Stakeholders call for stronger consumer protection in Africa’s Digital Finance Sector

Concerns are mounting within Africa’s financial sector over the growing risks associated with rapid expansion in digital lending and mobile finance, as stakeholders warn that weak regulation could expose consumers to hidden charges, poor complaint systems, and rising debt burdens.

Industry players say that while fintech firms, digital banks, and mobile money operators continue to drive financial inclusion across the continent, consumer protection must remain a key priority.

The concerns were raised during discussions at the 3i Summit in Accra, where participants examined the risks linked to app-based lending, embedded credit services, and digitally driven financial ecosystems.

Speaking during a panel discussion, Head of Strategy and Enablement at Stanbic Bank, Darwin Mireku, stressed the need for future regulatory frameworks to prioritise the interests of customers.

“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,” he stated.

The discussions focused on how regulators and industry players can balance innovation with accountability as Africa’s digital finance ecosystem continues to evolve rapidly.

Mr Mireku noted that although financial institutions and fintech companies may naturally advocate for regulations that favour business growth, sustainable development in the sector will depend on policies that also safeguard consumers.

He highlighted transparency in pricing and effective complaint resolution systems as critical elements in protecting users.

“Things around transparency in pricing are critical, and complaint mechanisms in terms of things going wrong are very important. It must also be clear to the customer what recourse he has when anything goes amiss,” he explained.

Participants at the summit further called for stronger safeguards to address concerns over rising indebtedness and declining consumer trust, while ensuring that innovation within Africa’s digital financial ecosystem continues to thrive.