Getting access to credit is often treated as the finish line. For many South Africans, however, it is only the beginning.
As financial inclusion continues to expand access to banking products, savings, insurance and credit, FNB says the next challenge is making sure customers can enter or re-enter the credit system responsibly, with the knowledge and support needed to manage it.
For first-time credit users, as well as people rebuilding their finances after a difficult period, establishing a credit profile can be complicated.
According to Thabiso Tshabalala, Credit Card Product Head at FNB, responsible credit access requires more than simply making credit available.
“Access to credit is important, but access alone is not enough.”
Tshabalala says financial institutions should focus on creating pathways that allow customers to develop healthy and sustainable relationships with credit over time.
The credit catch-22
For customers with established credit histories, lenders can assess years of repayment behaviour when considering applications.
First-time borrowers do not have that history.
Customers returning to credit after financial difficulty can face a different challenge. Their previous circumstances may no longer reflect their current financial position, yet lenders still need to make responsible decisions based on affordability and creditworthiness.
Tshabalala describes this as a “credit catch-22.”
To build a credit profile, customers need an opportunity to demonstrate responsible credit behaviour. Yet, in many cases, having an existing credit profile is part of what enables access to that opportunity.
For people rebuilding after financial difficulty, the question becomes how lenders can assess where a customer is today while maintaining sound lending practices.
FNB says the answer should not be to reduce credit standards or encourage borrowing when households are already under financial pressure.
Responsible access, not simply more access
According to Tshabalala, affordability and creditworthiness assessments remain fundamental to responsible lending.
Credit, he stresses, should never be positioned as an answer to financial distress.
Instead, FNB says the focus should be on appropriate entry points into the credit system for qualifying customers.
This includes reconsidering traditional approaches to assessing people who are new to credit or who are seeking to rebuild their credit position after successfully navigating a financially challenging period.
The distinction is important.
Financial inclusion is not simply about how many people can access financial products. FNB believes it should also consider whether customers have the knowledge, confidence and support to use those products appropriately.
Understanding the cost of credit
For FNB, responsible lending also involves helping customers understand what they are signing up for.
That means knowing the cost of credit, understanding how repayment behaviour can affect a credit profile and recognising what borrowing limits may be appropriate for an individual’s circumstances.
“Customers should leave the process with more than a credit facility,” Tshabalala explains. “They should leave with a better understanding of how credit works, what it costs and how to manage it responsibly.”
The idea puts financial education alongside access.
A customer may receive credit, but understanding how that credit works can influence how responsibly it is managed.
Structured limits and practical guidance
FNB says 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 qualifying customers an opportunity to demonstrate responsible repayment behaviour while gaining experience managing credit.
The bank also views credit as only one part of a broader financial journey.
Saving, protection, transactional banking and long-term financial planning all form part of that wider picture.
This matters in South Africa, where customers enter the formal financial system with different levels of financial experience, confidence and exposure to credit.
Making financial knowledge easier to access
Tshabalala says not every customer starts from the same financial position.
Some South Africans may not have had opportunities to learn about credit and financial products through family experience or previous exposure to the formal financial system.
“If we’re inviting more people into the formal credit system, the rules of that system should not feel like privileged knowledge,” he says.
For FNB, this means information should be clear, practical and easy to understand.
Financial education cannot resolve wider economic pressures such as unemployment, income challenges or rising living costs. However, the bank says it can help remove some of the barriers that make financial decisions harder.
Customers, according to Tshabalala, should understand what a credit limit means, when borrowing may or may not be appropriate and how affordability assessments influence the credit they are offered.
FNB says its focus is on appropriate credit limits based on each customer’s individual circumstances and affordability assessment.
A first credit product can become part of a bigger financial story
Building credit is ultimately about more than obtaining a first facility.
Tshabalala says the repayment record created through an initial credit product can influence future financial opportunities over time.
“Our responsibility extends beyond whether a customer qualifies today,” he says.
The emphasis is therefore on helping customers understand the long-term value of responsible credit behaviour.
Making repayments on time and managing credit responsibly can help customers build a track record of responsible repayment behaviour. Over time, that record may support future financial opportunities and help customers make more informed decisions about their financial futures.
It is a shift in the conversation from simply asking “Can I get credit?” to understanding “How can I manage credit responsibly?”
Moving financial inclusion forward
As South Africa’s financial inclusion journey develops, FNB believes responsible access to credit needs to be supported by education, transparency and practical guidance.
The goal, according to the bank, is to help qualifying customers participate in the formal credit system with greater understanding and confidence while maintaining responsible lending standards.
For customers starting from scratch or rebuilding after financial difficulty, the journey may begin with a relatively small credit product.
But the habits built along the way can become part of a much larger financial picture.
“When supported by responsible borrowing habits and sound financial decision-making, credit can also contribute to greater financial resilience and long-term financial wellbeing,” Tshabalala concludes.
