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Market
Affordability Reshapes South Africa’s Credit Market in Q2 2026
- Retail credit originations declined across clothing, revolving and instalment products, with each segment showing increasingly distinct consumer behaviours
- Despite significant growth in new vehicle sales during the quarter, vehicle asset finance growth slowed as consumers shifted focus to long-term affordability rather than simply accessing credit
- Bank and non-bank personal loan markets continued to grow, with distinct performance outcomes
As many South Africans continue to feel the pressure of rising living costs, affordability is affecting popular credit products in diverse ways as consumers adapt their borrowing strategies rather than stepping away from credit altogether. The latest TransUnion Q2 2026 South Africa Industry Insights Report shows that households are becoming more selective about how they borrow, with consumers prioritising products that align with their needs while carefully managing affordability.
Acquisition Slowed as Portfolio Outcomes Diverged
Growth in retail credit originations (new accounts opened) declined across all major retail lending products during the quarter. New clothing accounts fell 7.8% year-over-year (YoY), retail instalment originations declined 10.3%, and retail revolving originations decreased 12.2%.
While all three credit products experienced lower new account volumes, the underlying customer and portfolio trends across these products tell very different stories.
Despite new account acquisition falling significantly, the clothing account portfolio continued to demonstrate stability, supported by existing customer relationships. Total credit lines increased by 12.4% YoY, outpacing balance growth of 8.0% YoY. This may reflect ongoing line management among existing customers, while the slower increase in balances suggests that consumers are using the additional capacity selectively, using only the credit they need to support day-to-day consumption in a challenging economic environment.
Clothing account performance improved slightly, with serious account-level delinquency (3+ months in arrears, or MIA) decreasing by eight basis points (bps) YoY to 26.5%. However, balance-level delinquency deteriorated by 67 bps, suggesting that repayment pressure is becoming more concentrated among customers carrying larger balances.
The retail revolving credit segment followed a different trajectory. Account volumes declined by 4.5%, the number of active consumers fell 4.4% YoY and outstanding balances decreased 1.9% YoY, indicating continued market contraction. Despite weaker acquisition (origination volumes dropped by 12.2% YoY) and lower participation, performance improved materially, with account-level delinquencies improving by 135 bps YoY to 16.0%. These trends suggest that while the portfolio may be shrinking in size, quality has improved, as tighter lending and portfolio rationalisation have yielded a more resilient borrower base.
Retail instalment lending presented yet another picture. Origination volumes declined by 10.3% YoY and the number of consumers carrying balances fell by 13.9% YoY, yet outstanding balances increased by 12.0% YoY and average balances rose by 9.8% YoY. Serious delinquency deteriorated across all measures: account-level delinquency increased by 146 bps, with similar deterioration for consumer-level and balance level delinquency, pointing to mounting repayment pressure among remaining borrowers.
For lenders, the combination of fewer consumers, higher average balances and broad-based delinquency deterioration reinforces the need to assess affordability carefully at origination and monitor existing portfolios closely for emerging signs of stress, particularly among retail instalment customers.
These trends align with findings from TransUnion’s Q2 2026 Consumer Pulse Study which showed that 52.7% of consumers said that they had cut discretionary spending in recent months, while nearly two thirds (63.4%) said that they actively sought sales and discounts when shopping, to make ends meet.
“South Africa’s retail credit market continued to fragment during the quarter under review, with clothing, retail revolving and instalment lending following increasingly different trajectories,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “While all three products experienced lower origination activity, the underlying performance and portfolio trends suggest consumers are becoming more selective in how they use retail credit and lenders are responding differently across product types. As a result, retail credit can no longer be viewed as a single market, but rather as a collection of products serving distinct consumer needs and risk profiles, each of which may be experiencing varying levels of financial strain or resilience.”
Consumers’ Mobility Choices Influenced by Long-Term Affordability
Despite new passenger vehicle sales increasing strongly during Q2 2026 according to TransUnion’s Q2 2026 Mobility Insights Report, the vehicle finance market recorded modest growth in Q2 2026, continuing to demonstrate demand despite a more challenging affordability environment. Outstanding balances increased 8.0% YoY, supported by a 5.5% YoY increase in average new loan values, while origination volumes grew modestly by 1.1% YoY. Importantly, credit performance continued to improve, with serious account-level delinquencies decreased by 115 bps, indicating that growth continues to be accompanied by relatively strong portfolio performance.
This resilience is particularly noteworthy given shifts occurring elsewhere in the automotive market. According to the Mobility Insights Report, vehicle purchase intentions softened during Q2 2026, particularly among lower- and middle-income consumers. Affordability, financing costs, fuel efficiency and total cost of ownership have become increasingly important considerations in vehicle selection.
At the same time, consumers showed growing interest in technologies that could reduce long-term ownership costs, with hybrid vehicles emerging as an increasingly attractive alternative for consumers focused on fuel efficiency and operating costs. These developments suggest that demand is being reshaped by more value and affordability considerations, rather than disappearing altogether.
“Consumers are increasingly evaluating not only whether they can finance a vehicle, but also whether they can comfortably own and operate it over the longer term. This shift is likely to influence vehicle choice, financing structures and portfolio composition as the market continues to evolve,” said Hatea.
“Affordability pressures appear to be changing the structure of demand rather than reducing participation in the market. Consumers remain interested in mobility solutions but are becoming more selective about how their needs are met. Lenders that can balance access, affordability and risk management are likely to be best positioned to support sustainable growth in the vehicle finance market,” she added.
Personal Loan Trends Continued to Diverge
South Africa’s personal loan market continued to expand during Q2 2026, but the underlying trends diverged sharply between bank and non-bank lenders. While both segments recorded growth, differences in loan size and credit performance point to distinct borrower needs and risk outcomes.
Bank personal loan originations increased 7.7% YoY, outstanding balances grew 8.9% YoY and average new loan amounts increased 9.2% YoY, indicating continued demand for larger-value unsecured credit. These gains were accompanied by improved performance, with account-level delinquency improved by 194 bps YoY to 26.5% and balance-level delinquency improved by 342 bps YoY to 29.3%. Together, these trends suggest that banks found growth opportunities among consumers with the capacity to manage larger borrowing commitments while maintaining disciplined risk management and portfolio quality.
Non-bank personal loan originations increased by 21.3% YoY and the number of consumers carrying balances rose by 12.7% YoY, significantly outpacing the bank personal loan market. However, average new loan amounts declined by 5.9%, indicating that growth was increasingly concentrated in smaller-ticket lending. This points to continued demand for accessible liquidity and short-term credit solutions, particularly among consumers seeking smaller borrowing amounts.
While this supports broader access to credit, the non-bank personal loan segment also experienced a deterioration in credit performance. Serious account-level delinquency increased by 32 bps YoY to 48.3%, while balance-level delinquency rose by 636 bps YoY to 54.6%.
Lenders across these products target different risk groups: bank personal loan originations have tilted modestly towards subprime over the last two years, reaching 56.6% in Q2 2026 compared to 53.8% two years prior. In contrast, subprime non-bank personal loan customers account for 71.3% in Q2 2026, compared to 68.3% two years prior. This suggests that banks are widening access selectively, without dramatically changing their credit posture, while non-bank lenders are servicing the highest risk, highest need consumers – a dynamic that explains the sharp divergence in delinquency trends across the two segments.
“The contrast between bank and non-bank personal lending shows why growth must be assessed alongside loan value and credit performance,” said Hatea. “Understanding which consumers are driving expansion, and whether that growth is sustainable, is becoming increasingly important for lenders.”
Table 1: Key South African Consumer Credit Market Metrics (Q2 2025 vs Q2 2026)
| Product | YoY origination growth | Serious account-level delinquency rate* | YoY basis points (bps) change in delinquency rate |
| Credit card | -16.8% | 13.1% | +22 bps |
| Bank personal loan | 7.7% | 26.5% | -194 bps |
| Non-bank personal loan | 21.3% | 48.3% | +32 bps |
| Clothing accounts | -7.8% | 26.5% | -8 bps |
| Retail instalment | -10.3% | 27.3% | +146 bps |
| Retail revolving | -12.2% | 16.0% | -135 bps |
| Home loans | -10.5% | 7.2% | -52 bps |
| Vehicle finance | 1.1% | 6.4% | -115 bps |
*Account-level serious delinquency rate, measured as a percentage of accounts three or more months in arrears
“For lenders, sustainable growth will depend on looking beyond volume to the affordability, risk and repayment capacity behind each credit decision,” said Hatea. “Those that can identify where consumers have the capacity to take on credit responsibly, while responding early to emerging stress, will be best positioned to grow without compromising portfolio quality."
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TransUnion Botswana Launches Three New Intelligence Solutions to Help Advance Smarter Lending and Financial Inclusion
- Following the recent licensing process, TransUnion is reaffirming its commitment to Botswana through investment in enhanced data capabilities and the launch of three new intelligence solutions
- An enhanced and enriched dataset gives lenders a more comprehensive view of borrower behaviour and payment performance
- New analytical solutions are designed to help financial institutions make better lending decisions, improve risk management and unlock greater economic participation.
TransUnion Botswana announces the launch of three new intelligence solutions designed to help financial institutions make smarter lending decisions, strengthen risk management and responsibly expand access to credit. Supported by an enhanced dataset that provides a richer view of consumer payment behaviour, the new solutions will help lenders unlock greater economic participation while supporting sustainable growth across Botswana's financial sector.
Following the recent licensing process, TransUnion is continuing to invest in Botswana's financial ecosystem through enhanced data capabilities, advanced analytics and new solutions designed to support lenders and consumers alike.
"The launch of these three new solutions represents an important investment in Botswana's financial future," says Kabelo Ramaselwana, chief executive officer, TransUnion Botswana. "Financial institutions need deeper insights and stronger analytics to support responsible growth. By combining richer data with advanced intelligence solutions, we are helping lenders make better decisions, expand access to credit and support greater economic opportunity."
New Intelligence Solutions for a New Credit Environment
TransUnion is introducing three new capabilities designed to help Botswana's financial institutions grow responsibly, improve decision-making and unlock new opportunities.
- Industry Scores use sector-specific predictive models to help lenders assess thin-file and credit-invisible consumers with greater confidence.
- Collections Solutions enable smarter, data-driven collections strategies that improve recoveries while reducing operational costs.
- Business Intelligence Reports provide market and portfolio benchmarking insights, helping organisations understand performance, identify growth opportunities and make more informed strategic decisions.
Together, these three solutions equip organisations with the intelligence needed to expand access to credit, strengthen risk management and drive sustainable growth.
Enhanced Data for Better Lending Decisions
These solutions are underpinned by an enhanced dataset that brings together broader payment and credit information to provide a more complete view of consumer payment behaviour and credit obligations. By reducing fragmented views of borrowers, financial institutions can make more informed decisions across the credit lifecycle, from origination and portfolio management to collections.
For lenders, access to richer information means decisions can increasingly be based on a broader understanding of borrower behaviour, helping institutions identify opportunities while maintaining sound risk management practices.
Unlocking Access to Credit and Economic Growth
Botswana's financial sector is entering a period of significant transition. While the country remains one of Africa's most financially included markets, lenders face increasing pressure to balance growth, affordability and risk amid changing consumer credit profiles, rising living costs and broader economic pressures.
At the same time, significant opportunities remain to broaden access to credit. Although around 72% of adults have access to a bank account or mobile money service, a large share of the population remains outside the formal credit system. As a result, lenders often struggle to assess creditworthiness using traditional risk models, limiting borrowing opportunities for consumers and small businesses.
TransUnion analysis indicates that richer data and enhanced scoring models could increase loan approvals by 4% to 6% annually while maintaining credit quality, potentially unlocking up to P5 billion in additional lending across the market. Enhanced collection capabilities have also demonstrated a 38% increase in visibility and a 40% improvement in collections yield, helping institutions strengthen portfolio performance and support sustainable economic growth.
Supporting Consumer and Business Growth
The opportunity extends beyond personal credit. Botswana's MSME sector employs approximately 175,000 people and generates an estimated P14 billion in annual turnover, yet many businesses continue to rely on manual record-keeping, making it more difficult to demonstrate creditworthiness and access finance. Enhanced commercial credit information and business analytics can help financial institutions better assess these businesses and support their growth through improved access to funding.
As financial institutions navigate an increasingly complex environment, access to deeper market intelligence is becoming increasingly important. TransUnion's Business Intelligence capabilities are designed to help organisations understand portfolio performance trends, monitor market developments and identify emerging opportunities, enabling more informed strategic decision-making.
Investing in Botswana Financial Future
TransUnion remains committed to supporting Botswana's evolving financial sector through ongoing investment in data, analytics and innovation. By combining global capabilities with local market expertise, the company aims to help lenders serve consumers and businesses more effectively while supporting broader economic growth.
"Growth and risk discipline are no longer opposing objectives," says Ramaselwana. "More complete information allows institutions to identify and serve the right consumers and businesses with greater confidence. That is good for lenders, good for consumers and ultimately good for Botswana's economy."
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South Africans Aren’t Giving Up on Car Ownership. They’re Just Buying Differently
- TransUnion's Q2 2026 Mobility Insights Report reveals new passenger vehicle sales grew 15.8% year-on-year, the strongest annual growth in three quarters.
- Used-to-New Ratio declines from 3.2 to 2.7 year-on-year, reinforcing the shift towards new vehicles
- Vehicle purchase intent declined from 22% to 19%, as households became more cautious amid rising affordability pressures.
Despite continued fuel price pressure, rising living costs and ongoing strain on household finances, South Africans continue to prioritise vehicle ownership. According to TransUnion's Q2 2026 Mobility Insights Report, new passenger vehicle sales increased 15.8% year-on-year during the quarter, marking the strongest annual growth recorded in the past three quarters despite challenging economic conditions.
Beneath this growth, however, a significant shift is underway. Consumers are showing renewed interest in used vehicles and more affordable options as affordability becomes a more important consideration. The changing dynamics are reflected in vehicle registration patterns.
The used-to-new ratio declined from 3.2 in Q2 2025 to 2.7 in Q2 2026, indicating that new vehicles gained market share over the past year. While the ratio increased from 2.3 in Q1, the year-on-year movement confirms that the broader shift towards new vehicles remains intact.
"One of the most encouraging findings from this quarter's report is that South Africans have not stepped away from vehicle ownership despite a more challenging economic backdrop," says Ayesha Hatea, director of research and consulting at TransUnion Africa.
"What we are seeing instead is a more pragmatic consumer. Mobility remains essential, but consumers are carefully weighing affordability, financing costs, fuel efficiency and long-term ownership expenses before making purchasing decisions."
As consumers increasingly turn to used vehicles, alternative financing structures, rental models and digital purchasing journeys, the industry's risk profile is evolving alongside these opportunities. Fraud is no longer confined to traditional vehicle-finance applications. Businesses face growing exposure to identity fraud, synthetic identities, document manipulation, income misrepresentation, ownership fraud and payment fraud across multiple points of the automotive ecosystem.
Affordability Reshapes the Market
One of the clearest indicators of changing consumer priorities is the rapid rise of Chinese automotive brands. These brands now account for more than one in every five (22.4%) passenger and light commercial vehicles sold in South Africa, highlighting the growing importance of affordability, technology and overall value in purchasing decisions.
"Affordability has become one of the defining themes of South Africa's mobility market," says Hatea. "Consumers are increasingly looking for the best overall value proposition rather than simply the lowest price. Brands that combine affordability, quality, technology and lower running costs are proving particularly attractive in the current environment."
Consumers Remain Engaged but More Cautious
Data from TransUnion's Q2 2026 Consumer Pulse Survey points to a more measured outlook among households.
The proportion of consumers intending to purchase a vehicle within the next three months declined from 22% in Q1 to 19% in Q2. The decline was most pronounced among lower- and middle-income households, while purchase intent among higher-income households increased from 24% to 27%.
Importantly, this moderation should not be interpreted as weakening demand. Rather, it suggests consumers are becoming more deliberate as affordability pressures intensify.
The continued strength in vehicle sales indicates that vehicle ownership remains a priority for many South Africans. However, consumers are increasingly focused on achieving the right balance between affordability, reliability and long-term value.
Hybrid Vehicles Gain Momentum
The same practical mindset is shaping attitudes towards vehicle technology. While internal combustion engine vehicles continue to dominate the market, hybrid vehicles have emerged as the preferred route to electrification. According to the report, 45% of consumers now consider hybrid vehicles when evaluating their next purchase, making them the most attractive electrified vehicle option in South Africa.
Rising fuel costs, concerns around charging infrastructure and growing awareness of operating expenses are encouraging consumers to seek greater efficiency without compromising convenience.
"South Africa's mobility transition is likely to follow a distinctly local path. Consumers want lower running costs and greater efficiency, but practicality remains paramount. Hybrid technology offers a compelling middle ground between affordability, convenience and sustainability.”
"As automotive customer journeys become increasingly digital, businesses need to connect identity, device, behavioural and financial intelligence to distinguish legitimate customers from higher-risk activity without adding friction to the customer experience," adds Hatea.
Value Will Define the Next Phase of Growth
Despite a more challenging outlook for households and businesses, the report suggests the underlying fundamentals supporting vehicle demand remain intact.
For OEMs, dealers, financiers and insurers, future growth opportunities will increasingly depend on their ability to meet consumer expectations around affordability, convenience and efficiency. Organisations that can help consumers navigate a constrained economic environment through competitive pricing, flexible financing solutions and lower-cost mobility options will be better positioned to respond to demand.
Growth, however, must be supported by intelligent risk management. Traditional verification approaches are increasingly being complemented by layered fraud prevention capabilities that connect identity, device, behavioural, financial and regulatory signals. This helps organisations identify higher-risk activity earlier while reducing friction for legitimate customers.
"The South African vehicle market continues to demonstrate resilience, but success in the next phase of growth will depend on understanding a more selective and value-driven consumer," concludes Hatea. “The ability to deliver affordability, efficiency, trust and long-term value will increasingly determine which brands and businesses succeed in the market.”
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TransUnion Appoints Yolande Chirwa as Chief Human Resources Officer for Africa
TransUnion, a global information and insights company, announces the appointment of Yolande Chirwa as Chief Human Resources Officer (CHRO) and Vice President for its Africa operations which include both TransUnion Africa and its Global Capability Centre (GCC) in Africa. In her new role, she will lead TransUnion’s human capital strategy across the region, focusing on strengthening organisational capability, advancing talent development and fostering a high-performance, inclusive culture aligned with the company’s long-term growth ambitions.
Yolande joins TransUnion with more than 20 years of pan-African leadership experience across regulated, high-growth and transformation-driven environments. She most recently served as Vice President and Head of HR Africa at Cipla Pharmaceuticals, where she led the people strategy across multiple markets, driving organisational transformation, strengthening succession planning and regional integration initiatives.
Her previous leadership roles at BetKing, AB InBev and SABMiller Africa saw her play a pivotal role in shaping workforce strategies, building talent pipelines and supporting business expansion, including greenfield operations and market entry initiatives. Known for her ability to align people strategies with broader business priorities, she has helped organisations achieve ‘Top Employer’ and ‘Great Place to Work’ certifications.
“Yolande’s appointment comes at an important time as we continue to strengthen our organisation to deliver on our vision for Africa,” said Lee Naik, regional president and chief executive officer of TransUnion Africa.
“Her deep experience across diverse markets, combined with her proven ability to translate strategy into measurable outcomes, will be instrumental as we scale our talent, capabilities and culture across both our Africa operations and Global Capability Centre. As we expand access to information and unlock greater economic opportunity, our people remain at the heart of our success and central to delivering on our commitment.”
“We are excited to welcome Yolande to TransUnion. Her proven track record of building high-performing teams and leading transformation across Africa will be invaluable as we continue to grow our talent and capabilities across both GCCA and TransUnion Africa. I look forward to partnering with her to further strengthen our people-first culture,” said Shobana Maikoo, Head of Global Capability Centre Africa.
“I am honoured to join TransUnion at such a pivotal time in its journey across Africa,” said Yolande Chirwa. “TransUnion’s purpose of expanding access to information and insights to create economic opportunity resonates deeply with me. I look forward to partnering with our leadership teams to strengthen organisational capability, grow and develop our talent, and continue to build an inclusive, high-performance culture that enables our people and our business to thrive. Together, we will continue to position TransUnion as an employer of choice and a catalyst for sustainable growth across the region.”
Yolande will prioritise enabling effective change and transformation leadership across the business, ensuring teams are equipped to navigate an evolving and increasing digital landscape. In addition, Yolande will focus on optimising total rewards and the employee value proposition to attract and retain top talent, while elevating the HR function as a strategic business partner, leveraging data-driven insights to align people strategy with commercial objectives. Through this, she will play a critical role in building a resilient, agile and future-ready workforce positioned to support TransUnion Africa’s next phase of growth.
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South Africans Under Strain as Inflation Persists
- 79% of South Africans ranked inflation among their top three household financial concerns, up from 74% a year ago
- Financial optimism fell to 66% from 71% in Q2 2025, while 39% expect to miss at least one current bill or loan repayment
- 92% view access to credit as important, but only 36% plan to apply for new credit or refinance, while 45% abandoned applications
South African consumers are facing sustained financial strain, with nearly four in ten (39%) expecting to miss at least one bill or loan repayment, according to TransUnion’s Q2 2026 Consumer Pulse Study (CPS). Persistently high inflation continues to reshape how households spend, borrow and save, driving more cautious financial behaviour and softer optimism.
The findings point to a consumer environment marked less by recovery and more by ongoing adjustment. While many households remain financially active, their ability to absorb additional pressure is narrowing, with affordability constraints increasingly shaping everyday decisions.
“Consumers are still managing, but the margin for error is shrinking,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “Even modest increases in essential costs are forcing difficult trade-offs, which is reflected in lower confidence and more cautious credit behaviour.”
Financial Pressure Persists as Optimism Declines
Household finances remain under pressure, with mixed signals pointing to continued strain. In Q2 2026, 43% of South Africans said their household finances were better than planned, down slightly from 44% in Q2 2025. At the same time, 40% said their finances were worse than planned, pointing to persistent pressure rather than a clear recovery trend.
Forward-looking sentiment softened more noticeably. Financial optimism declined to 66%, down from 71% in Q2 2025, while pessimism increased to 19% from 15%. Income expectations also weakened, with 70% of consumers expecting their household income to increase over the next 12 months, compared to 75% a year ago.
A key driver of this shift is the widening gap between income growth and rising living costs. Only 37% of consumers believed their income was keeping up with inflation, while 41% disagreed. Inflation for everyday goods, including groceries and fuel, remained the dominant household concern, ranking among the top three worries for 79% of respondents.
This imbalance is increasingly affecting liquidity, which underscores the extent to which cost pressure continues to affect monthly cash flow and raise the risk of missed payments.
“Inflation remains the single biggest pressure point for households. Even where incomes are rising, essential costs quickly absorb that relief. This makes budgeting discipline and financial awareness more important, because households need to know where they can adjust when pressure rises,” said Hatea.
Households Cut Discretionary Spend to Stay Afloat
In response, South Africans are making practical adjustments to their household budgets. More than half of consumers (53%) said they had cut back on discretionary spending such as dining out, travel, and entertainment over the past three months. A further 28% cancelled subscriptions or memberships, while 24% cancelled or reduced digital services such as wireless, cable TV, or internet.
Debt and savings behaviour also reflect caution. Around 32% of consumers said they had paid down debt faster, 27% saved more in an emergency fund or stokvel, and 20% saved more for retirement. At the same time, 14% cut back on retirement savings, 14% increased their use of available credit, and 13% used their retirement savings, signalling that financial resilience is uneven and for some, deteriorating.
Looking ahead, consumers expect essential categories to remain under pressure. Over the next three months, 37% expect their spending on bills and loans to increase, while 33% expect higher spending on medical care and services. Around 36% expect to increase contributions to retirement funds or investments, although 16% expect to decrease spending in that category.
“These findings show how carefully households are trying to manage trade-offs. Some consumers are still building buffers and paying down debt, while others are drawing on savings or credit to get through the month. That is why the broader picture is one of sustained financial adjustment rather than simple improvement,” said Hatea.
Consumers Want Credit but Few Are Willing to Apply
Credit remains a critical financial tool, but engagement is becoming more selective. The study found that 92% of South Africans view access to credit and lending products as important to achieving their financial goals, unchanged from a year ago. Perceptions of access improved, with 45% believing they have sufficient access to credit, up from 38% in Q2 2025. Around half (50%) of consumers believe they would be approved if they applied.
However, this confidence is not translating into increased demand. Only 36% plan to apply for new credit or refinance existing credit in the next 12 months, broadly unchanged year-over-year (YoY). Among those who considered applying for credit or refinancing, 45% ultimately abandoned their plans.
Cost remains the largest barrier, cited by 30% of consumers who abandoned applications. Credit history was cited by 23%, while 22% pointed to income or employment status. This suggests that while consumers still recognise the importance of credit, many remain cautious about taking on new commitments.
“Credit demand has not disappeared, but consumers are becoming more selective about the obligations they take on. For many households, access is not only about whether credit is available. It is also about whether the cost, repayment terms and approval process feel manageable,” said Hatea.
Where consumers do plan to apply, demand is shifting toward shorter-term and more flexible products. Among those planning new credit or refinancing activity, 34% intend to apply for a new personal loan, up from the previous quarter, while 29% plan to apply for a new credit card. A further 27% plan to use buy now, pay later services.
Fraud Exposure Rising as Digital Use Expands
Digital channels are also playing an increasingly important role in financial participation. Of the 30% who said they used digital banking services, around 46% reported using a digital bank, 56% used buy now, pay later services, and 23% engaged with digital or FinTech providers. This points to continued demand for speed and convenience, alongside the need for clear, responsible credit information.
As digital financial activity grows, identity protection remains an important concern. Around 56% of consumers reported being targeted by online, email, phone call, or text message fraud attempts in the past three months.
Among those targeted, the most common schemes were vishing (34%), smishing (33%), and phishing (31%). The study also found that 26% of consumers had been notified in the past three months that details about their identity or online accounts had been compromised in a data breach.
Consumers are taking some protective steps. In the past 60 days, 53% changed passwords because of cybersecurity concerns, 37% checked their credit reports, and 12% purchased internet security, anti-virus, or anti-malware protection. Yet uncertainty remains a barrier. Among consumers who took no action despite cybersecurity concerns, 56% said they were overwhelmed by what to do.
“As digital financial participation increases, security becomes a core part of financial confidence. Consumers need clear, practical guidance on how to protect their information and respond effectively when risks arise,” said Hatea.
Consumers Seek Control Amid Ongoing Financial Strain
Despite ongoing challenges, South African consumers remain financially engaged and active. Around 34% monitor their credit reports monthly, 13% weekly, and 6% daily. More than half (52%) believe their credit score would improve if businesses used information not found on standard credit reports, such as rental payments, short-term loan history, and buy now, pay later loans.
This reflects a broader shift toward financial visibility, as consumers look for tools and information to better manage their financial position in an uncertain environment.
The Q2 2026 Consumer Pulse Study highlights a market that is resilient but increasingly constrained. Households are adjusting spending, managing debt carefully, and seeking greater control, but persistent cost pressures are testing their capacity to absorb shocks.
“Consumers are doing their best to stay in control in a difficult environment,” Hatea concluded. “For lenders and financial service providers, the opportunity lies in supporting that effort, through transparent pricing, responsible access to credit, and tools that help consumers anticipate and manage financial stress before it escalates.”.
Consumers can get their free annual credit report from TransUnion here.
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