Fatgie Adams | Head | Credit Risk Solutions | TransUnion Africa | mail me |
April’s Financial Literacy Month provides an opportunity to reflect on progress. It also highlights where the next phase of financial inclusion must focus. While access remains foundational, the real challenge lies in outcomes. Specifically, credit must deliver sustainable and positive results for consumers.
Over the past decade, South Africa has expanded access to financial services. This progress has strengthened financial inclusion across the country. Today, our Industry Insights Report reflects a broader credit ecosystem. The report draws on data from nearly every active credit file in South Africa.
This expansion appears in the growth of active accounts across key credit products. For example, credit card accounts grew by 7.1% year-on-year in Q4 2025. At the same time, balances increased, and participation widened. Together, these trends reflect a shift. Financial inclusion has improved, and more South Africans now actively participate in the credit system.
From access to meaningful financial inclusion
Access alone is not enough. The next phase of financial inclusion must move beyond entry. It must focus on outcomes and long-term resilience. In other words, financial inclusion must evolve from access to empowerment.
For many consumers, early credit experiences remain transactional. These include store cards, personal loans, and short-term credit. Consumers often use these products to meet immediate needs. However, these products also introduce complexity. This is especially true in an environment with ongoing financial pressure.
Without proper tools, consumers struggle to manage this complexity. As a result, credit can shift from support to stress. This risk highlights a gap in financial inclusion.
Insights from the Q1 2026 Consumer Pulse Study provide further context. Consumer behaviour continues to evolve under pressure. Thirty-five percent of South Africans plan to use Buy Now, Pay Later products in the next year. This signals reliance on short-term credit. At the same time, 35% expect difficulty paying at least one bill or loan. This trend shows increasing pressure on household finances.
Industry data adds further depth. While delinquency has improved in some portfolios, risks remain. Consumer-level delinquency is spreading in certain segments. This is especially true in smaller, high-frequency credit categories. Therefore, financial inclusion without understanding can increase vulnerability.
From having credit to mastering it
At its best, credit enables opportunity. It supports mobility and smooths income volatility. It also helps consumers manage financial shocks. However, many consumers make decisions under constrained conditions. They often rely on short-term credit to manage daily expenses.
In this context, the difference between credit as a tool and a trap becomes clear. It does not depend on the product itself. Instead, it depends on how consumers use and understand it. This is where financial literacy becomes essential. It must function as an ongoing capability, not a once-off intervention. Financial Literacy Month reinforces this point. Education cannot remain separate from credit ecosystems.
As products become more digital and flexible, knowledge must evolve. Consumers need the skills to use credit responsibly. Therefore, financial literacy strengthens financial inclusion by bridging access and outcomes.
A shared responsibility for financial inclusion
Advancing financial inclusion requires collective effort. It cannot rest solely on consumers. Instead, the entire credit ecosystem must participate.
As access expands, lenders must prioritise sustainability. They must focus on affordability, transparency, and long-term outcomes. This approach strengthens financial inclusion at a systemic level.
Credit providers and bureaus also play a critical role. They must translate complex data into clear insights. This helps consumers understand not only access, but also responsible usage. In turn, this supports stronger financial inclusion outcomes.
Regulators must also contribute. They need to protect consumers while enabling innovation. At the same time, financial education must be integrated into the credit journey. It should appear at key decision points, not as a standalone initiative.
Designing for progression, not just participation
True financial inclusion goes beyond entry into the credit market. It depends on the ability to progress within it. Therefore, lenders must move beyond one-off approvals. They must adopt dynamic approaches that support ongoing financial health.
Recent data shows that lenders are already shifting strategies. They are refining affordability assessments and strengthening risk management. These changes support more sustainable financial inclusion.
There is also an opportunity to use data proactively. Lenders can identify early signs of financial distress. They can then intervene before problems escalate. At the same time, they can create pathways for consumers to access better financial products.
In this context, “quality credit” becomes the key measure of success. It focuses on long-term financial health. It also reflects the true goal of financial inclusion.
Why this matters now
South Africa’s credit market is entering a more stable phase. According to TransUnion, the market has moved beyond post-pandemic recovery. It now shows signs of stabilisation.
Several factors support this shift. These include steady inflation, favourable interest rates, and improved repayment behaviour. However, stability does not apply equally across all segments.
Growth in access now aligns with more cautious lending. Consumer behaviour is also evolving. Therefore, the system must balance expansion with sustainability. This balance remains central to financial inclusion.
The future of financial inclusion
Ultimately, the future of financial inclusion depends on outcomes. It must ensure that every consumer can navigate credit confidently. Consumers must also use credit responsibly and sustainably.
The conversation has shifted. The key question is no longer about access. Instead, it focuses on whether credit improves financial wellbeing. Financial inclusion succeeds only when it produces resilient consumers. These consumers must participate fully in the economy. They must also sustain their financial health over time.
