As living costs rise, many South Africans are finding it increasingly difficult to build emergency savings, leaving them vulnerable when unexpected expenses arise.
Research by Nedbank reveals consumers’ growing preference for smaller loan amounts over shorter terms for more manageable borrowing solutions. Consumers also prefer loans that offer speed, simplicity and greater financial control amid ongoing economic pressure.
“The findings show that consumers are approaching debt more cautiously, prioritising shorter repayment periods and borrowing only what they need for essential expenses such as education, emergencies and short-term cash flow pressures,” says Mutsa Chironga, managing executive of personal banking at Nedbank. “What we are seeing is a more deliberate and considered approach to borrowing with consumers prioritising smaller, manageable loans without compromising long-term financial stability.”
At the same time, many clients, particularly self-employed individuals and those without traditional proof of income, continue to face barriers when trying to access formal credit through conventional lending models according to Nedbank.
In response to these changing financial realities, Nedbank has launched Nedbank Quick Loans. Nedbank has partnered with JUMO, a fintech with advanced digital and AI capabilities that have already enabled lending to millions across Africa. JUMO’s AI-powered platform enables real-time decision-making, seamless digital onboarding and more inclusive access to short-term credit.
JUMO’s digital lending solution with artificial intelligence (AI), is designed to broaden access to short-term credit in a faster, more inclusive and frictionless way.
“Because Quick Loans is powered by JUMO’s AI-enabled capabilities, it is able to assess affordability in real time using alternative financial data and predictive analytics to create a more holistic view of consumer financial behaviour,” says Chironga. “This enables faster decision-making while responsibly expanding access to formal credit for consumers who may not always fit traditional lending criteria.”
Nedbank Quick Loans is fully digitally, offering loan amounts ranging from R500 to R50 000 without the need to upload documents and offers clients repayment terms between one and 12 months.