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ALWAYS FRED > Business & Economy > Fintech CEO warns against digital lending without consumer protections
Fintech CEO warns against digital lending without consumer protections
Business & Economy

Fintech CEO warns against digital lending without consumer protections

May 13, 2026 3 Min Read
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Fintech CEO warns towards digital lending with out shopper protections

Shaib Haruna, CEO of MobileMoney Fintech Restricted (MMFL), has warned that increasing monetary inclusion throughout Africa with no robust shopper safety framework dangers plunging tens of millions of customers into debt disaster and undermining confidence in Africa’s quickly rising digital monetary ecosystem.

Mr. Shaib issued the warning in his keynote tackle on accountable digital lending on the opening ceremony of the 3i Africa Summit in Accra on Might 6, 2026. The summit introduced collectively policymakers, regulators, fintech leaders and buyers to debate the way forward for Africa’s digital economic system.

Though he acknowledged that digital lending has dramatically improved entry to credit score for people and small and medium-sized companies, he warned that speedy growth with out correct administration might lure debtors in a cycle of debt quite than lifting them in the direction of true monetary inclusion.

“There isn’t any inclusion with out safety, and inclusion with out safety is a lure,” he mentioned.

Mr Shaib famous that digital lenders at the moment are capable of approve hundreds of loans inside seconds in cities equivalent to Accra, Kampala and Dar es Salaam, however questioned whether or not debtors totally perceive the rates of interest, penalties and compensation phrases that include such credit score.

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He outlined 4 priorities that he mentioned are pressing for the sector: transparency in product design, accountable lending practices, knowledge equity, and accountability throughout the digital finance worth chain. He pressured that clients want a transparent understanding of the total price of borrowing and that transparency ought to be constructed into all merchandise from the beginning, quite than being handled as an possibility.

Concerning regulation, Mr. Scheib referred to as for a shift from strict rules-based supervision to an adaptive supervisory system constructed round risk-based frameworks, real-time knowledge sharing, and results-oriented supervision with an emphasis on buyer impression.

“The reply is not only extra regulation, however smarter regulation,” he mentioned.

He concluded by putting belief as the muse for sustainable digital finance progress, warning that failing to behave to guard shoppers dangers repeating the dangerous experiences in different markets the place unchecked progress in digital lending has led to widespread compensation difficulties.

The 3i Africa Summit attracted greater than 600 members over three days and concluded on Might 8 with a renewed name for collaboration between regulators, innovators and buyers to construct a safer and extra inclusive digital monetary future for Africa.

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