The Rise of the Digital Native Borrower

Gen Z is quickly reshaping how credit works in South Africa — not just who borrows, but how borrowing happens.
Often referred to as “digital natives,” this generation grew up with smartphones, instant messaging, and on-demand services. As a result, their expectations around money are very different from those of previous generations. When it comes to credit, speed, simplicity, and transparency matter more than ever.

Credit Without the Branch Visit

For many Gen Z borrowers, visiting a bank branch or filling out long forms feels outdated. They expect to apply, get feedback, and manage repayments directly from their phones. Loan apps and digital lenders are meeting this demand by offering mobile-first experiences, quicker decisions, and fewer steps between application and approval.This shift is about efficiency. Digital native borrowers value solutions that fit seamlessly into their daily lives.

First-Time Borrowers, New Expectations

Gen Z also makes up a large portion of first-time borrowers. Many are entering the credit market without long credit histories or traditional documentation like payslips. As a result, lenders are rethinking how they assess risk, placing more emphasis on alternative data and responsible usage over time.For borrowers, this means access to credit is no longer limited to those who fit a narrow profile. For lenders, it means building trust through clear terms and predictable experiences.

Transparency Is Non-Negotiable

Unlike previous generations, digital native borrowers are far less tolerant of hidden fees or unclear repayment terms. They expect to see costs upfront, understand repayment schedules clearly, and know exactly what happens if they miss a payment.Loan apps that fail to communicate clearly often lose credibility fast, especially in a world where reviews and ratings are only a tap away.

What This Means for the Future of Credit

The rise of the digital native borrower signals a broader change in the credit landscape. Products are becoming simpler, processes more transparent, and access more inclusive. As this group grows, lenders that prioritise clarity, speed, and mobile-first design will continue to stand out.
For borrowers, the takeaway is simple: understanding how loan apps differ in requirements, repayment, and overall experience is more important now more than ever.