Beyond Profit: How South African Companies Are Closing the Financial Literacy Gap

In a country where only 5% of citizens can expect to retire comfortably and nearly half the adult population struggles with basic financial concepts, South African companies in fintech sphere are recognizing that financial literacy isn’t just a personal problem—it’s a national crisis requiring governmental and corporate intervention.

The most forward-thinking of these businesses aren’t waiting for government solutions. Instead, they’re leveraging their resources, expertise, and community connections to transform financial understanding across the country. These initiatives go far beyond traditional corporate social responsibility (CSR), creating measurable impact while building stronger relationships with the communities they serve.

Old Mutual’s On The Money: Transforming Township Economies

When Old Mutual launched its On The Money program in 2007, the company couldn’t have anticipated its eventual scale. What began as workshops in a few communities has expanded to reach over 1.2 million South Africans, with particularly strong impact in township economies.

“We designed the program around basic principles that work regardless of income level,” explains Ntombi Mhlongo, Old Mutual’s head of financial education. “The results have been transformative not just for individuals but for entire communities.”

Independent impact assessments by the University of Cape Town demonstrate the program’s effectiveness. Participants show a 43% increase in regular saving behavior within six months, and a 37% reduction in the use of informal lenders. Perhaps most significantly, 22% of participants report starting small businesses within a year of completing the program.

“I never thought financial education would lead to entrepreneurship,” notes Mhlongo, “but when people understand money management, they gain the confidence to pursue business ideas they’ve been holding back.”

From Customers to Advocates: FNB’s Community Banking Hubs

First National Bank took a different approach by embedding financial education directly into its branch strategy through Community Banking Hubs. These specialized facilities in underserved areas combine traditional banking services with ongoing financial education programs.

“We realized people didn’t need just access to banking—they needed to understand how to use it effectively,” says Thabo Makoko, FNB’s director of financial inclusion. “Our hubs create spaces where community members can learn everything from basic budgeting to investment principles in their own languages.”

The results speak for themselves: communities with Banking Hubs show a 34% higher rate of formal account usage and a 28% reduction in informal lending compared to similar communities without hubs. The program’s success has led FNB to increase its commitment, with plans to open 50 additional hubs by 2026.

What makes this initiative particularly effective is its continuity. Rather than one-off workshops, community members engage in ongoing learning relationships with dedicated financial educators who understand local economic conditions.

Starting Young: Capitec’s Financial Literacy Foundation

Recognizing that financial habits form early, Capitec Bank established its Financial Literacy Foundation with a singular focus: reaching South African youth before poor financial habits develop.

“By the time many South Africans encounter financial education, they’re already dealing with credit problems, debt traps, or inadequate savings,” explains Dr. Lungi Nyathi, the foundation’s director. “We believed intervention needed to start much earlier.”

The foundation partners with schools to deliver age-appropriate financial education from primary through secondary levels. Its curriculum, developed in collaboration with the Department of Basic Education, has reached over 850,000 students across 1,200 schools.

What distinguishes Capitec’s approach is its measurement framework. The foundation tracks not just program delivery metrics but actual behavioral outcomes, following cohorts of students into early adulthood to assess lasting impact. Early results show participating students are 27% more likely to have savings accounts and 41% less likely to use credit for everyday expenses compared to non-participants.

Digital Scale: MTN’s Financial Literacy App

When MTN, South Africa’s largest mobile network operator, decided to address financial literacy, it leveraged its core strength: technology. The company developed MoMoney, a mobile learning application that delivers financial education through bite-sized, gamified lessons accessible even on basic smartphones.

“We knew traditional workshops couldn’t reach millions of South Africans quickly enough,” says Nomsa Phiri, MTN’s head of financial services. “Digital delivery allows us to scale rapidly while personalizing content based on user needs.”

The app has been downloaded over 3.2 million times, with users completing an average of 14 lessons. Independent assessment by the Centre for Financial Regulation and Inclusion shows app users demonstrating 31% better financial decision-making in simulated scenarios compared to control groups.

What makes MTN’s approach particularly valuable is its accessibility. The app functions even with limited data availability and offers content in all 11 official South African languages, reaching populations often excluded from traditional financial education programs.

Personal Focus: Wonga South Africa’s Money Academy

While many corporate initiatives target consumers, Wonga South Africa recognized a critical gap in financial education for small business owners and aspiring entrepreneurs. The company’s digital Academy provides specialized training focusing on the intersection of personal and business finances.

“Many small businesses fail not because their core business isn’t viable, but because owners struggle to separate personal and business finances,” explains Brett van Aswegen, CEO of Wonga South Africa. “Our academy addresses this specific knowledge gap.”

The program’s online learning curriculum covers topics from cash flow management to accessing formal business financing. Since its launch, thousands have completed the program.

What distinguishes this initiative is its focus on practical application alongside theory. Participants develop actual knowledge of financial management systems.

Measuring What Matters: Beyond Participation Numbers

The most effective corporate financial literacy initiatives share a crucial characteristic: rigorous impact measurement that goes beyond simple participation metrics. Leading companies now track behavioral changes, financial outcomes, and community-level economic indicators.

This shift from output to outcome measurement represents a maturation of corporate approaches to financial literacy. Rather than counting workshop attendees or distribution numbers, companies increasingly ask: “Did this intervention actually change financial behaviors and outcomes?”

The FCA has recognized this evolution by developing standardized impact measurement frameworks for corporate financial literacy programs, allowing for meaningful comparison across initiatives.

The Business Case for Financial Literacy

While these initiatives fall under CSR, companies are increasingly recognizing direct business benefits from financial literacy programs:

Reduced credit risk: Financially educated customers demonstrate better repayment behavior and appropriate product utilization.

Brand loyalty: Participants in financial education programs show significantly higher brand trust and loyalty metrics.

Employee productivity: Staff members receiving financial education report lower financial stress and higher workplace focus.

Market expansion: As more South Africans become financially capable, the addressable market for formal financial services expands.

“Financial literacy isn’t charity—it’s strategic business development with positive social externalities,” notes economist Duma Gqubule. “Companies investing in financial literacy today are developing their customer base of tomorrow.”

Collaboration Over Competition

Perhaps the most promising trend is the emergence of collaborative financial literacy initiatives that transcend corporate competition. The Banking Association South Africa now coordinates a Financial Literacy Coalition where member institutions share resources, methodologies, and measurement frameworks.

This collaborative approach recognizes that financial literacy represents a pre-competitive space where shared progress benefits all participants in the financial ecosystem. By pooling resources and expertise, these companies achieve greater impact than any single organization could independently.

As South Africa continues working toward broader financial inclusion, corporate financial literacy initiatives have evolved from peripheral CSR activities to core business strategies with measurable social impact. By addressing the knowledge gap between financial access and effective financial usage, these companies are helping build a more financially capable South Africa—one person, one family, and one community at a time.