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South Africa’s Credit Market Expanded During Q2 2025 Amid Eased Interest Rates and Shifting Consumer Risk

Location: Business
  • Millennial consumers drove significant new credit card growth, although new card limits dropped significantly
  • Vehicle asset finance growth trend continued, with more than two thirds of loans originated by Gen Z and Millennial consumers
  • Eased interest rates drove year-over-year growth in home loan originations, although affordability pressures may be impacting performance

South Africans responded to a more favourable interest rate environment during Q2 2025, leading to increased new account originations across most consumer credit products, particularly for credit cards and vehicle finance. Home loan activity also showed signs of recovery, as consumers felt more confident in committing to longer-term credit obligations. Retail revolving loans were the exception, with origination volumes declining despite growth in balances.

These are some of the findings of TransUnion’s Q2 2025 South Africa Industry Insights Report, which also found that South Africans were managing their credit better, as delinquencies improved across most consumer credit products during the quarter.

Credit Card Market Continued Upward Trajectory

Credit card originations increased by a robust 36.5% year-over-year (YoY), underscoring this product’s relevance as a flexible financial tool for consumers seeking convenience and/or liquidity in what remains a challenging economic environment. Millennials (born 1980 to 1994) drove this growth, with originations in this cohort making up 47.6% of all originations in the period.

Lenders seeking to expand market share continued to extend credit to consumers in higher-risk prime and below risk tiers[1], with originations to subprime consumers increased by 49.2% YoY. They balanced this growth among higher-risk borrowers with smaller credit limits. The average credit limit on new credit cards decreased by 19.5% YoY during the quarter.

Delinquency trends showed mixed results. Credit card balance-level delinquency rose slightly to 18.1%, up 13 basis points (bps) YoY, indicating a marginal increase in overdue balances. In contrast, account-level delinquency rates declined by 32 bps YoY to 12.1%. This decline in account-level delinquency suggests that while some consumers accumulated larger balances, many were able to make payments to keep their accounts active.

“The latest credit cards trends reflect strategic credit use and disciplined repayment behaviour among a financially stretched borrower base,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “The combination of rising origination volumes and shrinking new credit lines suggests that lenders are working to balance growth with prudent risk management. Lenders may need to refine their segmentation strategies, enhance early warning systems, and tailor credit line management to sustain portfolio health while supporting customers’ financial needs.”

Vehicle Asset Finance Shows Continued Growth

Vehicle asset finance originations increased by 21.0% YoY in Q2 2025, and average new loan amounts increased by 3.5% while the number of active accounts increased by 2.1% YoY. Growth was mainly driven by Gen Z (aged 18 to 28) and Millennial (aged 29 to 44) consumers who accounted for 64.3% of originations.

Outstanding balances grew by 7.6% YoY, and average balances have increased by more than 30% over the last five years, reflecting both higher vehicle prices and a sustained trend toward longer loan terms, which slows loan balance paydown rates. Loan terms granted during Q2 2025 averaged 74 months, up from 73 months in Q2 2024 and 72 months in Q2 2023. Longer loan terms, while slowing balance paydown, result in lower monthly payment amounts, which help consumers manage monthly cash flow in a high-cost environment.

Younger consumers are beginning to look for more ways to enter the vehicle market, including taking advantage of more cost-effective imported vehicles. However, 65% of vehicle finance originations were made by repeat buyers during Q2 2025, suggesting that access to vehicle finance remains limited for new entrants. At the same time, lenders need to be mindful of rising risk levels: in the second quarter of 2025, 44% of new-to-vehicle finance consumers fell into the subprime risk tier. These trends highlight the need for lenders to design credit products that support younger buyers, while ensuring responsible credit practices are upheld.

Account-level delinquencies for vehicle asset finance improved by 24 bps YoY to 5.1%, demonstrating that repayment behaviour for this product remained relatively stable, and that the overall risk profile of this portfolio is improving.

“For vehicle finance lenders, the rise in originations alongside modest growth in loan amounts suggests an opportunity to support demand while maintaining portfolio discipline,” said Hatea. “The improvement in delinquency rates is encouraging, but ongoing monitoring will be essential as economic recovery remains uneven. Vehicle finance lenders may benefit from refining pricing models, reassessing vehicle segmentation strategies, and balancing growth with prudent risk management.”

Home Loan Market Responds Positively to Eased Interest Rates

Lower interest rates, moderating inflation and improved real wage growth led to stronger consumer sentiment, giving lenders an opportunity to re-engage with consumers seeking home loans. New home loan account originations increased by 6.8% YoY during Q2 2025, showing early signs of recovery after declines in growth over previous quarters.

Favourable interest rate conditions and enhanced credit access drove broader access to home ownership this quarter, with 51% of home loans granted to individuals taking a home loan for the first time — the highest proportion in over five years. Among these, 56% were Millennials and 24% were Gen Z.

Delinquency trends showed mild deterioration, with the account-level delinquency rate increased by 29 bps to 7.5%. These movements suggest that while the market is stabilising, repayment stress remains a concern.

“These trends indicate a home loan market that is stabilising, but not without risk,” said Hatea. “For home loan lenders, the uptick in originations presents an opportunity to re-engage with the market, but rising delinquency rates underscore the need for vigilance. Portfolio strategies may need to shift toward enhanced consumer profile assessments, proactive risk monitoring, and targeted engagement with borrowers showing early signs of strain. As the market navigates this transitional phase, balancing growth with resilience will be key.”

 Table 1: Key South African Credit Market Metrics (Q2 2025 vs Q2 2024)

Product

YoY origination growth

Serious account-level delinquency rate*

YoY basis points (bps) change in delinquency rate
Credit card

36.5%

12.1%

-32 bps
Bank personal loan

2.2%

25.9%

-72 bps
Non-bank personal loan

18.8%

41.3%

256 bps
Clothing accounts

6.5%

25.9%

-265 bps
Retail instalment

21.4%

25.5%

-238 bps
Retail revolving

-6.3%

14.9%

-251 bps
Home loans

6.8%

7.5%

29 bps
Vehicle finance

21.0%

5.1%

-24 bps

 *Account-level serious delinquency rate, measured as a percentage of accounts three or more months in arrears

[1] Scores are based on TransUnion’s CreditVision® generic scoring methodology. Risk distribution key: subprime (0-625), near prime (626-655), prime (656-695), prime plus (696-720), super prime (721-999).

Read moreSouth Africa’s Credit Market Expanded During Q2 2025 Amid Eased Interest Rates and Shifting Consumer Risk

Nearly 7 in 10 South Africans Remain Optimistic About Finances Amid Rising Costs and Fraud Risks

Location: Business
  • 68% of South Africans are optimistic about their household finances in the next 12 months, despite persistent inflationary pressures
  • 75% expect their household income to increase over the next year, but 36% expect to be unable to meet their bill and loan payments in full
  • Younger generations show the strongest engagement with credit, with Gen Z and Millennials most likely to use buy now, pay later (BNPL) services.59% of consumers said they were targeted by fraud recently, with money/gift card scams the most reported scheme

South Africans are managing cost-of-living challenges with a blend of resilience and caution, according to TransUnion’s Q3 2025 Consumer Pulse Study*. The findings reveal that while inflation and affordability remain top concerns, many consumers are maintaining financial optimism while adopting protective behaviours, especially in credit usage and cyber security.

“South Africans are signalling confidence, but it’s a confidence shaped by awareness of risk,” said Ayesha Hatea, director of research and consulting at TransUnion. “Consumers are balancing optimism with caution, adjusting spending habits, making informed credit decisions, and staying vigilant to fraud.”

Financial Confidence, but Rising Costs

Nearly seven in 10 (68%) of South Africans are optimistic about their household finances over the next year, while 75% expect their income to increase during that period. However, this optimism exists alongside strain: 36% of consumers say they expect to be unable to pay at least one of their current bills or loans in full. South Africans were concerned about the impacts of price increases, most particularly for groceries (82%), utilities (60%), fuel for cars (52%) and medical care (52%).

Younger Generations Shape Credit Behaviour

Generational differences continue to define financial habits. Nearly half of Gen Z (18-28 years old, 48%) and Millennials (29-44 years old, 43%) reported they’ll apply for new credit or refinance existing credit in the next year, compared to far lower intent among Gen X (45-60 years old) and Baby Boomers (61-79 years old).

Younger consumers are also driving the adoption of buy now, pay later (BNPL) services with 55% and 59% of Gen Z and Millennials saying they’ve used BNPL in the last 12 months compared to 39% and 19% of Gen X and Baby Boomers, respectively. Overall, 15% of South Africans who have used BNPL in the last year said they did so to afford a larger purchase (furniture, appliances or cars), highlighting both its appeal and potential risks in a high-inflation environment.

Cautious Credit Intent Amid Affordability Pressures

While the vast majority of South Africans (93%) say that access to credit and lending products is important to be able to achieve their financial goals, many remain hesitant to take on new financial products. In fact, 38% said they’ll apply for new credit or refinance existing credit in the next year. Credit awareness among South African consumers remains strong, with 70% agreeing that access to credit can unlock new opportunities and improve quality of life.

This sentiment aligns closely with TransUnion’s financial inclusion priorities, particularly as alternative data becomes a more prominent tool in assessing creditworthiness. The study reveals that consumers are increasingly aware of how credit affects their daily lives, which highlights the importance of expanding access to credit through inclusive data strategies, especially for those traditionally excluded from formal financial systems.

Among those planning to apply for new or refinance existing credit in the next year, unsecured credit products such as personal loans (30%), new credit cards (29%) and BNPL services (22%) are the most popular credit types they said they’ll apply for. In contrast, a lower percentage said they’ll apply for secured credit options like a new car loan or lease (18%) or home loans (16%), highlighting a cautious approach to larger, long-term borrowing.

Nearly Two-Thirds Report Being Targeted with Fraud

Fraud attempts and scams remained high in Q3: 59% of South Africans said they were targeted by email, online, phone call or text messaging fraud in the last three months, the same percentage as Q2. Among those who said they were targeted, the most reported scheme was money/gift card scams (37%), with phishing (28%) and smishing (28%) also widespread.

With the persistence of attacks, consumers are proactively taking action. In fact, 54% of all surveyed said they changed passwords, 35% checked their credit report for any signs of fraudulent activity against their profile, and 27% modified their login to secure login without passwords options or added multi-factor authentication in the last 60 days in response to cyber security concerns.

“Fraudsters are evolving, and consumers are trying to keep pace,” said Hatea. “This is why education and accessible protection tools are so critical in building long-term trust in digital engagement.”

Consumers can get their free annual credit report from TransUnion here.

* TransUnion’s online survey of 966 South African adults was conducted June 17– 31, 2025.

Read moreNearly 7 in 10 South Africans Remain Optimistic About Finances Amid Rising Costs and Fraud Risks

Creditworthy and Misunderstood: New Data Challenges Lender Assumptions About Young Consumers

Location: Business

South Africa’s younger credit-eligible consumers present significant growth opportunities for lenders if they can overcome persistent market assumptions that currently shape risk appetite and acquisition strategies.

These assumptions include that younger consumers do not value credit, they are disengaged from the credit market, are irresponsible with debt, have low appetite for new credit, lack loyalty to lenders, and struggle to meet payment obligations.

They could also partly explain South Africa’s low 13% credit card market penetration among both Millennials (aged 29 to 44) and Gen Z (aged 18 to 28). Furthermore, Gen Z consumers adopt credit cards and personal loans at half the rate that Millennials did at the same age, suggesting limited growth for lenders as these consumers age.

“Our research suggests systemic barriers to credit access in South Africa, rather than a lack of demand,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “It also highlights that lenders have opportunities to innovate in product design, onboarding and education to empower these consumers to manage everyday expenses and unexpected financial needs as they progress towards achieving key life milestones.”

To challenge perceptions about younger consumers, TransUnion South Africa conducted a focused study[1] to test lenders’ perceptions, analysing participation, engagement and repayment behaviour among the country’s 4.3 million credit-active population aged 18 to 30.

Myth 1: Younger consumers don’t value credit

More than six in 10 (62%) younger consumers believe that access to credit is important to achieve their financial goals[2], with 76% saying that credit can give them access to new opportunities that could lead to a better quality of life. Younger consumers’ favourable perception of credit exceeds that of older consumers, 57% of whom believe access is important, and 71% of whom believe that access to credit can unlock new opportunities. However, less than a quarter (24%) of young consumers view credit as a risk to prudent financial management.

“Younger consumers increasingly see credit as a way to achieve their financial goals – even more so than older consumers,” Hatea said. “With most disagreeing that applying for credit signals poor financial management, it’s clear that opportunities exist for segment-focused products supported by financial literacy initiatives.”

Myth 2: Younger consumers are disengaged and don’t participate in the credit market

Nearly four in 10 (39%) young consumers feel that they have sufficient access to credit and lending products, with 49% believing that they would be approved for a credit product if they needed one.

It’s worth noting that, over time, consumers’ choice of credit product shifts. Reviewing credit card originations across a six-year period showed similar trends across time: 2% of 18 year old credit active consumers hold a credit card, compared to 19% of 30 year olds. Their participation in secured credit products increases with age, reaching parity with the general population by 30 and reflecting life stage realities like income, affordability and asset ownership, rather than disengagement.

“These shifts show that young consumers are engaged with the credit market, particularly with unsecured products, but their participation evolves across product types and life stages,” Hatea said.

Myth 3: Younger consumers are irresponsible in leveraging debt

Credit utilisation and average balances are well aligned with risk-based access that improves with age. At age 21, 95% of consumers are classified as subprime, dropping to 74% by age 30, reflecting a maturing credit profile.

Despite limited access, younger borrowers demonstrate measured usage: the average credit card balance at age 21 is R11,000, rising to R24,000 by age 30, while utilisation among near-prime consumers increases from 58% to 78% over the same age range.

“These trends highlight responsible engagement with credit and clearly refute the myth that younger consumers overextend their credit exposure, or are reckless with credit,” Hatea said. “As young consumers gain access to larger loan amounts, they move into better risk categories, reflecting greater lender trust in recognition of responsible repayment behaviour.”

Myth 4: Younger consumers have a low appetite for credit, and lack loyalty to lenders

While one third (33%) of the general population intends to apply for new credit within the next year, this increases to 45% for Gen Z consumers. Additionally, 36% of these consumers inquired about new credit over the six years studies, compared to 28% of all consumers. However, only 3.4% of younger consumers return to their first lender for new credit – similar to the 3.6% average across all consumers.

“The data shows that younger consumers do indeed have appetite for credit, while revealing that South African consumers in general are not particularly loyal to their credit providers,” Hatea said. “To build loyalty and retain younger consumers, lenders should invest in early-stage experiences, personalised engagement, and relevant products that build lasting relationships.”

Myth 5: Younger consumes struggle to keep up with their payment obligations

Interestingly, younger consumers show significantly lower risk of delinquency at 30 days past due (DPD) in the first year after opening credit cards, although this rises as they get older: there was a 17% delinquency rate among near prime 18 to 22 year olds, while 30 year olds displayed a 24% delinquency rate.

However, for non-bank loans and bank loans, younger consumers (18 to 24 years old) show slightly higher delinquency rates than older consumers, although younger consumers, especially those aged 23 to 25, perform better than the industry average. This indicates that lender type influences delinquency outcomes, and that younger borrowers may respond differently to the structure, support, or perception of a lender’s credit.

“Younger consumers are effectively managing their loans when compared to industry averages across most products,” said Hatea. “They’re not broadly higher risk, but they may be more vulnerable in certain lending contexts, particularly non-bank personal loans, where product design, support, or affordability may not be well aligned to their needs. Higher delinquency rates on non-bank personal loans can be addressed through early default detection tools.

“By focusing on education, wallet growth, loyalty, alternative data to measure risk, and proactive risk management, lenders can support younger consumers and drive long-term, sustainable growth among these consumers and in the broader credit market,” she said. “Well-managed credit can also be a catalyst for broader economic growth in South Africa.”

[1] TransUnion South Africa conducted a focused study to test lenders’ perceptions of consumers aged 18 to 30, analysing participation, engagement and repayment behaviour among the country’s credit-active population in this age group. Data was studied across four time frames (September in 2018, 2022, 2023 and 2024), and included age, risk score, open products in wallet, credit lines, average balances by product and credit utilisation at commencement of the study, new products opened, line assignments and opening loan amounts for six months, and delinquency rates on newly opened products for 12 months. These were compared to overall market averages to evaluate gaps and opportunities.

[2] According to TransUnion’s Q2 2025 Consumer Pulse Survey of 922 adults aged 18 or older, residing in South Africa conducted May 5–25, 2025 by TransUnion in partnership with third-party research provider, Dynata.

Read moreCreditworthy and Misunderstood: New Data Challenges Lender Assumptions About Young Consumers

TransUnion Study Reveals Key Insights Into South Africa’s FinTech Borrowers as Market Poised for Growth

Location: Business
  • TransUnion analysis reveals actionable insights for FinTech lenders seeking to navigate market complexities to achieve growth targets
  • FinTech lending is not the main gateway to financial inclusion, with most consumers choosing a clothing account as their first credit product
  • FinTech borrowers are loyal when it comes to subsequent products, but FinTech lenders are lower in consumers’ payment hierarchy than other lender types

TransUnion’s latest research into South Africa’s FinTech lending market reveals critical insights into borrower behaviour, loyalty and risk based on an analysis of 4.3 million South Africa consumers. The study highlights patterns that present both opportunities and challenges when navigating a rapidly digitising credit ecosystem.

South Africa’s FinTech sector is undergoing rapid transformation, signalling a major shift in how consumers will engage with credit in the next five years, and beyond. As digital adoption accelerates, lenders will need to adapt their approach to South African consumers if they’re to attract, retain and grow relationships with digitally engaged borrowers.

Emerging FinTechs are offering diverse solutions such as buy now, pay later (BNPL) loans with interest free payments, flexible financing for small and medium enterprises, point-of-sale credit and insurance coverage. Financial services are now more accessible than ever before. However, it’s essential that the lenders behind these solutions understand who is using them, how they engage with credit, and whether borrowers’ loyalty can help drive sustainable growth.

“As competition intensifies and regulatory frameworks evolve, lenders must go beyond product innovation and develop a deeper understanding of consumer behaviour,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “Our study offers a data-driven lens into the FinTech borrower profile, helping lenders build loyalty, manage risk, and drive inclusion.”

TransUnion analysed South Africans who held at least one open FinTech credit obligation in Q4 2024, including long-term personal loans, short-term personal loans and credit cards, to learn more about the consumers driving growth in the sector. The study examined risk profiles, delinquency trends, product breadth, and loyalty patterns among FinTech borrowers. Further, the study compared those characteristics to similar-risk consumers using traditional lender products only (non-FinTech borrowers[1]), providing a deeper understanding of growth opportunities for South Africa’s credit market.

Five Themes Shaping FinTech Lending Strategy

1.     FinTechs are not yet the main gateway to financial inclusion.

Despite South Africa’s high mobile penetration[2], 69% of New-to-Credit consumers – those with no prior reported credit history – enter the market via retail accounts, with clothing accounts being the most common first product. FinTechs have an opportunity to reposition themselves as enablers of financial inclusion by partnering with retailers and mobile ecosystems to reach underserved segments.

2.     FinTech borrowers are concentrated in below prime risk tiers[3].

While many FinTech borrowers have experience managing credit, 95% of FinTech borrowers with 0–1 month loans are in below prime risk tiers, compared to 29% for bank borrowers and 69% for non-bank lender borrowers. For 2–12 month loans, 94% of FinTech borrowers are below prime, in contrast to 58% for banks and 50% for non-banks. This highlights greater risk exposure among the FinTech borrower base and suggests that FinTech lenders could benefit from leveraging trended and alternative data to better predict repayment risk and reduce delinquency rates, particularly among below-prime borrowers.

3.     FinTech borrowers are not all underserved.

Among 0–1 month term borrowers, 44% of FinTech consumers already hold two or three credit products and 27% hold four or more, debunking the assumption that FinTech borrowers have limited access to credit. Additionally, more than 56% of FinTech personal loan borrowers hold credit products with non-FinTech lenders. These multi-lender relationships underscore the need for lenders to view borrowing patterns holistically and better understand the reasons why borrowers may be seeking credit from different lender types, in order to develop strategies for capturing more of their customers’ wallets.

4.     FinTech borrowers underperform on repayments.

While there are no material differences by lender type for longer-term loans, there are significant differences for 0-1 month loans. This is an important consideration as these shorter-term loans are more likely to be used by borrowers earlier in their credit journeys when they are potentially more financially vulnerable. After controlling for borrower risk score, delinquency rates (consumers 2+ months in arrears on a loan) were highest among FinTech borrowers: The consumer-level delinquencies were 74% for 0–1 month loans from FinTechs compared to lower rates for bank loans (53%) and non-bank lender loans (53%), underscoring the need for enhanced risk management strategies tailored to the FinTech segment.

5.     FinTech borrowers are loyal to FinTech lenders

TransUnion’s research provides compelling evidence of borrower loyalty within the FinTech lending ecosystem. Among consumers who originated a 0–1 month personal loan, 65% opened another 0–1 month loan within 12 months, and 93% of those chose a FinTech lender. More than one fifth (21%) of these borrowers progressed to a 2–12 month loan, with 80% remaining with FinTech providers.

Among consumers who started with a 2–12 month personal loan, 95% opened another 2–12 month loan, with 60% choosing a FinTech lender. In addition, 85% of these borrowers also opened a 0–1 month loan, and 38% did so with FinTech lenders. These patterns demonstrate a strong preference among borrowers to remain within the FinTech category, even as they take loans over longer time periods. This loyalty presents a strategic opportunity for FinTech lenders to deepen relationships through personalised engagement, targeted product offerings, and proactive risk management.

However, loyalty in product originations does not necessarily translate into repayment prioritisation. When consumers hold loans with both FinTech and non-FinTech lenders, they tend to prioritise repayments to traditional institutions. Among consumers with 2–12 term personal loans from both FinTech and non-FinTech non-bank lenders, delinquency measured as 1+ month in arrears was 33% for FinTechs, compared to 26% for non-FinTech non-bank lenders. Similarly, for those with loans from both FinTechs and banks, delinquency was 30% for FinTechs versus 28% for banks.

The takeaway for lenders is that while FinTech borrowers are loyal in terms of repeat borrowing, they may deprioritise FinTech repayments when under financial pressure. This highlights the need for FinTech lenders to strengthen their engagement strategies, build trust, and implement early intervention tools to improve repayment outcomes and long-term value.

“If lenders are to benefit from the anticipated growth in the FinTech lending market, it’s essential that they offer financial literacy and awareness education to help consumers understand how responsible credit use can support their financial goals. Once consumers have opened FinTech-issued products, lenders can activate lifestyle triggers to anticipate consumer progression so that they can deliver timely, relevant engagement to drive loyalty and long-term value. This can be further supported by deploying predelinquency models to identify early signs of consumer stress, and to initiate recovery efforts before risk escalates,” said Hatea.

[1] FinTech consumers were those with an open FinTech long-term personal loan, short-term personal loan, or credit card. Non-FinTech consumers were a control group with no FinTech obligations of any type in their history, who held a long-term personal loan, short term personal loan or credit card from a non-FinTech lender

[2] 118,600,000 connections across 60,690,000 people https://datareportal.com/reports/digital-2024-south-africa

[3] Scores are based on TransUnion’s CreditVision® generic scoring methodology. Risk distribution key: subprime (0-625), near prime (626-655), prime (656-695), prime plus (696-720), super prime (721-999).

Read moreTransUnion Study Reveals Key Insights Into South Africa’s FinTech Borrowers as Market Poised for Growth

Boost for ECD and Informal Trade

Location: News

Today, the Tshwane Department of Economic Development and Spatial Planning, under the political leadership of GOOD’s Councillor Sarah Mabotsa, has brought two important reports to Council for approval.

The post GOOD WELCOMES BOOST FOR ECD AND INFORMAL TRADE appeared first on For Good.

Read moreBoost for ECD and Informal Trade

TransUnion’s New AI-Powered Film Puts Humanity at the Heart of Data

Location: Business

TransUnion, a global information and insights company, has unveiled a bold new chapter in its South Africa-focused Be the Reason Things Change campaign with the launch of a powerful AI-driven brand film. This emotionally resonant digital piece continues the campaign’s mission to make financial inclusion a lived reality for more South Africans by reimagining how technology can be used to tell human stories of inclusion, visibility and empowerment.

Developed with creative agency One Over One and production partner Run Jump Fly, the film fuses artificial intelligence with authentic storytelling to capture the experiences of everyday South Africans navigating the financial system. It serves as both a creative innovation and a powerful social statement – demonstrating how data, when used responsibly, can shine a light on those who are often unseen.

“The AI film is more than a creative milestone; it’s a deeply human story told through the lens of technology. Using AI-generated visuals, the film brings to life the emotional realities behind financial data – the hope of opportunity, the weight of exclusion, and the power of visibility,” said Amy Beck, CMO of TransUnion Africa. “Rooted in empathy and powered by innovation, the film embodies our belief that technology should serve people, not the other way around. It invites viewers to look past the numbers and be part of a movement changing the way we see each other”.

Turning Data into Impact

The AI film builds on the success of TransUnion’s Be the Reason Things Change movement, which has inspired South Africans to act – making the invisible visible and driving meaningful impact across the country.

In just one month, the campaign achieved:

  • 10,838 panels peeled nationwide (this includes physical and digital billboard panels), each unlocking access to free credit education e-learning courses, valued at R2,000 each.
  • Education fund prizes awarded to five individual winners, valued at R20,000 each, awarded directly to recognised educational institutions or nominated beneficiaries.
  • Ten tech-for-learning prizes, worth R7,000 each, comprising of a laptop and 12 months of data, equipping recipients with the tools they need to thrive in a digital-first world.

These results go beyond metrics – they represent real lives changed through knowledge, opportunity and empowerment. One of the five recipients of the R20,000 education fund prize, Roggers Mamaila, shared how the campaign has made a lasting impact on his family’s future: “This contribution towards my family’s education means more than words can express. It’s a tangible step toward a better future – one my family will carry with pride for years to come. It’s proof that when people are seen, real change becomes possible.”

AI with a Purpose

In an age where artificial intelligence often feels distant or impersonal, TransUnion’s new film reframes the narrative – showing how innovation, when guided by empathy, can accelerate financial inclusion and create lasting change.

Unlike many AI-driven creative pieces that use artificial intelligence in fragments – generating snippets, visuals, or voiceovers – this film is a fully integrated, end-to-end AI production. From concept to execution, every aspect of the film was shaped using AI tools, making it a first-of-its kind on the African continent. What sets this film apart is not just its use of technology, but its authenticity and purpose. The film draws its narrative from real lives and lived experiences, transforming data into emotion, and statistics into stories that matter.

Every frame is a reflection of the campaign’s core belief: that visibility leads to change. This isn’t just an experiment in technology – it’s a movement in storytelling. The piece invites viewers to rethink what’s possible when technology and trust work together – to see every data point as a story, every statistic as a person, and every innovation as a chance to drive inclusion.

The campaign continues to challenge traditional notions of creditworthiness by advocating for alternative data and inclusive scoring models that better reflect the realities of underserved communities.

Watch the AI brand film and learn more at: https://www.transunion.co.za/bethereason

Read moreTransUnion’s New AI-Powered Film Puts Humanity at the Heart of Data

Suspected Digital Fraud Most Frequent at Account Login in South Africa, TransUnion Reports

Location: Business
  • Money or gift card scams were the most prevalent fraud type from February to May 2025, reported by one-third (33%) of South Africans who said they were targeted with fraud
  • Transactions with video gaming companies, where the consumer was in South Africa, were most suspected of digital fraud in the first half of 2025 among industries analysed
  • Insurance sector experienced the largest increase in the volume of suspected digital fraud among industries analysed, over the study period

According to the newly released TransUnion® (NYSE: TRU) H2 2025 Update to the Top Fraud Trends Report, the rate of suspected digital fraud[1] was the highest in the consumer lifecycle at account login for South Africa with 2.6% of those types of transaction attempts when the consumer was in the country being suspected of digital fraud in the first half (H1) of 2025. This aligns with a global trend of fraud shifting to account takeover attempts which typically occur at login. Globally, 4.3% of account login transactions in H1 2025 were suspected of digital fraud.

The report, which draws on proprietary data from TransUnion’s global intelligence network from billions of transactions from over 40,000 websites and apps and a consumer survey across 18 countries, reveals that fraud is growing.

“South Africa stands at a critical juncture in its digital evolution where opportunity and vulnerability intersect. As the nation embraces rapid digital transformation, the surge in online activity has inadvertently opened new doors for fraudsters, whose tactics are growing more sophisticated by the day. This convergence of accelerated digital adoption, economic strain and criminal innovation has created a complex risk landscape,” said Amritha Reddy, senior director of fraud product management TransUnion Africa.

According to analysis of TransUnion’s customers in its global intelligence network, digital account takeover volume worldwide grew 21% year-over-year (YoY) from H1 2024 to H1 2025, signalling a rapid escalation. The volume of digital account takeovers surged 141% from H1 2021 to H1 2025, underscoring persistent rise of this fraud type over time and reflecting the increasing sophistication of fraudsters who exploit stolen credentials and bypass authentication systems.

"As account takeover fraud surges, businesses can no longer afford solely reactive defences,” said Reddy. “The growing sophistication of fraudsters demands a proactive investment in layered security and identity intelligence. In today’s threat landscape, protecting customer accounts is not just a priority, it’s a business imperative."

Highest Rate of Suspected Digital Fraud in Video Gaming

Among industries analysed globally, the video gaming sector recorded the highest percentage of suspected digital fraud attempts in the first half of 2025, reaching 13.5%. This represents a significant 28% rate increase compared to the same period in 2024, underscoring the growing vulnerability of this sector to fraudulent activity.

For transactions where the consumer was in South Africa, the rate of suspected digital fraud attempts from February to May 2025 was the highest in video gaming at 7.7%. The greatest increase in the volume of digital transactions suspected to be fraudulent over that time was in the insurance industry, with a 154% uptick.

Chart 2: Suspected Digital Fraud Attempts in South Africa, by Sector

Industry

Suspected digital fraud attempt rate H1 2025

Change in volume of suspected digital fraud attempts from H1 2024 to H1 2025
Video gaming

7.7%

-1%
Insurance

6.7%

+154%
Communities (web properties like online forums and dating sites)

3.2%

-45%
Financial services

3.0%

-49%
Logistics

2.1%

-99%
Retail

1.1%

-57%
Telecommunications

0.7%

-96%

Source: TransUnion global intelligence network

“As the risk from consumer scams threatens identity integrity, organisations should rely on a mixture of data, risk signals, technology and tools to prevent fraud,” said Reddy. “The Report highlights that business leaders rank[2] identity verification, device reputation and behavioural biometrics as the leading three fraud prevention technologies.

“Businesses and financial institutions should also invest in sustained education and awareness campaigns to mitigate against schemes like account takeovers. Preventing fraud must by necessity be a multi-pronged strategy, if businesses and consumers are to stay ahead of fraudsters whose strategies continue to evolve too,” she said. “By harnessing advanced technologies, fostering cross-sector collaboration, and prioritising consumer trust, South Africa can chart a path toward a secure and inclusive digital future.”

Consumer-Reported Exposure to Fraud Grows Amid Gaps in Awareness and Prevention

Globally, consumers continue to face a wide range of scams, with tactics often tailored to regional behaviours and vulnerabilities. TransUnion’s survey found that 48% of consumers surveyed globally reported being targeted by email, online, phone call or text messaging fraud from February to May 2025, with 59% of South Africans saying the same thing. Globally, 52% were unaware that they were targeted, as were 42% of South Africans, indicating potential fraud under-recognition and a gap in fraud awareness.

Consumers in five of the six African countries surveyed reported money or gift card scams as the most experienced fraud type. In South Africa money or gift card scams was the most common fraud type – reported by 33% of those who said they were targeted with email, online, phone call or text messaging fraud from February to May 2025. Among those South Africans who said they were targeted, the next most frequently reported scams were phishing (31%), smishing (30%), and vishing (29%), with these three designed to deceive individuals into giving up their valuable personal or financial information.

South Africa Saw the Greatest Percentage of Respondents in Africa Indicating They Fell Victim to Fraud from February to May 2025

Country Targeted and fell victim Targeted but didn’t fall victim Not targeted Most reported fraud scheme
South Africa 13% 46% 42% Money/gift card
Kenya 10% 71% 19% Vishing
Zambia 9% 76% 15% Money/gift card
Rwanda 9% 49% 42% Money/gift card
Namibia 8% 57% 35% Money/gift card
Botswana 6% 68% 26% Money/gift card

Source: TransUnion consumer survey

“As scammers continue to evolve their tactics to enrich themselves, it’s more important than ever for consumers to regularly review their credit reports to ensure all listed information is accurate,” said Reddy.”

TransUnion came to its conclusions about digital fraud and data breaches based on intelligence from its array of TransUnion fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes South Africa, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H2 2025 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

[1] Suspected digital fraud attempts reflect those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation.

[2] As found by TransUnion’s online business survey conducted from 29 May to 6 June 2025 in partnership with third-party research provider, Dynata. Findings were included in TransUnion’s H2 2025 Update to the Top Fraud Trends Report

Read moreSuspected Digital Fraud Most Frequent at Account Login in South Africa, TransUnion Reports