Absa Group, a leading South African financial services provider, has announced a new initiative to include customer gambling spending patterns in its credit risk assessments. This move reflects the bank’s commitment to responsible lending and proactive risk management in response to the growing online gambling activity.

The Personal and Private Banking division of Absa has identified a correlation between increased gambling activity and higher levels of borrower debt, especially during financial stress. As a result, the bank will now consider gambling trends when evaluating loan applications and monitoring existing credit accounts. This initiative aims to detect potential financial strain early, helping customers manage their finances responsibly while protecting the bank’s lending portfolio.

Data collected by Absa reveals notable growth in gambling transactions, with online gambling accounting for over 60% of all activity. There has also been a 17% year-to-date increase in gambling-related card spending, even as overall consumer expenditure declines. The bank plans to use these insights to provide targeted financial advice, encourage responsible borrowing, and monitor accounts where gambling behavior could negatively impact household finances.

“Understanding our customers spending behavior is essential for promoting financial wellness and protecting their long-term financial health,” said Group CEO Kenny Fihla. “By considering gambling trends in our credit assessments, we can offer better guidance, identify risks earlier, and empower our clients to make informed financial decisions.”

This initiative aligns with broader efforts to enhance financial literacy and promote responsible gambling practices, particularly in a rapidly expanding online betting environment. Absa is committed to balancing consumer protection with credit accessibility, mitigating the economic effects of gambling-related spending that can divert income from essential household expenses.

Despite these evolving risk management strategies, Absa reported strong financial performance for fiscal year ending 2025, with a 12% rise in adjusted earnings to R24.76 billion (€1.24 billion). This growth was driven by a 7% increase in South African revenues and a 25% surge in international income, highlighting the bank’s robust financial position as it adopts innovative approaches to credit risk evaluation.

By integrating gambling data into its lending processes, Absa is positioning itself at the forefront of responsible banking in South Africa, ensuring clients receive informed guidance while promoting sustainable credit practices in a rapidly changing financial and digital landscape.