A significant advancement in the digital transformation of South African financial services occurs as the Shyft Platform introduces share trading on the Johannesburg Stock Exchange (JSE). Image credit: SABC News
Historically, the Shyft platform has enabled clients to buy foreign exchange and use it to invest in foreign markets, particularly US and UK stocks. With this recent upgrade, users can now diversify their investments by investing in established South African companies listed on the JSE, such as Capitec, Sasol, and Anglo Ashanti, without the involvement of an equities dealer or fund manager.
Glynn Allen, the Shyft platform’s CEO, expressed enthusiasm about the launch, telling The Citizen that “We feel most people want to invest in known companies, and for a typical South African, investing in companies listed on the JSE has become more convenient.”
Since its introduction in 2017, Shyft has aimed to provide users with convenient and easy access to forex, digital wallets, and cross-border transfers. Allen emphasized that the platform’s stock exchange facility would operate transparently. “To trade on the stock exchange, there is a fee for every trade, around 0.4%. Fees are disclosed before a transaction is made, so users will always know what they are paying,” he explained.
The Shyft app is available to all, regardless of their bank, extending its services to those beyond Standard Bank clients. Individuals can invest in Amazon, Apple, Google, or US-listed exchange-traded funds (ETFs), among others, without intermediaries like equities dealers or fund managers. However, there is an age restriction: investors must be over 18 to invest in shares on the site, as legally required.
The launch is seen as a step towards greater financial literacy and access. The JSE has been one of the globe’s top-performing markets in recent years, and it is collaborating with Shyft to lower trading costs, facilitate greater access, and empower South Africans to take control of their financial futures.
Valdene Reddy of the JSE explained the necessity of this shift, saying, “The world is connected, and you can see South Africans wanting to build their wealth and create better opportunities for the future.” Reddy added that while other applications had provided exposure to stock trading for South Africans, Shyft’s minimalist nature and increasing awareness level will provide a better experience.
Investment experts, such as Everycent, have also recently provided investment advice in South Africa, including fixed-term savings, Tax-Free Savings Accounts (TFSAs), government bonds, exchange-traded funds (ETFs), and stockbroking accounts. With direct access to the JSE through the Shyft platform, users can now construct and diversify their portfolios with even more investment options.
The initiative is a significant leap in the digital transformation of South African financial services, enabling greater participation by citizens in local and global markets.
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