How Fintech Growth is Reshaping BFSI Messaging in South Africa

The South African messaging landscape is evolving as customers expect richer, more personalised conversations across channels, despite very different levels of connectivity and data access.

Digitally mature customer segments are embracing AI and rich apps, while less connected segments still rely on low‑data channels like SMS and USSD.

BFSI and fintech players who orchestrate these channels into a single, seamless journey will outperform their peers.

Infobip’s 2025 Global Retail and BFSI Messaging Trends report shows WhatsApp interactions in South Africa grew by 11.6% over the previous year, reflecting strong customer appetite for richer, more interactive conversations.

By 2025, WhatsApp had solidified its position as South Africa’s primary messaging channel, with around 94% of the country’s internet users on the platform, according to the Digital 2025: South Africa report from DataReportal.

For banks, insurers, and fintech’s, this growth signals that customers are ready to move beyond one-way alerts. They now expect two-way dialogue, secure servicing, and convenient self-service on the channels they already use daily.

The opportunity is to design WhatsApp as a core part of an omnichannel journey that still includes trusted, low‑data channels like SMS and USSD for customers with limited connectivity.

“We’re seeing South African banks and fintechs shift from using WhatsApp for simple notifications to running entire service journeys on it,” says Dean Baker, head of Sales (Africa South Region) at Infobip.

“At the same time, SMS and USSD remain essential for customers with limited data or smartphone access, so the most advanced players are designing experiences that move smoothly between these channels. The leaders aren’t choosing between innovation and reach – they are orchestrating both so every customer can engage on the channel that works best for them.”

Across South Africa’s retail banking, insurance, and fintech sectors, AI is already powering WhatsApp and web chatbots for everyday queries, triaging service requests, and automating routine transactions. When combined with channels like SMS and USSD for authentication, reminders, and outreach, AI helps move customers smoothly between self‑service and human support.

The result is lower cost to serve, faster response times, and more consistent engagement – whether the customer is using a smartphone in a city or a feature phone in a rural area.

The BFSI sector is particularly well-positioned to drive this change. South Africa’s fintech market was valued at $7.08 billion in 2023 and is projected to nearly double to $14.86 billion by 2033, while accounting for around 40% of Africa’s fintech revenue and nearly 21% of the continent’s fintech startups.

As more products, payments, and credit journeys move into digital channels, competition is shifting from simply launching new services to delivering secure, seamless customer experiences across messaging. For South African BFSI leaders, this raises the bar: customers will judge fintech’s and incumbents alike on how easy it is to start, continue, and complete their journeys on the channels they already use every day.

Baker adds,

“The growth of South Africa’s fintech sector is raising the bar for digital engagement, as customers now expect secure, personalised, omnichannel experiences wherever they manage their money. Leading BFSI players are already using AI and trusted channels like WhatsApp, SMS, and USSD to design end‑to‑end journeys – from onboarding and authentication to servicing and retention – rather than isolated touchpoints.”

Baker concludes,

“The future of customer engagement in South Africa will belong to businesses that balance innovation with inclusivity. Those that move now to build true end‑to‑end omnichannel journeys, combining established and emerging technologies – will be best positioned to thrive in an increasingly digital economy.”

As South Africa’s messaging ecosystem matures, Infobip helps South African organisations integrate AI and omnichannel strategies, combining scale, security, and personalisation to deliver seamless customer experiences.

By helping businesses integrate new technologies such as AI, while maintaining trusted communication channels like WhatsApp, SMS and USSD, Infobip is enabling a digital future that combines scale, security, and personalisation.

The post How Fintech Growth is Reshaping BFSI Messaging in South Africa appeared first on Tech | Business | Economy.