South African consumers are increasingly relying on existing credit facilities and turning to short-term borrowing to cope with mounting financial pressure.
South African consumers are increasingly relying on existing credit facilities and turning to short-term borrowing to cope with mounting financial pressure, according to TransUnion's South Africa Industry Insights Report for the first quarter of 2026, released on Tuesday.
The report shows a credit market that remains active but is becoming increasingly divided. Traditional banks are tightening lending standards and improving the quality of their loan books, while non-bank lenders and retail credit providers are extending more credit to financially vulnerable consumers seeking immediate liquidity.
"South Africa's Q1 2026 insights highlight a credit landscape that remains active but increasingly segmented," said Ayesha Hatea, Director of Research and Consulting at TransUnion South Africa.
"While demand for credit persists, affordability constraints are reshaping how consumers borrow, with greater reliance on short-term liquidity and higher-risk products."
