A ‘Social Justice’ Movement in the Banking Industry? Banking, Competition and Financial Inclusion in South Africa with Insights from Zimbabwe

Abstract

While social justice conversations seem to have been fading in philosophical arenas over the last decade, there remain legitimate reasons to keep them alive. In law, social justice debates have, by and large, been confined to human rights corridors. However, as will be argued in this chapter, social justice is about the organisation of society and the realisation of equality in material conditions. These aspirations cannot be realised if members of society are limited by ‘markets’ and ‘banking institutions. Therefore, there is a place for social justice within the banking sector, and more broadly, in other economic fields (including their regulation too). This chapter drives financial inclusion as a concept to advance this agenda. Financial inclusion seeks to expand the availability and equality of access for banking products. Safe to say, financial inclusion is about (social) justice in relation to banking products. Once established, this paper then explores the impact of competition in the banking industry in South Africa on financial inclusion. The paper finds, using a review of the literature and existing secondary data from empirical studies, that there is a definite correlation between an increase in competition in the industry and improved access and product ranges for consumers, as competitors attempt to garner new clients and markets. Oddly enough, competition law and financial inclusion are deemed to be strange bedfellows, sharing a common interest in transformation. The chapter recommends that further deliberate efforts, through law and policy, be taken to enforce competition within the banking sector and advocate for better financial inclusion.