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Banking and financial services The JSE has opened an Exchange Hub in Cape Town.

SECTOR INSIGHT A Stellenbosch bank has expanded the Big Four to Five. • International banks are setting up app development hubs in Cape Town.


he finance and insurance sector contributes 10.9% to provincial GDP and grew at a rate of 6.4% between 2000 and 2013. Research done by banking group First National Bank notes how successful the Western Cape has been in attracting financial services companies of every sort. These range from asset managers to hedge funds, venture capitalists and insurers. The sector outperformed most other sectors according to the report, and further growth is anticipated (FNB Chartbook). The decision by the Johannesburg Stock Exchange (JSE) to open a JSE Exchange Hub in Cape Town confirms the city’s importance in the financial world. There are eight Cape Town-based companies in the Top 40 Index of the JSE: Capitec Bank, Mediclinic, Naspers, Woolworths, British American Tobacco, Remgro, Shoprite Holdings and Sanlam. The head offices of financial firms are dotted all over Cape Town. These include Old Mutual (a huge complex in Pinelands), Foord (also in Pinelands), Coronation (Newlands), Prudential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns in the province. Even the small rural town of Greyton is home WESTERN CAPE BUSINESS 2017


to Overberg Asset Management. Insurers such as Santam and Metropolitan Life are based in Bellville. Most of the banking groups also offer a range of services such as asset management or investment advice. Financial services group Old Mutual (which has a 54% stakeholder in Nedbank) is set to create four stand-alone businesses out of the Old Mutual Group. This will allow the UK-based wealth management business and the New York-based asset managers to be free of linkages to the rand, while the South African businesses, Nedbank and Old Mutual Emerging Markets, can focus on their specialities. Fintech is the new buzz word in the world of banking. Barclays has established a worldwide organisation to promote the latest thinking in app development. Rise has seven outlets around the world, including one in Woodstock in Cape Town. A

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