AI-generated complaints creating new challenges for financial ombuds in South Africa

Africa Melane speaks to Reana Steyn, CEO of the National Financial Ombud Scheme about how artificial intelligence is beginning to affect dispute resolution in South Africa’s financial sector. 

Listen to the interview in the audio player below.

Artificial intelligence is beginning to change how South African consumers lodge complaints against banks, insurers and credit providers, and not always in ways that make resolving disputes easier.

The National Financial Ombud Scheme (NFO), which handles complaints about financial services, says investigators are increasingly receiving submissions generated with the help of AI tools. While these tools can help consumers organise their cases, they are also creating new complications for those trying to resolve disputes quickly.

The National Financial Ombud Scheme, said some complaints now arrive as extremely long documents, sometimes stretching to more than 100 pages.

In some cases, they even include references to legal cases that do not exist.

Speaking to Africa Melane on The Money Show, Reana Steyn, CEO of the National Financial Ombud Scheme says the biggest challenge is that complaints often make reference to information that appears factual but is actually incorrect or entirely AI-generated.

She says the most effective complaints are often the simplest ones, a clear explanation of what happened, supported by evidence such as emails, policy documents or account statements.

“There are hundreds of thousands of financial transactions taking place in this country every day. Every payment is a potential problem. Every time money moves out of an account…all of those thigs can give rise to a complaint between a consumer and their financial services provider.”

- Reana Steyn, CEO - National Financial Ombud

“There’s been a sudden uptake in the usage of AI…and now we see the complaint is no longer a simple paragraph or two. It’s actually a very long-winded document with pages and pages citing various acts, legislation and citing case law, and we now have to sift through that.”

- Reana Steyn, CEO - National Financial Ombud

“If you do want to make use of AI, then please be so kind to go and check the references and not just send us everything that’s there. Some of those things are plain wrong.”

- Reana Steyn, CEO - National Financial Ombud

Scroll to the top of the article to listen to the full interview.