The Chief Executive Officer of MobileMoney Fintech Ltd, Shaibu Haruna, has called for stronger consumer protection measures to match the rapid expansion of digital lending and mobile financial services across Africa.
Speaking at the 3i Africa Summit, Haruna said the growth of high-speed digital credit markets presents both significant opportunities and emerging risks, warning that financial inclusion without adequate safeguards could expose consumers to harmful debt cycles.
Delivering a keynote address on “Strengthening Consumer Protection in High-Velocity Credit & Banking Markets,” he noted that digital lending has revolutionised access to finance by allowing millions of previously underserved individuals and small businesses to secure credit within seconds.
According to him, the rise of digital finance has accelerated financial inclusion across the continent, but has also introduced challenges such as over-indebtedness, lack of transparency in loan conditions, and potential bias in data-driven credit scoring systems.
“Digital lending has been a game changer. Millions of people who were previously excluded now have access to credit at unprecedented speed,” he said.
He, however, cautioned that the same systems designed to expand access to finance could become harmful if consumer protection is neglected.
“Without protection, there is no inclusion—and inclusion without protection becomes a trap,” he warned.
Haruna identified transparency, fair pricing, and efficient complaint resolution systems as essential to building trust in digital financial services. He stressed that customers must be provided with clear and simple information on interest rates, penalties, and repayment terms.
The MoMo boss also expressed concern over the increasing use of data-driven credit scoring models, warning that algorithmic bias could unintentionally discriminate against some groups of people.
“As we process large data sets, we must be mindful of biases that may exclude customers based on income levels, location, or behavioural patterns,” he stated.
He further called for stronger collaboration among regulators, fintech companies, and consumers to ensure the responsible growth of the sector.
“Consumer protection is not just a regulator’s responsibility—it is a shared duty across the entire ecosystem,” he said.
Haruna urged regulators to adopt smarter and more adaptive supervisory frameworks instead of relying solely on stricter regulations. He proposed measures including risk-based lending rules, real-time data sharing, and outcome-based supervision to improve oversight in the sector.
At the industry level, he encouraged fintech firms to embrace responsible lending practices, including the introduction of cooling-off periods between loans and the simplification of terms and conditions for customers.
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The post MoMo CEO calls for consumer protection as digital lending expands appeared first on The Ghanaian Chronicle.
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