This paper empirically analyses variation in use of formally-, semi-formally-, and informally regulated finance using the South African National Income Dynamics Study longitudinal data. The logistic regressions indicate that many individuals use a combination of services across all levels of regulation depending on age, gender, education, population group, religiosity, and social trust. Widespread use of informally regulated finance in South Africa is particularly evident on the savings
side through savings groups/stokvels. The originality of the paper lies in its use of nationally representative longitudinal data to disentangle and analyze the variations in the use of different financial mechanisms, moving beyond the conventional formal-informal dichotomy. In doing so, it contributes to ongoing debates on financial inclusion by demonstrating that informally regulated finance represents a rational, adaptive response to the limitations of formally regulated services rather than a residual or inferior alternative. Depicting the market as dualistic is therefore misleading, there being a need for more nuanced understanding and official recognition of the drivers of financial services’ use.