Given the role of the financial sector in the economy, its transformation is utterly crucial to radical structural economic transformation in SA.

The SACP has long realised this and launched its Financial Sector Campaign in 1999-2000. Consequently, the Financial Sector Summit was convened in 2002. The Financial Sector Charter was developed by mid-2000s.

The Mzansi bank account was created to give the poor and low-income earners access to banking services.

Through its regulatory achievements the campaign lessened the effect of the 2008 financial and economic crisis on our country.

More recently, the ANC-led government has begun the biggest overhaul of the financial sector since the 1920s through the so-called "Twin Peaks" model. This was necessary because of the disproportionate effect of the 2008 financial and economic crisis on poorer and low-income earners.

The Twin Peaks model shifts the regulatory system from a "light-touch" approach to more intrusive and effective regulation of the financial sector. It places equal focus on prudential and market conduct supervision by creating two strong regulatory structures.

There is a Prudential Authority (PA) to strengthen the soundness of financial institutions and a Financial Sector Conduct Authority (FSCA) to better protect customers and ensure that they are treated fairly by financial institutions.

The model also provides for a streamlined system of licensing, supervision, enforcement, customer complaints (including through ombuds), appeal mechanisms and customer advice and education across the financial sector.

The FSCA was established in April 2018. It is far more powerful than the Financial Services Board it replaced. The FSCA was created to address problems that have been identified in retail banking, credit, insurance, and the retirement and investment fund industries.

The ANC-led government has planned to also introduce the Conduct of Financial Institutions (COFI) Bill to strengthen the regulation of how financial institutions treat their customers.

The Bill will focus on protecting customers, promoting financial inclusion, encouraging competition and further transforming the financial sector. It will give legislative effect to the Treating Customers Fairly principles.

Parliament has also passed a Bill in March for the licensing of the Postbank.

It's important to eliminate financial exploitation. This should include a radical reduction of banking services fees including the exorbitant interest rates on mortgage bonds.

The financial sector is too concentrated. The big four banks have over 80% of the banking market. Black and women ownership of financial institutions overall is too low, as is black and women representation in the boards and top management.

The creation of digital banks has opened up the space for more black and women ownership of banks and government needs to do more to encourage this. The importance of robust support for the development of worker-controlled and community co-operative banks sector cannot be overemphasised!

The long overdue second Financi al Sector Summit should be convened as a matter of urgency after the May 8 general election.

*Mashile is SACP national spokesperson