FirstRand is positioning itself for significant growth following its acquisition of a 20% stake in Optasia, a Dubai-based fintech giant that recently listed on the JSE. This move underscores the bank’s commitment to expanding its presence in digital financial services and tapping into underserved markets.
In an interview with Business Day TV, Robert Towell of Sasfin Wealth highlighted FirstRand as his top stock pick. Towell noted that South African banks, in general, present attractive investment opportunities, offering dividend yields of approximately 6%. Despite a minor setback from a UK regulatory fine related to its motor finance division, Sasfin Wealth remains bullish on FirstRand’s prospects.
Towell emphasized that FirstRand—owner of FNB, RMB, WesBank, and other subsidiaries—has considerable room to grow in the digital banking space. The recent Optasia investment is a strategic step toward that goal.
Why Optasia Matters
Optasia operates across emerging markets, delivering fintech solutions to millions of underbanked and unbanked consumers. The company partners with major telecom and financial players, including MTN, Vodacom, and Standard Bank. Its platform addresses a critical gap: enabling access to microloans and credit for individuals who struggle to obtain traditional banking products.
FirstRand described the Optasia partnership as an opportunity to leverage a proven fintech model that uses innovative mechanisms—such as pre-scoring customers, processing microloans at scale, and employing mobile data sales for credit collection. These capabilities allow Optasia to serve millions across 38 countries in Africa, the Middle East, and Asia.
Through this collaboration, FNB aims to accelerate its growth strategy in markets where traditional banking penetration remains low. “FirstRand is not going to stand still and let incumbents dominate the sector. South Africa remains an attractive investment destination, and we like FirstRand at these levels,” Towell said. The bank currently trades at a P/E ratio of around 10.5 and offers a dividend yield of 5.4%.
Direct Investment Opportunity: Optasia
While FirstRand stands to benefit from its stake in Optasia, South African investors can also consider investing directly in Optasia following its recent public offering. Keagan Higgins, Investment Analyst at Anchor Capital, selected Optasia as his stock pick for 2026.
According to Higgins, Optasia’s growth potential is immense. The company estimates a reach of approximately 860 million underserved mobile network users through its telecom partnerships, yet only 120 million are active today. This gap signals a substantial runway for expansion as Optasia deepens penetration within its existing footprint.
Traditional banks often struggle to price and distribute small-ticket credit efficiently. Optasia bridges this gap using mobile channels and a robust dataset that strengthens its credit models—a competitive advantage that is difficult for new entrants to replicate.
Momentum is strong: management projects 50% revenue growth in FY25 and 25% in FY26, driven by increased adoption of micro-financing products and geographic expansion. FY25 is expected to mark a turning point, with early indicators showing accelerating volumes and an improved product mix.
The next growth phase will focus on deepening penetration in Africa while leveraging opportunities in South and Southeast Asia—regions characterized by large underbanked populations, high mobile penetration, and strong telecom engagement.
Although regulatory risks exist, Higgins believes Optasia’s embedded distribution model and adaptive credit engine mitigate these challenges. Notably, the stock trades at a forward P/E ratio of 17, which appears undervalued given management’s medium-term growth outlook. The strategic stake acquired by FirstRand further validates Optasia’s model and adds long-term optionality.
