Have you ever been to a braai a typical South African barbeque where everyone has to bring a dish? Typically, people prepare what they think will appeal to everyone. What this usually results in is a selection of familiar favourites, with nobody making any bold moves - that is, until the 'friend of a friend' brings the potato salad with a crazy twist. It instantly becomes all anyone can talk about, and even though there was already a potato salad on the table, this firm favourite remains untouched. People have gravitated to the bold new offering.
A little while back, the financial news in South Africa was dominated by the announcement that Revolut, Europe's largest digital bank, was eyeing South Africa as a market for expansion. Since this spicy news dropped, there has been considerable worry that all the traditional banks in South Africa are now under threat.
I have a different opinion. There were similar sentiments when TYME and Bank Zero started, and while they are doing well, they haven't taken the 'Big 5' - Standard Bank, FirstRand, Absa, Nedbank, and Capitec - down, or even made a significant dent in their earnings.
I have worked with executives at South Africa's big traditional banks for nearly two decades, and for the most part, they always find a way to co-exist with new market entrants.
In my opinion, Revolut's potential launch in South Africa isn't a culinary explosion, but a subtle shift in the banking menu. It does, however, prompt a critical question: who's poised to adapt, and who risks being left with a stale offering? It's not about a total industry shake-up, but a targeted refinement of the digital experience.