On 21 May 2025, FinMark Trust had the honour of hosting Her Majesty Queen Máxima of the Netherlands, in her capacity as the United Nations Secretary-General’s Special Advocate for Financial Health (UNSGSA), at Imbizo Shisanyama, Mall of Thembisa. The visit centred on a community focus group discussion that explored how residents engage with savings and credit, and the financial tools they rely on to navigate daily realities.

The session provided an authentic platform for community members to share their lived experiences, highlighting the interaction between informal and formal financial practices and the real-world challenges that low-income households face.

Grounded insights from the community

Participants included small business owners, an informal moneylender, a social grant recipient, a street vendor, and members of stokvels and burial societies. They responded to key questions on financial health, including:

Income stability and affordability of day-to-day needs.
Access to credit and preferred borrowing channels.
Saving behaviours and tools – both formal and informal.
Challenges in accessing formal banking services, particularly among migrants.
Aspirations for the future and the role of financial services in achieving them.

The feedback they shared aligned closely with findings from the recently launched FinScope South Africa 2024 Consumer Survey, which reveals that while formal financial inclusion is high at 98%, financial health remains a concern, with only 16% of adults classified as financially healthy, down from 24% in 2023. Only 30% of adults reported that their financial situation improved highlighting ongoing economic challenges. The data also shows a growing reliance on credit, with 63% of adults being credit active, and 43% borrowing for food.

Additionally, many people remain heavily cash-reliant: 62% withdraw all their money monthly to transact in cash, and only 54% use online payments or digital platforms to make third-party payments, despite 87% receiving income digitally. These habits reflect the economic pressures on households and the absence of digital ecosystems in township and rural areas, where nearly 60% of adults rely primarily on state grants or financial support from others.

Savings and credit: A lifeline amid vulnerability

The focus group participants spoke honestly about saving through stokvels and burial societies, motivated by trust, accessibility and collective discipline. This is reflected in the latest FinScope results, which show that 58% of South Africans save and only 52% of those who use formal savings products. Many continue to store money at home or use informal channels, with flexibility and immediate access as key motivations.

Credit access for micro-, small and medium enterprises (MSMEs), especially informal businesses, remains a hurdle. Many have never successfully applied for formal loans because of the lack of documentation, due to affordability, or mistrust of formal providers. In contrast, informal moneylenders fill this gap, offering small, urgent loans, often without assessing creditworthiness or maintaining formal records.

This reflects a broader national issue: 45% (or 12 million) of South African consumers show signs of credit distress, and a further 15% (or 4 million) are severely indebted. According to 2024 FinScope findings, 37% (or 16 million) of adults use a combination of formal and informal credit, while 11% (or 5 million) rely exclusively on informal credit sources. While informal credit plays a critical role in financial coping, it presents significant risks and challenges.

A shared vision for inclusive finance

Queen Máxima’s presence brings global attention to the challenges and innovations shaping South Africa’s financial landscape. Her engagement with residents reinforced the urgent need to shift from access alone to solutions that support resilience, empowerment and long-term well-being.

As FinScope 2024 data highlights, there is a growing gap between financial inclusion and financial health, one that calls on financial service providers, policymakers and development partners to co-create financial ecosystems that work for those who are underserved.

At FinMark Trust, we are committed to this vision and proud to share our work and impact, contributing to advancing inclusive finance that leads to real economic empowerment.