South Africa’s financial service provider Absa Group plans to include gambling spending patterns in lending risk assessments. The move follows internal analysis linking gambling activity with rising borrower debt levels. The bank believes itsinsights can be used to tailor advice and monitor user accounts more closely.
Group Chief Executive Kenny Fihla said the bank’s Personal and Private Banking unit has started integrating gambling behaviour into lending decisions. The Personal and Private Banking division now reviews gambling transaction trends when evaluating credit applications and monitoring risk.
Fihla said internal analysis identified a clear correlation between higher debt levels and increased gambling activity among customers. According to the bank, gambling expenditure often increases when individuals face growing financial pressure or mounting debt obligations.
Fihla explained: “The more clients become indebted, the more they gamble and the deeper the hole becomes.” The bank believes these insights can strengthen its understanding of customer financial behaviour and repayment risk.
Data previously published by Absa shows steady growth in gambling-related transactions across South Africa. The bank’s Merchant Spend Analytics data showed card spending on gambling increased by 17 per cent from the start of the year to date.
This increase occurred even as overall consumer spending declined during the same period. Online gambling has become one of the dominant channels for these transactions.
By mid-2025, online gambling accounted for around 61 per cent of gambling transactions. That figure represents a sharp rise compared with 26 per cent recorded in 2022. This direction highlights the rapid expansion of digital gambling platforms and mobile betting activity.
According to the bank, growing gambling expenditure can place pressure on household finances. Money spent on gambling may divert income away from essential expenses and existing financial commitments.
The bank said this shift can reduce the ability of borrowers to meet repayment obligations. As a result, higher gambling activity can increase the likelihood of credit stress among customers. Absa believes monitoring these spending patterns can help identify early warning signs of financial difficulty.
The bank plans to use these insights to offer more targeted financial advice to customers. Accounts showing high gambling spending may receive closer monitoring within the bank’s risk management framework. Fihla said the initiative aims to support both customers and the institution. The approach will complement existing credit risk tools rather than punish occasional or responsible gambling.
Absa also sees the move as part of wider efforts to promote financial literacy and responsible financial behaviour. The initiative arrives as online gambling continues expanding across South Africa. Banks and regulators are increasingly examining their broader economic and social effects.
The announcement comes alongside the release of Absa’s FY25 financial results. The bank reported a 12 per cent year-on-year increase in adjusted earnings to R24.76bn ($1.44bn).
Revenue from South African operations rose 7 per cent to R17bn ($982.6m). Revenue generated outside South Africa reached R7.8bn ($450.8m). That segment recorded a 25 per cent year-on-year increase, reflecting stronger performance across regional markets. Absa’s leadership believes improved data analysis will play a larger role in future risk management strategies.
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