Concerns are growing within Africa’s financial sector over the risk that rapid expansion in digital lending and mobile finance could expose consumers to hidden charges, weak complaint systems and rising debt burdens if regulation fails to keep pace with innovation.
As fintech firms, digital banks and mobile money operators continue to blur the lines between lending, payments and traditional banking services, industry players are warning that financial inclusion must not come at the expense of consumer protection.
The concerns were raised during discussions at the 3i Summit in Accra, where stakeholders examined the growing risks associated with app-based lending, embedded credit and digitally enabled financial ecosystems.
Head of Strategy and Enablement at Stanbic Bank, Darwin Mireku, says future regulatory frameworks must place customers at the centre to ensure sustainable growth across the sector.
“So, at the heart of all this is the impact it is having on customers, and we must put customers at the forefront of all these discussions.”
The panel discussion focused on balancing innovation with accountability as Africa’s digital finance ecosystem expands rapidly.
Mr Mireku noted that while financial institutions and fintech firms may naturally advocate for regulations that support their business models, long-term sustainability depends on creating rules that also reflect consumer interests.
He stressed that transparency in pricing and effective complaint resolution systems are essential to protecting users.
“Things around transparency in pricing is critical, things around complaint mechanisms in terms of things going wrong are very important, and it must be clear to the customer what recourse he has when anything goes amiss.”
Stakeholders at the summit also called for stronger safeguards to address concerns over indebtedness and consumer trust while still enabling financial innovation across the continent.
By Michael Ogbodu
