Banks And Fintechs Drive Surge In Ai-approved Loans

On the outskirts of Johannesburg, 45-year-old Grace Ndlovu used to watch her kiosk shelves sit half-empty during slow periods. With no formal credit history, banks wouldn't lend to her. She had no choice but to wait - until last year, when she secured her first loan through MTN's mobile money platform, MoMo, and fintech firm JUMO.

Qwikloan, their lending service powered by so-called artificial intelligence AI, offers short-term credit ranging from R250 13 to R10,000 540, assessing applicants based on mobile money transactions, airtime purchases, and repayment patterns. Approval takes minutes.

"I never thought I'd qualify for a loan," says Ndlovu. "When I need to stock up for busy weekends, I can now get money fast."

Across Africa, AI-driven credit scoring is reshaping financial access. More than 350m adults remain locked out of formal banking, yet digital lenders are approving loans at an unprecedented scale.

This technology is creating opportunities - but also raising concerns. Borrowers often have little idea how their data is used, with credit models factoring in everything from phone usage patterns and personal messages to social media activity, drawing scrutiny from regulators.