Financial Literacy Is Infrastructure: Rethinking Financial Inclusion in South Africa

By Yinka Yomi-Tokosi, Executive: Strategy & Investments, Access Bank South Africa

By the time many South Africans are paid, the money is already being pulled in several directions: transport, food, electricity, school costs, data, debit orders, debt repayments, and the unexpected expense that did not wait for payday.

In that moment, financial decisions have immediate consequences. A person may need to decide whether to take out credit or delay a payment. The margin for error is small, and the consequences can last long after the decision has been made. That is why I believe financial literacy should be treated as infrastructure in South Africa, in the same way we treat roads, electricity, and broadband as things a functioning economy depends on.

What is financial literacy?

Financial literacy is the ability to understand and use financial information to make informed decisions about money. In practice, it covers knowing what a financial product costs, how interest accumulates, what a debit order is, how a credit record works, how to budget against income, and how to recognise a scam before money leaves your account.

Financial education is the process that builds that ability. Financial capability is what a person can actually do with it when a real decision is in front of them. All three matter, and all three are currently uneven across the South African population.

Access to a bank account is only the starting point of financial inclusion

We often speak about financial inclusion in terms of access. Does someone have a bank account? Can they receive money digitally? Can they apply for credit? Can they transact without cash? These are important questions, but they are not enough. Access only becomes meaningful when people understand what they are using, what it costs, what risks it carries, and what choices they have.

A customer can have a bank account and still feel excluded from the financial system. They may not understand why fees were charged, how interest accumulates, what a debit order means, why a credit score matters, or how to identify fraud. The product may be there, but confidence is missing.

This is one of the reasons transparency around pricing matters so much. When a customer can see exactly what an account costs before they open it, the relationship starts on more even ground. Our banking rates and fees are published for that reason, and our personal banking accounts are structured to be understood without a glossary.

What South Africa’s National Consumer Financial Education Policy signals

This is not a small issue. National Treasury’s draft National Consumer Financial Education Policy, released for consultation in 2026, recognises financial education as part of building financial capability, improving financial wellbeing, and supporting trust in an increasingly digital financial system.

That policy direction is important because South Africa’s access challenge has changed. We are no longer only dealing with the question of whether people can enter the formal financial system. We are dealing with whether they can use it safely, confidently, and in ways that leave them better off.

At Access Bank South Africa, we believe banking should be understood as easily as it is accessed. Explore our banking solutions.

What the FinScope 2024 data shows about household debt in South Africa

Debt pressure reinforces this point. FinMark’s Trust 2024 FinScope Consumer South Africa findings, released last year, reported that 75% of adults who borrowed in the previous year used credit to cover essentials such as food, while an estimated 12 million adults were over-indebted.

That is not a story about careless borrowing. It is a story about households using credit to cope when income does not stretch far enough.

Financial literacy cannot solve the cost-of-living crisis on its own, and we should be honest about that. But it can help people understand the true cost of borrowing, compare options more carefully, avoid harmful credit choices, and ask for help before debt becomes unmanageable.

Why practical financial education works better than theory

In retail banking, I see that education works best when it is practical. People do not need abstract lessons about financial wellbeing while they are trying to decide whether they can afford groceries, school shoes, transport, and a repayment in the same week. They need clear information that speaks to the decisions in front of them.

That includes understanding how income differs from available money, how short-term relief can become long-term cost, how to tell a legitimate bank message from a scam, and when credit supports a need rather than deepening financial pressure.

Digital banking fraud in South Africa: what the 2024 numbers show

Fraud has made this even more urgent. SABRIC’s 2024 annual crime statistics reported that digital banking fraud accounted for 65.3% of reported incidents, with cases rising from 31,612 in 2023 to 64,000 in 2024 and losses increasing from R1 billion to more than R1.4 billion. SABRIC also noted that these incidents were driven by social engineering that exploited human behaviour, rather than by technical compromises of banking platforms.

Digital trust is not built through technology alone. It also depends on whether people understand the risks that surround the technology.

How to recognise a banking scam

A customer who knows that a bank will never ask for a PIN or a one-time password is better protected, especially when that knowledge is reinforced by a few simple habits:

• Treat any request for your PIN, password, or one-time password as fraudulent, whatever the caller or message claims.
• Verify messages independently. Contact the bank on a number you have looked up yourself, not one supplied in the message.
• Pause before clicking links, particularly in SMS, email, or WhatsApp messages you did not expect.
• Recognise urgency as a tactic. Pressure to act immediately is one of the most reliable signals that something is wrong.
• Report suspected fraud straight away. Speed limits the damage.

Our Security Centre sets out the current fraud tactics in circulation and how to report an incident. It is also worth understanding how deposit protection through CODI works, because knowing what is protected is part of banking with confidence.

Financial education has to be built into everyday banking

This is why financial literacy cannot be treated as a once-a-year campaign or a brochure handed out in a branch. It has to be built into how the financial system communicates with people. That means clearer language, practical warnings, and education that reaches people in the channels they already use, at the moments when decisions are actually being made.

Who is responsible for financial education in South Africa?

Banks have a responsibility here, but they are not the only institutions that matter. Schools, employers, community organisations, regulators, media platforms, and families all shape how people learn about money. The stronger the shared education layer, the more likely people are to use financial services with confidence rather than suspicion or fear.

Trust grows when people understand what they are using. Over time, that confidence can shape better decisions, whether someone is saving regularly, borrowing more carefully, transacting safely, or building a small business.

Turning access into control

Financial literacy is not a soft add-on to inclusion. It is what helps people turn access into control. A bank account, credit product, or digital channel only starts to matter when people can use it with confidence.

Frequently asked questions about financial literacy in South Africa

What is financial literacy?

Financial literacy is the ability to understand and use financial information to make informed money decisions. It includes understanding fees, interest, debit orders, credit records, budgeting, and how to identify fraud.

Why is financial literacy important in South Africa?

Because access to financial products has grown faster than understanding of them. FinScope 2024 findings indicate that 75% of adults who borrowed in the previous year used credit for essentials, and an estimated 12 million adults were over-indebted. Understanding the true cost of credit changes the decisions people make.

What is the difference between financial inclusion and financial literacy?

Financial inclusion measures whether people can access financial services such as a bank account, digital payments, or credit. Financial literacy measures whether they understand and can use those services confidently. Inclusion without literacy leaves people holding products they do not fully understand.

How can I protect myself from banking fraud in South Africa?

Never share your PIN, password, or one-time password. Verify any message by contacting your bank on a number you have looked up independently. Avoid clicking unexpected links, treat urgency as a warning sign, and report suspected fraud immediately. SABRIC’s 2024 statistics show most digital banking fraud relies on social engineering rather than technical breaches, which means informed customers are meaningfully harder to defraud.

What is the National Consumer Financial Education Policy?

It is a draft policy released by National Treasury for consultation in 2026. It recognises financial education as central to building financial capability, improving financial wellbeing, and supporting trust in a digital financial system.

Whose responsibility is financial education?

It is shared. Banks, schools, employers, community organisations, regulators, media platforms, and families all shape how people learn about money. A stronger shared education layer produces customers who use financial services with confidence.