AI and Data in South Africa's Finance Sector: Toward Financial Inclusion

Despite the finance sector’s ever-increasing portfolio of ‘inclusive’ financial solutions which promote access to financial services for a broader segment of the population, the use of AI and advanced data processing by the industry have the potential to widen inequalities and create opportunities for manipulation and exploitation of customers through detailed data collection and analysis. This Topical Guide examines possible implications of the increasing use of AI and data in the South African financial services industry. It proposes a human rights-based approach to AI development in this sector, focusing on microcredit and fintech. The Guide identifies some of the benefits and risks associated with the direction of current AI development in this field and concludes by offering recommendations to reduce potentially exploitative practices and promote meaningful financial inclusivity.