AI governance principles for financial institutions
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Individual Reform: AI governance principles for financial institutions 2026 - 2027

Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

No data available for the deliverable: Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

No data available for the deliverable: Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

No data available for the deliverable: Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

No data available for the deliverable: Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

No data available for the deliverable: Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

No data available for the deliverable: Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

No data available for the deliverable: Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

No data available for the deliverable: Include AI governance principles in the Joint Standard on Culture and Governance with a financial sector focus.

Summary

Financial inclusion for SMEs through payments innovations in South Africa involves leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain.
The FSCA/PA financial sector AI governance survey and joint report (published 24 November 2025) set the foundation for inclusion of AI governance principles in the Joint Standard on Culture and Governance. The FSCA, PA and SARB are collaborating on a further discussion paper, due in July 2026, to set recommendations for safe and responsible AI adoption with a view to developing a formal joint regulatory instrument. The broader national AI policy context is impaired: the Draft National AI Policy (published April 2026 after Cabinet approval) was withdrawn on 27 April 2026 after AI hallucinations were found in at least six of its 67 academic citations. No revised national AI policy timeline has been provided.

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Is it working?

Progress on the FSCA/PA financial sector AI track is solid and credible: the joint report (November 2025) is the first evidence-based sectoral AI assessment, and the discussion paper due in July 2026 will set out formal regulatory recommendations. However, the abrupt withdrawal of the Draft National AI Policy on 27 April 2026 has materially weakened the regulatory context within which the Joint Standard on AI governance sits. The FSCA's own March 2026 conference confirmed that governance frameworks within institutions are inconsistent and ad hoc, noting that: "Innovation is forging ahead, policy is catching up." For financial institutions, the FSCA/PA track provides clearer near-term guidance than the discredited national policy process.

Actions

Regulator, board, and sector rollout proceeding smoothly; industry feedback is constructive.

Are there plans?

Yes. Authorities plan to publish the joint discussion paper in July 2026, conduct industry and public consultations and then craft a joint FSCA/PA/SARB instrument that embeds AI‑governance expectations into the regulatory framework. Market studies on AI adoption have been issued, with rollout of governance training and staff board guidance planned for 2026 and there is further research to underpin legal amendments.

Is it on the agenda?

AI in the financial sector is explicitly highlighted in Budget Review 2026’s financial sector and public‑private partnerships update, and features in FSCA, PA and SARB strategic and regulatory plans for 2025–2027.

Goals

To establish a coherent governance framework to ensure ethical, fair and accountable use of artificial intelligence in financial services, protecting consumers and financial stability while enabling innovation.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

Analyst: Tinashe Kambadza
Status: in-progress
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