Growing concerns are emerging across Africa’s financial sector over the potential risks associated with the rapid expansion of digital lending and mobile finance services, as industry leaders warn that regulation must evolve quickly to protect consumers.
With fintech companies, digital banks, and mobile money operators increasingly integrating lending, payments, and banking services, stakeholders say stronger safeguards are needed to prevent hidden charges, weak complaint systems, and rising debt burdens among users.
The concerns were highlighted during discussions at the 3i Summit in Accra, where financial industry players examined the challenges linked to app-based lending, embedded credit systems, and the continent’s fast-growing digital finance ecosystem.
Head of Strategy and Enablement at Stanbic Bank, Darwin Mireku, stressed the need for future regulatory frameworks to prioritise consumer welfare alongside innovation.
“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,” he stated.
Participants at the summit discussed the importance of balancing innovation with accountability as digital financial services continue to expand across Africa.
Mr Mireku noted that although financial institutions and fintech firms often push for regulations that favour business growth, long-term sustainability depends on policies that also protect consumers.
He emphasised the need for transparency in pricing and stronger complaint resolution mechanisms to build trust in digital financial services.
“Things around transparency in pricing are 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,” he said.
Stakeholders also called for tougher consumer protection measures to address concerns about over-indebtedness while ensuring innovation and financial inclusion continue to thrive across the continent.
