At the centre of this shift is Darren Bak, Head of Intelligent Data at Synthesis, who says it plainly: “We’ve watched the banking space evolve. We’ve grown with banks — and helped them grow in return.”

Traditional banks were once protected by regulation and scale. But today, they’re up against fast, digital-first challengers and customers who expect more — and compare their banking experiences not with other banks, but with Apple and Google.

Tech Giants Set the Pace

Apple Pay works because it’s invisible. Secure, seamless, and simple. Google, meanwhile, is going further — pushing into Agentic AI. At its recent I/O developer conference, Google showed how AI can guide users through product discovery and payment in real time. No standalone banking app needed — just search, click, and pay, all under AI supervision.

This isn’t just convenience. It’s a warning shot to legacy banks: Innovate or be outpaced.

Banks Need More Than Co-Pilots

While many institutions are still experimenting with chatbots and AI co-pilots, Bak believes the real power lies in domain-specific AI agents. “These agents,” he explains, “don’t just generate text. They solve specific, high-value banking problems using deeply contextual data.”

But there’s a catch: AI is only as smart as the data it feeds on. And in banking, data can’t just be available — it needs to be secure, structured, and ready to move in milliseconds.

That’s where Synthesis shines.

Infrastructure That Matters

Synthesis, the recipient of the AWS GenAI Prize of Excellence Award and voted the preferred software development company in South Africa for large business projects, has built resilient, distributed systems that prioritise data sovereignty, security, and scale. Its AI Launchpad platform allows banks to deploy advanced AI safely — with embedded security, real-time monitoring, automation, and cost controls that keep the CFO happy.

In high-stakes use cases like fraud detection, timing is everything. “Milliseconds matter,” says Bak. “And that’s the difference between stopping a breach or explaining one.”

Real-World Proof

If you want a glimpse into what’s possible, look no further than Vitality Group. With over 60 million life years of data, 4+ petabytes of behaviour-linked records, and 5+ billion device readings a year, they’re setting the global benchmark for AI in insurance. And they’re doing it from here.

“South African engineers are world-class,” says Bak. “We’re not behind. The only thing slowing us down is outdated systems and data silos.”

Start Smart, Scale Fast

So how should banks respond? According to Bak, the approach is simple:
“Think big, start small, and get to value fast.”

This means identifying high-impact use cases, building foundational data platforms, and delivering quick wins. One area where Synthesis has seen major traction: customer personalisation. Through rich customer data platforms, banks can serve up real-time nudges, contextual product offers, and frictionless experiences that actually reflect the customer journey.

The Stakes Have Changed

Switching banks is now easier than ever. Loyalty isn’t a given — it’s earned through smarter, faster, more personalised service. If banks want to keep their customers (let alone attract new ones), they need to stop reacting and start building.

The post We Built the Bank of the Future: Darren Bak appeared first on Synthesis.

As cyber threats grow in complexity alongside technological advancement, Synthesis leads the charge in securing the digital financial landscape.By leveraging Thales Payshield hardware security modules (HSMs), the industry benchmark for payment protection, the company ensures that sensitive financial data remains secure and compliant with PCI standards. Their Keystone solution abstracts the complexity of cryptography, enabling developers to manage secure PINs with ease. Looking ahead, Synthesis is already preparing for the quantum computing era, investing in post-quantum cryptography and crypto agility to future-proof banking infrastructure.

This commitment to security seamlessly extends into the cloud, where Synthesis empowers banks to scale with confidence. Their cloud-native architectures, built on platforms such as AWS, Google Cloud and Kubernetes, support real-time data flow, automated alerts, and resilient disaster recovery. By aligning with regulatory frameworks such as PCI DSS, POPIA, and GDPR, Synthesis ensures that cloud adoption enhances data sovereignty and security. Their successful implementations with BankservAfrica and the Top Tier Banks demonstrate their ability to deliver robust, scalable solutions tailored to the financial sector.

By combining advanced analytics, AI, and cloud-native data engineering, the team helps banks harness the power of their data through smarter decision-making, real-time insights, and operational efficiency. Intelligent data solutions, ranging from modern data platforms to machine learning for fraud detection, are built with a deep understanding of financial services and compliance.

This innovation extends into RegTech, where Synthesis transforms regulatory compliance from a burden into a strategic advantage. Their suite of tools, including TXstream and the FinSurv Suite, automates data ingestion, validation, and submission across jurisdictions, supporting compliance with SARS, HMRC, IRS, and SARB. With features such as real-time rule validation, centralised dashboards, and AI-enhanced anomaly detection, Synthesis enables banks to meet complex regulatory demands with precision and agility. Success stories from three popular banks in South Africa highlight the scalability and reliability of these solutions.

At the heart of this transformation is the modernisation of payments infrastructure. Synthesis has developed modular, API-driven platforms that support ISO 20022 and real-time processing, reducing operational overhead and enabling instant transaction visibility. Security is embedded at every layer, from cloud-native services to PCI compliance. Their collaboration with a well-known bank on PayShap, achieving sub-5-second transaction times, exemplifies their dedication to both speed and security. As the industry shifts toward tokenisation, invisible payments, and AI-driven analytics, Synthesis continues to innovate, ensuring banks stay ahead of the curve.

Completing this digital transformation journey is Halo Dot, Synthesis’s SoftPOS solution that redefines in-person payments. By turning smartphones into secure payment terminals, Halo Dot eliminates the need for traditional hardware, aligning with sustainability goals and accelerating merchant onboarding. Certified against PCI MPoC and PCI DSS 4.0, it offers features such as attestation monitoring, digital wallet support, and offline capabilities, making it ideal for high-volume sectors such as retail, transit, and events. The upcoming Halo Dot Adaptor will give banks full control over their SoftPOS infrastructure, enhancing both autonomy and operational efficiency.

Synthesis’s evolution mirrors the broader transformation of the banking industry. From cryptographic resilience and cloud scalability to real-time payments and intelligent data compliance, their solutions are designed not just to meet today’s challenges, but to anticipate tomorrow’s.

As trends like AI-driven fraud detection, omnichannel payments, and programmable finance gain momentum, Synthesis remains a trusted partner for banks navigating the digital frontier. Their holistic approach, grounded in deep industry knowledge and a commitment to innovation, ensures that banks are not only compliant and secure but also agile and future ready.

The post From Legacy to Cloud: Synthesis Architects the Digital Core of Modern Banking appeared first on Synthesis.

Absolutely.

Although South Africa has made advances towards moving with innovation and technology, the economy still relies heavily on cash.

The concept of cash has always been tangible. It is held, transferred, and weighed, but how many people carry around cash these days?

Synthesis Software Technologies, in partnership with Mambu and Amazon Web Services (AWS), hosted the Payments Round Table 2.0 at the Twelve Apostles Hotel in Cape Town this month. The event brought together key decision-makers from FinTech, retail, insurance, and banking sectors to discuss the future of payment modernisation in South Africa.

Moderated by Howard Feldman, the round table aimed to address the challenges and opportunities presented by payment technology and innovation in a predominantly cash-based economy. Despite the availability of digital payment methods, many low-income consumers continue to rely on cash, necessitating solutions that cater to the needs of the economy.

Modernizing Payments in South Africa

The South African Reserve Bank (SARB) has invested approximately six billion Rand in payment technologies for the public good to drive collaboration and healthy competition across key economic players. The new National Payment System (NPS) bill, closely linked to SARB’s Vision 2030, supports creation a world-class national payment utility that meets both domestic and international requirements. This bill provides a legal framework for the management, administration, operation, regulation, and supervision of payment, clearing, and settlement systems in South Africa.

The seven pillars of the Public Digital Payment Infrastructure presented by SARB Vision 2023 are highlighted below. Read more about SARB’s vision 2023.

Harsha Maloo, Head of Payments at Synthesis, highlighted the importance of financial inclusion, noting that while 80% of South Africans hold bank accounts, a significant portion remains financially excluded. Maloo presented the need for payment solutions that address the typical consumer behaviour of withdrawing cash immediately after receiving their salary.

Insights From Industry Leaders

Many households have a head who manages one account for the family. Money is deposited into an account, and technology is needed to manage the distribution of that money to other family members. Customers queue at ATMs to withdraw cash when they can withdraw cash from a retail shop and not pay bank charges for the withdrawal. A representative in the retail industry with over 700 stores across South Africa posed the questions:

“What services can retailers offer customers instead of cash in low-income and metro areas?” and “How do we look at a digital currency as a substitute for cash?”

Using a digital currency provides advantages to retailers; therefore, value propositions need to be established. Some advantages involve the saving of cash procurement and logistic fees. Retailers can be the front end of education to consumers on how to transact digitally and what is available. Many moving parts need to come together to create a platform that prioritises trust and security for consumers. To stop customers from using ATMs in the retail space, the cultural dynamics of consumer behaviour need to be considered.

Technological Innovations and Challenges

As a former executive at Solaris (a Mambu customer), Neil Capazorio, MD of ZAZU South Africa shared valuable insights from their experience working with both banks and fintech’s. They discussed the distinctions between legacy systems and third-generation technology stacks, emphasizing the transformative shift in mindset required to leverage modern solutions. Using Al and technology as enablers, ZAZU aims to address value propositions over time. Capazorio highlighted the importance of technology in simplifying the process of opening business accounts online and in real-time, thereby reducing compliance costs.

Alfred Mukudu, AWS Financial Services Go-To Market Leader, discussed AWS’s role in payment modernisation. AWS is supporting customers on platform modernisation, B2B payments, data and Al, fraud detection and prevention, real-time payments, and blockchain and digital currencies. Mukudu shared AWS’s commitment to removing technological blockers and accelerating the adoption of innovative payment solutions.

Regional and Sectoral Perspectives

Langa Mlalazi, Chief Technology Officer of Innbucks MicroBank in Zimbabwe, presented Innbucks’ innovative solution to address hyperinflation and frequent currency switches. Innbucks has created a wallet for transactions that substitutes cash, enabling rapid growth in transaction values and effectively managing high transactions per second (TPS). As part of its next phase of growth, Innbucks has partnered with leading cloud-native core platform Mambu to transform from a digital wallet solution to a fully integrated digital bank, supporting its continued expansion across Africa. Mlalazi emphasised the importance of creating a payments ecosystem that competes directly with cash. The discussion also highlighted the need for a unified African payments system to democratise different currencies, enabling seamless cross-border transfers across the continent, regardless of the local currency.

Addressing Consumer Behaviour and Trust

The round table discussion underscored several challenges and opportunities within the payment modernisation landscape.

A FinTech representative emphasised the need for banks to reduce charges and improve the usability of Payshap ID, which currently requires a banking app.

An insurance representative pointed out the anti-competitive nature of both traditional and new banks, advocating for a trusted and non-predatory ecosystem. They also noted the potential for FinTechs to offer more opportunities by reducing overhead and clearing charges and suggested that app messages could replace SMS costs.

Mlalazi stressed the importance of creating incentives for all stakeholders, while Mukudu mentioned that banks are not reluctant but face operational expenses that hinder their ability to reduce charges, suggesting partnerships between FinTechs and Banks.

Future Directions for Payments and Education

The biggest challenges identified include trust, education, value propositions for key players, profitability, culture, ecosystem awareness, traditional banks, regulation, adaptability, and transaction friction.

An insurance representative emphasised the need to start with the education system and the youth to ensure financial and digital literacy.

The broader perspective focused on solving societal problems and growing the economy in a way that benefits all stakeholders. Payments are an enabler to economic growth and should be seen as one as opposed to a revenue tool.

The post Creating Payment Ecosystem Awareness – Moving the Economy from Cash to Digital appeared first on Synthesis.

South African Reserve Bank’s recent report shows that cash is still the most prevalent payment method.

On the 10^th of October 2024, Synthesis, a leading software development company, invited Financial Institutions and FinTech’s to engage in an insightful discussion on the future of payments for South Africa. This round table consisted of leading CIO’s, Head of Payments, decision makers, and Payment Specialists across the Banking and Financial Services industry, where these individuals got the opportunity to engage directly with a representative of the South African Reserve Bank (SARB).

Moderated by Howard Feldman, the discussion addressed topics related to payment modernisation by tapping into Brazil and India’s real time payment journeys, and, addressing SARB’s vision for South Africa and Regulations.

What are other countries doing?

In Brazil, the real time payments system is Pix. “Pix is a payment method developed, regulated, and supervised by the Central Bank of Brazil that enables transactions to occur in less than 10 seconds, 24/7 including weekends and holidays. Pix allows for real time exchange of value between parties, enabling financial inclusion through digitalisation, entrepreneurship for small businesses, infrastructure cost reduction for financial institutions, risk management, and tax collection”, explains Fabio Cossini, AWS Business Development Leader FSI.

In India, there has been evident growth in real-time payments. “Unified Payments Interface (UPI) is an Indian instant payment system and protocol developed by the National Payments Corporation of India. The motivating factors for UPI adoption in commercial banks in India include access to merchant ecosystems, additional income sources, cost savings, and revenue-generating products”, explains Arun Ramprasadh Head of UPI at Juspay and Aditya Kulkarni, Head of Payment Aggregation Business at Juspay.

SARB and participants acknowledged that South Africa is behind the rest of the world.

Payment Modernisation Considering SARB’s 2030 Vision

Giving the country the ability to transact digitally, and a fair access to financial services to all South Africans irrespective of their demographics and living standard measure. SARB wants to make the exchange of digital payments equal to the exchange of physical cash. “For example, when transacting with cash, if an individual had to purchase an item from a merchant with R20, the transfer of the value of R20 is immediate to the merchant without deduction of any fee When making transfers digitally, an individual or the merchant would need to pay for bank charges/scheme fee that are additional to the R20 transfer they are already making. For the program to succeed and lead to economic benefits, the ecosystem will need to come together and play its roles effectively”, explains SARB Representative.

Some challenges in achieving this goal in South Africa include a lack of financial awareness, affordable fast payment services, alternatives to cash, and foundational capabilities e.g. digital financial identity, eKYC, competition, and innovation in payments.

“For the program to succeed and lead to economic benefits, the ecosystem will need to come together and play its roles effectively”, says Mellanie De Jager, Programme Delivery Director for the SARB’s Payments Ecosystem Modernisation Programme.

What are the barriers to the adoption of real-time payments?

Why is adoption so low?

Quoted directly from Bank Representatives.

Gender Parity

The South African gender parity is a challenge as a large portion of the female population that live in the rural areas and manage their households do not have the necessary education or are not aware of these payment methods, hence the reliance on physical payment methods.

Trust

Building trust with the consumer is important to aid in adoption. Education needs to come from the banks, preferably, because the trust of the consumer is generally with the banks.

Trust

Contact crime in South Africa is one of the biggest challenges and therefore, banks are looking for ways to use AI to track behavioural patterns as a form of tracking crime.

Research

Research on optimisation and UPI needs to be conducted to support the vision. Demonstration or registration drives are essential and will aid in adoption.

What should SARB and other regulators do to encourage innovation without creating more obstructions?

Quoted directly from Bank Representatives.

The consideration of volume and “free” transactions are really important. As much as banks would like to create this cost-free option for consumers, there is a cost to build and maintain the technical infrastructure to enable digital payments. This is the purpose of bank charges. If the bank charges are removed, the merchant/bank will suffer the cost in the ecosystem.

Given that the program is focused on a long-term goal, SARB should consider ways to assist banks with the short-term impact of the regulations and investment in consumer behaviour change. Banks have funded the penetration of digital apps to customers and build the infrastructure. The challenge that is faced with the new regulations is convincing investors who are commercial focused.

Partnerships with banks and FinTechs are forming to potentially meet regulation with innovation. This has resulted in collaboration and opportunities for cross selling, cross acquisitions, and launching new CVPs.

AWS partners with companies like Synthesis to solve the biggest pain points in the industry, as a hyper scaler and an AWS Premier Tier Status Partner. “The aim is to take care of the time to market and value, address how companies adopt payment technologies, modernise payment systems, identify what prevents customers from adapting payment technologies and rapid payments adoption, which is the big move to real-time payments”, says Alfred Mukudu, AWS Financial Services Go to Market Lead”.

What do participants expect from SARB to foster collaboration rather than division?

FinTech Innovation is looking to de-cash wallets, micro merchant, etc. It is easier for FinTech’s to plug into financial services ecosystems. The downward trend is happening, SARB needs to drive this without over regulating processes, unnecessarily increasing costs and creating a competitive environment. The new regulations have resulted in a lot of additional costs for banks.

Economics of the model needs to make sense for all participants. Immediate reality of the regulations (the co-existence of cash and cashless). Education and awareness is really important not only to educate the consumers but also the merchants (banks). Creating uniformity across banking apps that also speaks to user experience and making education /awareness simpler.

Response from SARB

SARB is trying to create a self-sovereign South Africa. Creating an alternative network, that is safe and secure which allows to broaden the payment ecosystem and enables market competition. This network will allow FinTechs and other designated players to participate in the clearing and settlement without needing specific sponsorship from banks.

SARB wants to create regulatory frameworks so that it makes it easier to comply and establish a public payments utility which can be used by ecosystem players to build new business models and innovative solutions on. Defining strategy and vision 2023+ for the banks will result in currency management to help with the supply chain.

SARB states that Physical cash is still more costly due to manufacturing, distribution, theft and supply chain costs. No advocation for cash is free, but it’s about user experience for consumers to make payments without additional costs and for consumers to adopt more to digital payment methods. SARB will make the initial investment towards central infrastructure to make the systems reliable and accessible.

Charging individuals for low value transactions, the adoption to digital/cashless will not progress as fast. We believe that the market will find ways to balance the cost of innovation. Educating and awareness would need to work very closely with the industry. Exploring various education options to educate the low-income areas on how to use these payment methods. SARB is also looking to provide a consistent User Interface (UI) and a simple platform for the enabler (Bank) to communicate to consumers that it is faster, cheaper, and easier.

What’s the dream?

The dream is shared across all players in the ecosystem, merchants (Banks), regulators (SARB) and FinTechs, to see payments in South Africa see success.

To see the digitalisation of payments grow through innovation.

“With power comes responsibility, the responsibility to make South Africa a powerhouse at a global stage. We need to do this by asking difficult questions, engaging with each other, working together, and advancing how we make payments for all South Africans”, says Harsha Maloo, Head of Payments Synthesis.

The post Is There A Real Desire To Remove Cash From Circulation? Leading Banks In South Africa Weigh In appeared first on Synthesis.