Tag: DigitalBanking

For years, banks have modernised around channels. Mobile apps have improved. Onboarding has become faster. Customer engagement has also become more personalised. These improvements matter because customers experience them daily. However, a more difficult shift is now underway.

The fines scam. The South African Revenue Service (SARS) refund. The parcel that needs clearing. If you have a South African cellphone number, you have likely encountered all three. Fraud has become part of the background noise of digital life. Consequently, most people have developed a reflexive response: delete, ignore and move on. However, a more difficult question now confronts banks, fintechs and payment platforms.

For many people, the word credit evokes negative feelings because they associate it with debt risk. However, when we analyse its macroeconomic role, we must draw a clear distinction. We must distinguish between lending for general consumption and lending for a specific, productive purpose. The first approach remains broad and unfocused. As a result, it often produces the burdensome outcomes that fuel fear. The second approach offers a more responsible alternative.

Digital and mobile-first banking has changed our lives for the better. However, it has exposed consumers and institutions to increasingly complex financial crime threats. Digital banking fraud now represents one of the fastest-growing risk categories in South Africa.