The Financial Sector Conduct Authority (FSCA) has fined African Bank Limited R700,000 for misleading advertising in its #KeFestive social media campaign. The FSCA found that the ads wrongly called a personal loan an “investment”, breaking banking rules.
Why African Bank Was Fined
The FSCA said African Bank’s December 2023 ad—featuring a celebrity—used the slogan “It’s not a skoloto chomi! Ke investment” (meaning “It’s not a quick loan, it’s an investment”). This was false and misleading because loans and investments work very differently.
The FSCA’s Conduct Standard 3 of 2020 requires banks to:
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Ensure ads are clear, fair, and truthful (Section 6(1)).
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Avoid false promises or misleading claims (Sections 6(3)(a) & (b)).
African Bank also failed to properly review the ad before posting, breaking Section 6(9), which requires strong ad approval processes.
Penalty & Remedial Action
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Total fine: R700,000 (with R200,000 suspended if African Bank follows rules for 2 years).
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Amount paid: R500,000 (already settled).
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The FSCA noted African Bank’s cooperation and quick fixes to the issue.
FSCA Warning to Banks
The FSCA warned all banks to:
- Keep ads honest –
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FSCA fine African Bank
- customers rely on them to make financial decisions.
- Strengthen ad approval processes to avoid misleading claims.
- Treat customers fairly to maintain trust in the financial system.
“Misleading ads can cause real harm,” the FSCA said. “Banks must ensure customers understand risks, especially with loans.”
Final Message
This fine reminds banks that false advertising won’t be tolerated. With many South Africans struggling financially, the FSCA will take action against institutions that mislead customers.
