FNB goes small to chase big money in SA’s community economy

Johannesburg – FNB is expanding its push into South Africa’s community economy with AI-powered microloans and digital cash advances aimed at customers who need small amounts of money to bridge short-term financial gaps.

The bank has partnered with AI-driven lending technology company Optasia to enhance its eWallet Cash Advance service, allowing qualifying customers to access between R50 and R500 and repay the money over seven, 14 or 30 days.

According to News24, FNB sees the community economy as a potentially R1 trillion market and is using artificial intelligence and customer data to expand access to small-value credit.

Moneyweb reported that Optasia uses proprietary market data and behavioural insights to assess the affordability of low-income and often underbanked customers. The company serves more than 100 million customers globally and is assisting FNB with eligibility assessments for the new lending products.

The enhanced eWallet Cash Advance does not require customers to complete traditional loan applications or visit a branch, with repayments deducted directly from their eWallet.

Prepaid Advance service

FNB has also introduced a Prepaid Advance service through FNB Connect, allowing qualifying customers to access airtime, data and voice bundles and pay later.

FNB CEO Lytania Johnson said the bank was responding to growing demand for accessible financial services.

“Customers are increasingly looking for practical ways to manage unexpected expenses and gaps between paydays, particularly as the cost of living continues to rise,” Johnson said, according to Moneyweb.

She said the partnership with Optasia combined FNB’s digital reach with the fintech company’s lending technology.

“Our partnership with Optasia combines our complementary strengths to solve real customer needs at scale,” Johnson said.

Community economy

FNB has deliberately moved away from describing the market as the “informal economy”, arguing that the term does not capture the scale and sophistication of businesses operating in townships and communities.

Business Day reported that FNB’s community economy revenues increased 14% to R14.2 billion, while deposits and advances grew by 8% and 12%, respectively. The bank has more than 250,000 active business customers in the segment.

FNB CEO Johnson said calling the sector the informal economy “does an injustice to the vibrancy we see in this sector”.

She said advances to small and medium-sized businesses with annual turnover of up to R5 million grew by 31%.

The bank’s eWallet platform provides an important channel into this market. Customers transacted more than R53 billion through eWallet over the past year, while the platform has grown to more than seven million active users in South Africa, according to Moneyweb.

FNB has also made it possible for customers to open an eWallet through WhatsApp by providing their identity number, reducing the need to visit a branch.

The move comes as financial institutions and retailers increasingly target South Africa’s underbanked market. Moneyweb reported that Pepkor is preparing to launch PlusB in 2027, while Shoprite continues expanding its Money Market Account offering.

FNB’s latest strategy therefore combines its large digital customer base with AI-assisted credit assessment to offer smaller loans more quickly, while seeking to expand its reach in a market the bank believes has significant untapped economic potential.