The consumer lending landscape in South Africa is poised to benefit from favourable economic conditions, which are expected to lead to lower interest rates during the forecast period. These conditions will be shaped by a steady return of inflation to the central bank’s target range of 3-6%, an influx of younger consumers entering the workforce, and increased spending confidence amongst middle-income groups.
Digitalisation is expected to continue to reshape the landscape of consumer lending in South Africa by becoming the primary point of contact between borrowers and lenders. This trend will be further enhanced by improvements in connectivity, reduced data costs, and the full integration of fintechs into the banking system, granting them access to essential clearing and settlement processes.
The demand for informal loans surged during the review period due to rising living costs, pushing formal micro-lenders to become more risk-averse amidst challenging economic conditions. Therefore, when the National Credit Bureau indicated that up to 4,000 micro-lenders were at risk of losing their licenses due to non-compliance, it raised concerns that these operators might migrate to the informal market.
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Understand the latest market trends and future growth opportunities for the Consumer Credit industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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Consumer Credit
Non-mortgage consumer debt extended to individuals for personal or household use including installment loans and credit cards. Examples of consumer credit include auto lending, card lending, durables lending, education lending, home lending and other personal loans. Consumer credit includes both revolving and non-revolving credit.
See all of our definitionsThis report originates from Passport, our Consumer Credit research and analysis database.
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