- Standard Bank recorded the highest number of banking complaints lodged with the National Financial Ombud Scheme during 2025, followed by FNB, Capitec, Nedbank and Absa.
- The NFO helped consumers recover R442.9 million across banking, credit, life insurance and non-life insurance disputes.
- Fraud remained the biggest source of banking complaints, while funeral benefits generated the highest number of life insurance disputes.
South Africa's biggest banks accounted for the overwhelming majority of the 14,685 complaints received by the National Financial Ombud Scheme's Banking Division during 2025, with Standard Bank attracting the highest number of complaints from consumers.
The figures, contained in the NFO's latest annual report, provide a snapshot of the challenges facing consumers in an increasingly complex financial environment. Fraud, disputed transactions, insurance claim rejections, debt collection practices and funeral benefit disputes were among the issues driving people to seek assistance from the Ombud.
Standard Bank recorded 2,975 complaints, representing 20.2 percent of all banking complaints handled by the division. FNB followed with 2,705 complaints, Capitec with 2,641, Nedbank with 2,482 and Absa with 2,234.
The banking statistics formed part of a broader year for the NFO, in which consumers recovered R442.9 million through complaints involving banks, credit providers and insurers.
The NFO, which was formed through the consolidation of four former industry ombud schemes, completed its second full year of operation during 2025 and reported continued growth in complaint volumes across most of its divisions.
Fraud dominates banking disputes
Fraud remained the largest category of complaints received by the Banking Division. According to Banking and Credit Lead Ombud Nerosha Maseti, the rapid growth of digital banking has created new opportunities for criminals, who continue to adapt their methods to target consumers.
Many complaints involved unauthorised transactions, account hijackings and social engineering scams where customers were persuaded to reveal sensitive information or authorise fraudulent payments.
The division also recorded increasing numbers of complaints involving card-not-present transactions, vishing scams and the unauthorised use of card details and one-time passwords.
Although banks continue investing heavily in fraud prevention systems and artificial intelligence-driven security tools, consumers continue to suffer losses when fraudsters gain access to accounts and personal information.
More than R53 million was awarded to banking customers who lodged formal complaints with the Ombud. Approximately 60 percent of this amount relates to fraud matters.
The Ombud found that, in many cases where compensation was awarded, banks had failed to act quickly enough once suspicious activity had been detected or reported.
The Banking Division remained the largest contributor to the NFO's caseload. Premature complaints increased by 11 percent year on year, while formal complaints increased by 25.4 percent.
Banking and Credit divisions join forces
A significant development during the year was the merger of the Banking and Credit divisions into a single Banking and Credit Division. Maseti said the move improved operational efficiency, encouraged greater knowledge sharing and strengthened the Ombud's ability to resolve financial disputes more effectively.
The Credit Division experienced some of the strongest growth recorded anywhere in the organisation. Complaints increased from 1,979 in 2024 to 3,126 in 2025, representing a 58 percent increase. The division resolved 62 percent of complaints in favour of consumers.
The amount recovered through credit complaints increased from R2.36 million in 2024 to R7.47 million in 2025, more than tripling within a year. Many complaints involved affordability assessments, credit refusals, debt collection practices and disputes involving financial crime.
Maseti said the Credit Division's role is increasingly evolving beyond traditional contractual disputes and is becoming an important mechanism for protecting consumers against the growing impact of financial crime.
Life insurance complaints continue to grow
The Life Division also experienced substantial growth in complaint volumes. Lead Ombud Denise Gabriels reported that premature complaints increased from an average of 321 per month in 2024 to 421.17 per month in 2025, representing growth of approximately 31.2 percent.
Formal complaints increased from 350.4 per month to 447.58 per month, reflecting growth of approximately 27.7 percent. Funeral benefit complaints remained the single largest category of complaints handled by the division.
They accounted for 46.2 percent of all complaints received, followed by life insurance complaints at 33.9 percent and disability complaints at 7.4 percent.
Gabriels reported that declined claims remained the biggest driver of complaints, particularly in disputes involving funeral benefits and disability insurance.
The division issued four final rulings against insurers during the year. The Life Division recovered R299.6 million for complainants, representing the largest share of all recoveries recorded by the NFO.
Vehicle and homeowners insurance disputes remain common
The Non-life Insurance Division continued dealing with large volumes of complaints involving vehicle and homeowners insurance. Motor vehicle insurance accounted for 35 percent of complaints handled by the division, while homeowners insurance represented 27 percent.
Lead Ombud Edite Teixeira McKinnon reported that accident-related claims accounted for 70 percent of vehicle insurance disputes, followed by theft and hijacking claims at 8 percent. Many disputes arose when insurers rejected claims based on allegations of driving under the influence or a lack of due care.
In homeowners insurance disputes, acts of nature generated the largest volume of complaints, accounting for 42 percent of matters. Claims involving burst water systems, such as geysers, represented a further 15 percent.
The most common reasons for disputes involved rejected claims based on exclusions relating to gradual deterioration, poor maintenance, wear and tear, defective construction or poor design. The division recorded 10,054 registered complaints and resolved 11,428 complaints during the year.
Registered complaints declined by 2 percent compared with 2024, while resolved complaints increased by 3 percent. The average turnaround time for complaints improved significantly from 117 working days to 105 working days.
Teixeira McKinnon attributed the improvement to increased staffing capacity and lower complaint volumes during the latter half of the year. The division recovered R82.9 million for complainants.
Real people behind the statistics
While the annual report contains thousands of complaint statistics, it also highlights the impact disputes have on ordinary people.
In one matter handled by the Non-life Insurance Division, a homeowner lodged a claim after storm damage affected the roof of outbuildings on her property.
Although an assessor inspected the property shortly after the incident, the insurer failed to provide meaningful updates for months. A second desktop assessment was eventually conducted using photographs taken several months earlier, and the claim was rejected four months after it was first submitted.
The Ombud found that the insurer's conduct amounted to maladministration and a failure to keep the claimant informed. Compensation of R3,000 was recommended, and the insurer ultimately agreed to pay.
Another case involved a bank that repossessed and sold a consumer's vehicle without obtaining a court order or securing valid voluntary surrender documentation.
Although the customer was in arrears, the Ombud found that the bank had failed to follow the correct legal process before selling the vehicle.
The Ombud recommended that the outstanding shortfall debt be written off. The bank accepted the recommendation, resulting in the complainant's debt being extinguished.
A further matter involved a medical doctor whose disability claim was challenged based on alleged non-disclosure.
The insurer argued that the complainant had failed to disclose medical information when applying for cover. The Ombud rejected the argument, finding that the insurer had not proven material non-disclosure. Following the final ruling, the insurer assessed the claim under the original policy and paid the disability benefit.
Growing demand for independent dispute resolution
The NFO said increasing complaint volumes reflect both growing awareness of its services and the increasing complexity of financial products and services.
The organisation continued investing in technology and digital solutions during the year, including the introduction of an artificial intelligence-enabled chatbot designed to improve accessibility and consumer engagement.
The annual report also highlights ongoing investment in staff wellbeing, employee development and consumer education initiatives aimed at improving financial literacy.
As digital banking expands, financial products become more sophisticated, and financial crime continues to evolve, the NFO believes the need for free, fair and independent dispute resolution services will continue to grow.
Its 2025 results suggest that more consumers are turning to the Ombud for assistance than ever before, with banking complaints, insurance disputes and credit matters continuing to shape the financial justice landscape in South Africa.
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