The Organisation Undoing Tax Abuse (Outa) claims that companies contracted by the National Student Financial Aid Scheme (NSFAS) to pay allowances directly into students’ bank accounts are not registered financial service providers and relatively new firms with very little proof of experience as fintech companies.
Outa’s Rudie Heyneke says, “We could not find any proof that they are in alliance or have a sponsor bank so that they can operate as payment providers. And that’s a serious question, these companies are moving more than a billion rand a month.”
“Surely they should be regulated and that is the issue we have with their experience and with their means of being a financial service provider.”
Below is the full interview: