Hi there,

Value your privacy? Meta has once again teamed up with Ray-Bay to release a new version of their smart sunglasses that let you covertly photograph and record anyone, anywhere. Talk about hitting “the Mark,” though, as Zuck himself probably needs a pair of these after he got not 1 but 2 black eyes at jiu-jitsu training this weekend.

In this Open Letter:

• Smart money: An Open Banking revolution.
• Pricey lions, iPhone heat & public lawsuits.
• Savvy startup: 8 Steps for Product-Led Growth.
• What you outsource: The results are in.

TRENDING NOW

The Future of Banking is: Open

Strap in, folks! While the world is utterly obsessed with the sorcery of blockchain and regulating the wild, wild west of crypto, let's not forget that we can still use our good ol' traditional banking system to cook up some transformative innovations.

Take Apple in the UK, for instance. Last week, Apple soft-launched a feature on the iPhone Wallet app that utilised a special function in the UK’s banking framework that lets the app show users the balances on all their cards, while they’re making a purchase.

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Obviously, a lot of people loved it. This begs the question of why they can’t do it everywhere. And the answer is that the UK made it possible by creating what’s called an Open Banking framework.

Open what now?

Open Banking is when the financial industry, including regulators, get together and make it possible for third-party FSPs to access financial data and services that only banks normally have access to – like your account balances – typically via API.

While a lot of FinTechs have been pushing for more access since the early 2000s (when mainly banks offered online banking services), the big shift came with the introduction of PSD2 in Europe in 2016 – a set of regulatory standards for payment services (including 3rd party ones). This led to the UK ordering its banks to make APIs available to third-party providers in 2018.

And this led to similar initiatives in Australia, Canada, Singapore and, to some extent, it’s starting here in SA, too…

Inside open banking

The options are insane. Think what 22Seven or business accounting software such as Xero or Sage could do if they could (with your consent) interact on your behalf in your Internet banking. Budget apps, auto payments, automatic savings when you have extra money – the works.

Even Ozow’s workaround for an “instant EFT” using Yodlee to log into your bank account and act on your behalf will be much better if can offer this via an official bank API. If anything, it’ll get more people to use official channels, while unlocking huge value for the user.

But not all of these applications will be equally loved by front-end users, though. The government could then also use a version of this to better track you and make sure you pay SARS what they’re due. In fact, there’s currently talk about SARS implementing automated, real-time VAT calculation.

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Local trailblazers

Investec did not only go Open Banking but probably a step further in releasing programmable banking. Want to create certain rules on how your card can work? Well, you basically plug into their API and unlock the ability to control your card’s features and functions – down to setting custom limits, transaction rules and behaviours, and even custom budgeting and notifications. A tinkerer software developer’s dream.

Then there is a startup that’s positioning itself well to capitalise on the eventual adoption of Open Banking: Stitch. Using APIs, automation and other tools, Stitch is literally stitching together the complex world of the flow of funds in modern organisations.

Oh, and if you want to see which SA banks offer these abilities, you can track our banks’ open API progress here.

Exciting developments and the time for this to go mainstream might be closer than we all think. We are watching this space…

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OVER TO YOU

Keen on Open Banking?

Vote to see what others say...

• 😡 Hell no
• 🧐 I don’t do my own banking
• ₿ IDC, crypto is the future of “France”
• 🦾 Can’t wait to hook up apps and never do banking again
• 🛋️ I store cash in my couch – like a president

Login or Subscribe to participate in polls.

IN SHORT

💰 Big moves. Telemedia, a subsidiary of Rex Trueform, has just bought a 35% stake in ITV Africa, an automated sports coverage company using and distributing AI tech products for school sports broadcasts and streaming services. Interestingly enough Rex Trueform also owns retail chain Queenspark and a minority interest in SA Water Works.

🐛 A Worm in the Apple. If you’ve wondered why your new R20’000+ iPhone 15 gets hot while you’re scrolling Instagram in an Uber, you’re not alone. Apple has identified “a few issues” that make their latest iPhone overheat including a bug in iOS 17. When Apple said the new iPhone was gonna be hot, we don't think that’s what they meant.

🥊 Stepping into the Ring. eMedia (the cats who own Openview, eTV, eNCA etc.) took out a full-page newspaper ad to announce legal proceedings against MultiChoice for the RWC broadcasting rights shenanigans between SuperSport and the SABC that left Openview out in the cold.

🦁 Pricey Lions. Africa’s wild lions have disappeared from 92% of their historic stomping grounds – about 25 countries all told, according to a study led by Oxford University and the Endangered Wildlife Trust (EWT). Fear not though, we’re pumping a cool $3 billion per year into conserving what’s left of Africa’s lions.

💨 Written in the Stars. Well, it was inevitable. As loadshedding continues to continue, looks like 4 of Eskom’s 15 coal-fired power stations are breaching government emissions regulations – Matimba, Matla, Kendal, and Kriel, 2 of which were emitting more than double the permitted limit of particulate matter.

❗ Pro Garage Sale. Ever wondered what big retailers do with the excess stock they struggle to move? Looks like Game’s got a solution with its non-branded store called ”The Last Chance Store”. It’s opened right next door to the Game store in Fourways Mall with up to 60% off goods.

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BUILDER’S CORNER

8 Steps for Product-Led Growth

You’ve got a product – awesome! Now, how do you grow sustainably? Because we don’t all have a never-ending supply of ready cash to feed a growing startup…

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We took some inspiration from Jaryd Hermann, a former SA founder turned product specialist based in New York. He has an awesome newsletter you should totally check out called How They Grow. He recently covered Product-Led Growth and its gold. The PLG movement revolves around the idea that the product itself, rather than traditional sales and marketing efforts, drives customer acquisition and retention.

The teams behind a number of successful products swear by PLG, including:

• Slack – the freemium model, coupled with easy onboarding and good word-of-mouth among creative agencies soon made it a top player in workplace communication.
• Zoom – despite it not being a unique product, Zoom offering free access to businesses and schools at the right time during the pandemic made it a household name.
• Notion – known for its community-based building model, it should be no surprise they have massive word of mouth and referrals.

It’s much the same with Airtable, Figma and Trello.

PLG Steps to Growth

1. Core Problem Validation
Does this help me solve their problem?

At the core of product-led growth is the fundamental question of whether your product effectively solves the user's problem. To make this happen: Ensure that your product genuinely addresses the user's problem and provides a solution. Then, communicate that well in your comms with others.

2. Help Them Make a Decision
What information do users need to decide?

Once users get what your product does, they need the best info to know if it's for them. For this, you need a comprehensive product page with detailed features, transparent pricing, social proof (e.g., testimonials, case studies), and emphasis on what differentiates your product. Keep that info updated.

3. Remove Friction
How easy it is to try?

A smooth onboarding process is vital. Reduce the number of steps required to start, and give people a low-risk, high-value way to trial your product.

4. Value Discovery
How easy is it to learn to use?

Once users are in, they need to quickly discover the value your product provides. Develop intuitive onboarding tutorials and educational content to help users learn to use your product effectively.

5. Time to First Aha!
How quickly do users unlock value?

Accelerating the time it takes for users to experience that "aha" moment, where they realise your product's true value, is vital. Identify key actions that lead to the "aha" moment and optimise the user interface to guide users toward them quickly.

6. Repeatable Value
How often do users get value?

Ensuring that users consistently and repeatedly get value from your product is what drives long-term engagement. Continuously get feedback and improve your product based on it to build a loyal user base.

7. Monetisation
How well does the product monetise?

While PLG focuses on delivering value, monetisation strategies are crucial. Implement flexible pricing, analyse user behaviours, and adjust pricing strategies to maximise revenue.

8. Get the Flywheel Going
How can users bring in more users?

Mechanisms within the product itself that encourage referrals and sharing can lead to a self-sustaining growth cycle. Create referral and advocacy programs, offer rewards for successful referrals, and make it easy for users to invite others.

Got a low-cost growth strategy that’s worked well for you? Hit reply and let us know…

THE RESULTS

Last week, we asked to what extent you take part in the access economy. And quite a few of us (40%) are pretty actively outsourcing ownership…

🟨🟨🟨🟨⬜️⬜️ 📄 Nope, I own everything (30%)
🟨⬜️⬜️⬜️⬜️⬜️ 🚙 Maybe rent a car now and then (10%)
🟨⬜️⬜️⬜️⬜️⬜️ 🏠 Choose to rent the house (13%)
🟩🟩🟩🟩🟩🟩 📱 Uber/Bolt, Airbnb/Lekkeslaap – the works (40%)
⬜️⬜️⬜️⬜️⬜️⬜️ 💻 I’m reading this email on a rented device (3%)