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As South Africa continues to make strides in financial inclusion, FNB believes progress now depends on ensuring that credit access is responsible, sustainable and supported by practical customer guidance
For years, financial inclusion efforts have focused on bringing more people into the formal financial system. While this has significantly broadened access to banking products, savings, insurance and credit, a new challenge has emerged: how to responsibly support first-time credit users and customers returning to credit after financial difficulty.
According to Thabiso Tshabalala, Credit Card Product Head at FNB, the financial services industry needs to place greater emphasis on how customers can build their credit profiles, access credit responsibly and receive support when returning to credit after financial difficulty.
“Access to credit is important, but access alone is not enough. The real question is how we create pathways that allow customers to build healthy, sustainable relationships with credit over time. Responsible lending isn’t simply about making credit available. It’s about helping customers understand it, manage it effectively and use it in ways that support their long-term financial wellbeing,” says Tshabalala.
For customers with established credit histories, lenders can often rely on years of repayment behaviour when making lending decisions. However, the picture is less clear for first-time credit users or customers whose circumstances have improved following a period of financial difficulty.
This often creates what Tshabalala describes as the ‘credit catch-22’.
“To build a credit profile, customers need an opportunity to demonstrate responsible credit behaviour. Yet, in many cases, one needs a credit profile before they can access that opportunity. For customers returning after financial difficulty, the challenge is assessing where they are today while still maintaining sound lending practices.
Tshabalala is clear that the answer is not to lower credit standards or encourage more borrowing at a time when many households face ongoing financial pressure.
“Affordability and creditworthiness assessments remain fundamental to responsible lending. Credit should never be positioned as a solution to financial distress. What we should be focusing on is creating appropriate and responsible entry points into the credit system for qualifying customers. This includes banks reviewing the old ways of assessing customers who are completely new to credit or seek to access credit after successfully traversing a financially challenging period.”
FNB believes that financial inclusion should be measured not only the number of people who can access financial products, but by whether that access helps customers participate with greater knowledge, confidence and support.
By combining responsible lending practices with practical financial education, transparency and ongoing customer support, the bank aims to help customers strengthen their financial resilience, make informed financial decisions and build better long-term outcomes.
This means ensuring that customers understand the cost of credit, the effect of repayment behaviour on their credit profiles, and the borrowing limits that are appropriate for their circumstances.
“Customers should leave the process with more than a credit facility. They should leave with a better understanding of how credit works, what it costs and how to manage it responsibly. That’s a critical part of responsible lending,” Tshabalala explains.
At FNB, this philosophy informs the design of credit products aimed at customers who are building or rebuilding their credit profiles. The focus is on structured limits and practical guidance, giving customers an opportunity to demonstrate responsible repayment behaviour while gaining experience in managing credit.
Moreover, the bank views responsible credit use as one component of a broader financial journey that also include saving, protection, transactional banking and long-term planning
The bank notes that South Africa’s unique socio-economic context makes this approach particularly important because customers enter the formal financial system with different levels of experience, confidence and exposure to credit.
“Not everyone starts from the same financial position. Many South Africans have not had the benefit of learning about credit and financial products through family experience or exposure. If we’re inviting more people into the formal credit system, the rules of that system should not feel like privileged knowledge. Customers deserve information that is clear, practical and easy to understand.”
Financial education alone cannot solve broader economic challenges such as unemployment, income pressures or rising living costs, but it can help remove barriers that make financial decision-making more difficult.
“We often talk about financial inclusion in terms of access, but true inclusion is also about helping customers understand the choices in front of them. They should know what a credit limit means, when borrowing may or may not be appropriate, and how affordability assessments shape the credit they are offered. Our focus is on appropriate credit limits based on each customer’s individual circumstances and affordability assessment.”
Looking ahead, Tshabalala believes financial institutions have an important role to play in helping customers establish positive long-term relationships with credit.
“A first credit product may seem small, but the track record built through it can influence future opportunities over time. Our responsibility extends beyond whether a customer qualifies today. We must also help customers understand that a good credit record is an important financial asset, helping them to see that by making repayments on time and managing credit responsibly, they can build a track record of responsible credit behaviour. Over time, this may support future financial opportunities and help them make informed decisions about their financial future.
As South Africa’s financial inclusion journey evolves, FNB believes creating responsible access into credit, supported by practical guidance and education, can help more customers participate more confidently in the economy.
“When supported by responsible borrowing habits and sound financial decision-making, credit can also contribute to greater financial resilience and long-term financial wellbeing,” concludes Tshabalala.
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