. This has further increased the mistrust of the entire banking sector by the poor and low-income earners in South Africa. 89 Most of the poor and low-income earners do not utilize online banking and mobile banking due to fears of internet-related fraudulent activities that could be perpetrated through banks in South Africa. 90 Additionally, some poor and low-income earners prefer transacting in cash due to their strong belief that it is cheaper than online banking and mobile banking. 91 It is submitted that reliance on cash increases impulsive buying, which is detrimental to the financial inclusion of the poor and low-income earners in South Africa. The National Stokvel Association of South Africa submits that 40 per cent of the poor and low-income earners in South Africa prefer trust-based models such as stokvels, which are community-based, to avoid default payments and high bank charges. 92 A stokvel allows its consumers to create a pool of savings where members agree to contribute a certain amount of money that is distributed fairly amongst them after a certain period of time. This stokvel model is convenient for some poor and low-income earners and serves as a great tool that encourages them to save their money. 93 Furthermore, the poor and lowincome earners who prefer stokvels cite their use of simple common language as one of the leading factors in choosing them, while they are forced to shun formal banking services and financial products that are normally offered in difficult technical language. 94 A stokvel allows community members to use their own common language, which is less complex, and no bank interest rates are required. As a result, stokvels are much preferred by the poor and low-income earners in South Africa than the formal banks. 95

Lack of documentation and high number of informal businesses
The excessive documentation that is strictly required by banks to open bank accounts and/or access other financial products has resulted in the financial South Africa had small informal businesses in 2013. Most of these people who conduct unregistered businesses are unable to open basic bank accounts because of the numerous stringent bank requirements. 105 In this regard, it is submitted that the banks and other financial services providers should consider relaxing their rules and requirements for opening bank accounts, to promote financial inclusion of the poor and low-income earners in South Africa. There must be a fine balance between maintaining the measures to prevent money laundering and the financing of terrorist activities, and the promotion of financial inclusion for the poor and low-income earners.

Lack of a specific and adequate statutory regulatory framework for financial inclusion
There is no specific statute that regulates and promotes financial inclusion for the poor and low-income earners in South Africa. Put differently, the NCA, the CPA, the FICA (Financial Intelligence Centre Act) and the FSRA do not specifically provide for the promotion of financial inclusion for the poor and lowincome earners in South Africa. This haphazard approach could have increased the financial exclusion of the poor and low-income earners in South Africa. Owing to this confusion, most of the poor and low-income earners have resorted to informal financial services providers, to their detriment and financial exclusion. Nonetheless, it is encouraging to note that the FSRA has, inter alia, introduced the Prudential Authority (PA) 106 and the FSCA 107 to regulate and supervise financial product providers and financial services providers so as to protect South Africa's financial customers, financial institutions and financial markets. For instance, both the PA 108 and the FSCA 109 are obliged to adopt relevant measures to promote financial inclusion in South Africa. The FSCA is further obliged to promote fair treatment of financial customers by financial institutions in South Africa. It is also required to provide financial consumers with financial education programs to promote financial literacy and financial inclusion in South Africa. 110 While these developments and efforts are commendable, there are no provisions in the FSRA that specifically promote financial inclusion of the poor and low-income earners in South Africa. Moreover, the FSRA does not clearly stipulate how the FSCA may promote financial inclusion for the poor and low-income earners in South Africa.

Uneven bank concentration
The South African banking sector has grown since 1994, and a number of banks and financial products have been introduced there to date. For instance, the distribution of automated teller machines (ATMs) has increased to a network of over 5,000 branches and nearly 30,000 ATMs have been installed in South Africa. 111 Despite this, most financial services providers and banking institutions are still concentrated in urban areas. Consequently, financial consumers in rural areas and other informal sectors struggle to access such financial services and products in their communities. Thus, despite the advent of mobile money, instant cash and other measures that were adopted to enhance financial inclusion, most people in rural areas and informal sectors are still largely excluded from accessing basic financial services and financial products in South Africa. Accordingly, it is submitted that there is an uneven balance and concentration of banks and other financial institutions in South Africa. 112 The aforesaid imbalance has indirectly increased the financial exclusion of the poor and low-income earners in South Africa. 113

RECOMMENDATIONS
South African banks should be properly regulated to ensure that they do not charge exorbitant bank fees. Thus, the current South African statutory regulatory enforcement framework for banks and financial products must be revamped in light of the plight of the poor and low-income earners, in order to carefully relax the requirements for opening bank accounts and/or accessing other basic financial services and products. This could encourage the poor and low-income earners to trust the formal banking sector in South Africa. The banks and other related financial institutions should carefully relax their requirements regarding relevant documentation for the poor and low-income earners without necessarily exposing other financial customers to risks such as fraud, financial terrorism and money laundering. Banks and other financial institutions should be encouraged to establish branches in rural and informal settlements to curb the current uneven bank concentration in the main South African towns and cities. The government, banks and other financial institutions should further develop and establish financial education and financial literacy programmes in rural and informal settlements to promote financial inclusion for the poor and low-income earners in South Africa. Lastly, it is submitted that policy makers should seriously consider enacting a specific and adequate statute for financial inclusion to combat the financial exclusion of the poor and low-income earners in South Africa.

CONCLUSION
As indicated in this article, South Africa has made commendable progress towards the promotion of financial inclusion in South Africa since 1994 to 111 Louis and Chartier "Financial inclusion in South Africa", above at note 5 at 179. date. For instance, the adoption of the NDP national goal to attain 90 per cent financial inclusion in South Africa by 2030 should be welcomed as a positive commitment on the part of the government to increase financial inclusion. 114 Furthermore, the recent enactment of the FSRA, which obliges the PA and the FSCA to promote financial inclusion, is another positive step. Nevertheless, unemployment, poverty, financial illiteracy, over-indebtedness, high bank fees, mistrust of the banking system, lack of relevant national identity documentation, and a poor legislative framework for financial inclusion have remained the main challenges to the full realization of financial inclusion in South Africa to date. Consequently, it is submitted that the government and other relevant stakeholders should consider adopting appropriate measures to combat poverty and unemployment in South Africa. This approach could promote financial inclusion of the poor and low-income earners in South Africa. Put differently, if the poor and low-income earners are empowered with well-paid jobs, they may end up using their salaries to open bank accounts and access other formal financial services. It is also submitted that the FSCA, the NCT, the NCC and the NCR should regularly conduct financial literacy and educational awareness programmes that are mainly aimed at promoting financial inclusion for the poor and low-income earners in all the rural areas and informal settlements of South Africa. This could equip and encourage financial consumers, especially the poor and low-income earners, to make well-informed financial decisions and curb over-indebtedness and financial exclusion. 115 Moreover, South African policy makers should consider revamping the banking regulation in order to curb high bank fees, reduce mistrust of the banking sector and prevent the recurrence of the mismanagement of banks as highlighted by the VBS scandal. Policy makers should further consider enacting a separate and specific statute to regulate financial inclusion with adequate provisions that discourage financial exclusion of the poor and low-income earners in South Africa. Lastly, the banks and related financial services providers should establish more branches in rural areas and informal settlements to encourage financial inclusion of the poor and lowincome earners in South Africa