South Africa asks banks, insurers for consumer education plans

A top South Africa regulator is planning to require financial institutions to unveil their plans for boosting spending on customer education as it seeks to improve the lives of consumers in a nation where a majority of people live paycheck to paycheck. The Financial Sector Conduct Authority’s new Financial Education Commitment Charter will also require institutions to commit in writing to adhere to international standards for consumer education and prioritise customer protection, Unathi Kamlana, the commissioner of the FSCA, said in an interview. Already, financial institutions across South Africa are expected to spend at least 0.4% of their after-tax profit on financial education. With the new charter — which will apply to the country’s insurers, banks and other financial services providers — they’ll be expected to outline how they actually allocate that spending in writing. The moves come as data show that less than half of all South Africans can withstand a financial setback, according to Sanlam’s 2024 Financial Confidence Index. Consumers across the nation have also fallen victim to the rampant scams that have bedevilled the country, costing them billions of dollars in losses.