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Transferability Of South African Bottom-Of-The-Pyramid Financial Business Model Innovations to The German Banking Sector

  • Jun 16, 2026
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Abstract Book of the 11th International Conference on Applied Research in Management, Business and Economics

Year: 2026

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Transferability Of South African Bottom-Of-The-Pyramid Financial Business Model Innovations to The German Banking Sector

Prof. Jacobus Jonker, Me Emily Gugal, Prof Kai-Uwe Wellner

ABSTRACT:

This paper explores how innovative financial business models from South Africa’s Bottom-of -the Pyramid (BOP) market can influence and inform strategic thinking and innovation within Germany’s mature banking sector.
The research, is guided by the following central question: How can the innovation strategies and business model mechanisms developed under resource constraints in South Africa’s Bottom-of-the-Pyramid (BoP) financial sector offer transferable insights for enhancing inclusive financial innovation in Germany’s established banking environment?
To address the research question, the research adopts a qualitative multiple-case study methodology analysing two relevant cases in the South African banking sector, Capitec Bank and Yoco, to determine applicable innovation strategies that might be applicable for the German Banking Sector. These mechanisms are subsequently assessed for transferability to the German context using the CAGE Distance Framework.
The findings shows that innovation born from necessity in South Africa´s BoP market can generate applicable strategic principles such as radical simplification, cost-efficient hybrid distribution, and ecosystem-based service models – that hold significant relevance for German financial incumbents, FinTechs and new entrants. The objective is not to suggest that German institutions should mimic South African models, but rather that they should adopt the underlying frugal innovation mindset to solve german challenges in a new way.

Keywords: Bottom-Of-The-Pyramid, Financial Inclusion, Frugal Innovation, Reverse Innovation, Banking Transformation