Nedbank, one of South Africa’s largest banks, is turning to artificial intelligence to expand lending to millions of customers who have traditionally fallen outside the reach of formal credit.
The Johannesburg-based lender has partnered with JUMO, a fintech infrastructure company, to launch Nedbank Quick Loans, an AI-powered lending product embedded within the Nedbank Money App. Customers can apply for loans from as little as R500 ($27) and receive credit decisions within minutes, with repayment terms ranging from one to 12 months.
The partnership indicates a broader shift in African banking, with lenders increasingly turning to fintechs and AI to reach customers that conventional credit models have struggled to serve.
The real test will not be how much money the partnership lends, but whether it can profitably offer fair, transparent credit to millions of low-income and thin-file borrowers who have historically relied on loan sharks, payday lenders and other informal lenders.
“By embedding JUMO’s AI-led proprietary models and processes into Nedbank’s Money App, we are enabling a quick and easy client experience,” said Mutsa Chironga, Managing Executive for Personal Banking at Nedbank. “It is a great solution for smaller and short-term borrowing needs clients have.”
