In South Africa, a financial revolution is quietly taking place, powered by artificial intelligence and led by companies reimagining what fintech can do for financial inclusion. Behind the transformation of one such company stands Brett van Aswegen, CEO of Wonga South Africa, who guided the lending platform through crisis to become a model for responsible AI-driven credit in emerging markets.
The Digital Transformation Imperative
When van Aswegen took over Wonga South Africa (ten years ago in fact) he inherited a business model from the UK parent company that was optimizing for the wrong things. “Wonga UK was a business made up mostly of people out of the gaming industry who didn’t understand credit that well,” he explains. “It was all around optimizing revenue and profitability… when you’re looking at credit you’re about optimizing customer outcomes.”
This fundamental shift in perspective—from profit-first to customer-first—drove a complete digital transformation. The company rebuilt its technological foundation from the ground up, creating a platform specifically designed to serve underbanked populations through data-driven decision making.
“We had to rebuild the system because it needs to do different things,” says van Aswegen. “We re-engineered what we thought the platform should be doing… what do we want our system to be good at and where do we want to partner with people who are better than us at certain components?”
The Three Pillars of Fintech Success
According to van Aswegen, successful fintech organizations need to excel at three critical functions:
- Technology platforms built for the specific challenges of their market
- Data handling that drives smart, ethical decision-making
- Digital marketing that reaches customers at their moment of need
“Digital becomes part of their strategy whereas for us digital is all we have: it’s our shop front, that’s all we do,” says van Aswegen, comparing traditional financial institutions to pure-play fintechs. This digital-first mindset requires specialized expertise and a willingness to abandon legacy systems and thinking.
AI-Driven Financial Inclusion
Perhaps the most compelling story emerging from Wonga’s transformation is how artificial intelligence and alternative data sources can expand financial access. In South Africa, approximately 40% of adults remain excluded from formal credit markets, forced to rely on informal lenders charging exorbitant interest rates of 30-50% monthly.
“The future opportunity for Wonga is around helping that 40% of people gain access to credit that’s safer and more sustainable,” van Aswegen explains. “I believe the nature of Wonga’s product could become an important bridging product to help people step into the formal credit market.”
The key technology enabling this transformation? AI-powered credit scoring that doesn’t rely on traditional credit histories.
“Using alternative data to be making decisions for these people because they won’t have credit records at this stage,” says van Aswegen. By analyzing different data points, fintech companies can make responsible lending decisions for consumers who have been systematically excluded from traditional banking.
Hyper-Personalized Financial Services
The evolving capabilities of AI are enabling unprecedented personalization in financial services. “We talk about hyper-personalized marketing,” van Aswegen notes. “Every consumer certainly that we deal with has a smartphone in their pocket so there’s a lot you can learn about a consumer through their device.”
This data-driven approach represents a fundamental shift from mass marketing to targeted value creation:
“Your ability to communicate with individuals now is not constrained like it was in years gone by… you could in theory do a one-to-one marketing campaign because you’ve got the foundations of data storage which is now relatively cheap and unlimited. Your data processing through things like AI and machine learning and their ability to interpret and transform that data is unlimited.”
Regulatory Partnership, Not Opposition
One of the most instructive aspects of Wonga’s transformation was its approach to regulation. Rather than fighting regulatory changes, van Aswegen engaged proactively with regulators, ultimately turning potential adversaries into advocates.
“We demonstrated credibility in what we were planning to do and what we did do,” he explains. “We became their poster child of ‘here’s how companies can change’ and they would refer to ‘this is what Wonga’s done.'”
This cooperative approach stands in stark contrast to the adversarial stance many fintech companies take toward regulation. “That’s often South Africa’s answer to regulation—’we’ll see you in court and we’ll fight you’—and we just took a very different approach.”
The Future of AI in Lending
For fintech companies serving emerging markets, there’s a tremendous opportunity to use AI responsibly to expand credit access and improve financial outcomes. The goal isn’t simply to provide loans but to help consumers build financial identities that can serve them throughout their lives.
“Giving these customers a bridge into the formal market puts them onto the map,” van Aswegen says. “It allows others to view that customer and see the narrative. It may be a small amount of credit but it’s actually the start of a much bigger, life-long journey for them.”
As fintech continues to evolve, we’re likely to see AI playing an increasingly central role in creating more inclusive financial systems worldwide—not just through better credit scoring, but through smarter, more relevant products designed around actual customer needs rather than legacy banking models.
For emerging markets especially, the promise of AI-powered lending represents a technological leap forward and a path toward greater financial inclusion for all.
George is the voice behind Wisdomised, a news blog dedicated to delivering fresh, engaging stories that keep readers both informed and entertained. With a sharp eye for current events and trending topics, George crafts posts that make complex news accessible and enjoyable. His unique perspective and storytelling skills bring a refreshing twist to every update, inviting readers to explore the world through Wisdomised.