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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

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

Tshwane Metro’s Water Partnership May Be Doomed to Failure

Location: News

The Freedom Front Plus (VF Plus) notes the Tshwane Metro’s recent partnership with the Strategic Water Partners Network (SWPN), announced on 17 October 2025. This partnership entails rolling out a digital “water balance dashboard” designed to reduce water losses, detect leakages and improve demand management. While the initiative is commendable on paper, the Freedom Front […]

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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

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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

Building Plan Crisis in Johannesburg

Location: News

The Freedom Front Plus (VF Plus) condemns the Johannesburg Metro Council’s ongoing failure to properly manage building plans, land-use systems and the city’s archives. The result is a city administration that inflicts serious harm on ordinary homeowners, property developers and small businesses through delays, additional costs and legal uncertainty. Reports indicate that the city’s planning […]

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A Spectacular Reset of Relations Between South Africa and the US Is Possible

Location: News

There are currently three Afrikaners in Washington who believe there is a unique opportunity for a spectacular reset of relations between South Africa and the United States (US). The full provisional document is attached herewith: Let us Make Critical Minerals the Centerpiece of a New U.S.–South Africa Partnership Agreement As Afrikaners responsible for a multi-million-dollar […]

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Has Your Learner Been Given a Tablet?

Location: News

Making promises to children and then letting them down is a crying shame. To make matters even worse, the culprit is the President of the country and his empty promises directly harm these children’s future. In his 2019 State of the Nation Address (SONA), President Cyril Ramaphosa promised that all schools in South Africa would […]

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Tshwane Metro Petitions Disappear

Location: News

The Freedom Front Plus (VF Plus) demands an urgent investigation into the mysterious disappearance of four petitions submitted by the party on 29 May 2025 during a Tshwane Metro Council meeting. The party submitted four petitions – concerning power outages in Ward 55, the Hillcrest public swimming pool, illegal buildings in Ward 98 and a […]

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Collaboration With Private Sector in Issuing IDs and Passports Welcomed

Location: News

The Freedom Front Plus (VF Plus) welcomes the announcement that the Department of Home Affairs has expanded its digital banking partnerships as additional financial institutions have indicated that they will assist with issuing identity documents (IDs) and passports. Approximately 840 branches of Capitec, First National Bank, Absa, Discovery and Standard Bank are now involved in […]

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