The FSCA’s inaugural Consumer Advisory Panel report shows how emerging technologies are redefining consumer protection in finance.(Image created via ChatGPT)
The Financial Sector Conduct Authority’s (FSCA’s) Consumer Advisory Panel has published its inaugural annual report, outlining how digital finance, data insights and consumer intelligence should be used to drive smarter regulation.
The report outlines the financial watchdog’s progress in establishing operations, governance and engagement.
It highlights several key consumer issues the panel has proactively raised with the FSCA for consideration. These include the growing role, impact and regulatory challenges posed by financial influencers (“finfluencers”); the application and implications of artificial intelligence (AI) on finance; access to and cost of payment and banking products and services on ordinary consumers and SMMEs; and the effectiveness of consumer education initiatives.
The Consumer Advisory Panel’s first annual report coincides with broader shifts in the FSCA’s regulatory strategy, which increasingly prioritises digital transformation as a core material issue.
Digital transformation − alongside stakeholder engagement and consumer outcomes − is identified in the report as one of the key drivers shaping regulatory priorities and institutional effectiveness.
This focus reflects an understanding that technology not only enhances access to financial services but also introduces novel risks − from cyber threats and algorithmic bias, to digital exclusion and misinformation − that financial regulators must address proactively, it states.
Consumers in the digital age
One of the emerging themes associated with the panel’s work, and underscored in the report, is the intersection of technology adoption and consumer outcomes across financial markets, it adds. This includes:
Fintech adoption and consumer complexity: As South Africans increasingly adopt digital banking, e-commerce payments and mobile finance apps, consumer experiences vary widely across demographic and skill levels. Integrating real-world consumer feedback helps the FSCA understand not just product uptake but how digital product design impacts understanding, trust and risk exposure.
Data-informed regulation: The FSCA uses a range of digital feedback channels − including customer research, complaints data and social media sentiment − to detect trends in consumer behaviour. The panel’s inputs reinforce the need for analytics to spotlight emerging risks, such as misunderstanding of complex financial products or technology-enabled scams, states the report.
Consumer education in the digital age: With innovation outpacing traditional financial literacy, the report underscores the FSCA’s mandate to scale digital education channels. This includes online tools, social content and targeted outreach to improve digital financial literacy across SA’s diverse population.
“Our mission is to ensure the customer’s voice is not just heard but is instrumental in shaping a financial sector that works for all South Africans,” says Diane Terblanche, chairperson of the panel.
“This report marks a significant first step. By providing a coordinated channel for consumer insights on issues from ‘finfluencers’ to AI, we are strengthening the FSCA’s ability to deliver fair outcomes for customers.”
Created in November 2023, the advisory panel comprises 11 members drawn from regulatory, fintech, consumer education, journalism and financial inclusion backgrounds.
It serves as a dedicated body offering independent consumer viewpoints directly into the FSCA’s regulatory ecosystem.
It meets quarterly and delivers annual reports evaluating the FSCA’s responsiveness to consumer needs across research, outreach and regulatory interventions.
It formally represents the interests of retail financial customers, including households and small businesses, to ensure consumer experiences, behaviour and concerns inform policy and supervisory priorities.
The inaugural report, covering November 2023 to March 2025, details the panel’s contributions in support of the FSCA’s commitment to improved market conduct, fair customer treatment and financial inclusion, it says.
