Shaibu Haruna cautions that the rapid growth of AI-driven credit must be balanced with transparency, proper regulation, and strong financial literacy to safeguard consumers and ensure the long-term success of the fintech industry.
Shaibu Haruna, CEO of MobileMoney Fintech LTD, has urged the swift improvement of trust systems and consumer protection measures in Africa’s rapidly growing digital lending sector.
He emphasized that the future sustainability of fintech will hinge on regulators and operators striking the right balance between innovation and accountability.
Speaking at the 2026 3i Africa Summit in Accra, Mr. Haruna noted that Africa’s digital credit ecosystem is moving into a new phase of rapid growth, fueled by artificial intelligence, rising mobile penetration, and data-driven lending models that can approve loans in just seconds.
The summit, themed “The Next Frontier: Shaping Africa’s Integrated FinTech Future,” brought together policymakers, fintech leaders, regulators, and investors to explore the future of digital finance across the continent.
A fast-growing yet delicate credit ecosystem is taking shape. According to Mr. Haruna, digital lending stands out as one of the most influential parts of Africa’s fintech surge, particularly in providing access to credit for informal workers, small businesses, and those excluded from traditional banking.
However, he cautioned that the speed and scale of innovation are beginning to expose structural weaknesses in consumer protection.
“In the time it takes to complete a sentence, thousands of loans can be approved across cities like Accra, Nairobi, or Dar es Salaam,” he said. “But the real question is whether borrowers fully understand what they are signing up for the interest rates, penalties, repayment timelines, and consequences of default.”
Shared responsibility in digital credit ecosystem
He warned that without stronger transparency mechanisms, the sector risks creating a cycle of over-indebtedness among vulnerable users who may not fully understand digital credit terms. According to Mr. Haruna, the biggest challenge facing Africa’s digital lending sector is no longer access but trust.
He explained that while technology has solved the speed and convenience problem, it has also introduced new risks related to opaque pricing models, limited disclosure, and inconsistent borrower education.
He stressed that financial inclusion without financial understanding could ultimately weaken confidence in the entire system.
“Access alone is not enough,” he said. “If people do not understand the cost of borrowing, then inclusion becomes a risk rather than a benefit.”
Shared responsibility across the financial ecosystem
Mr. Haruna emphasized that addressing these challenges requires a coordinated response from regulators, fintech operators, and consumers themselves.
He called for simplified loan pricing structures, clearer disclosure requirements, and stronger enforcement of consumer rights across digital lending platforms.
He also urged borrowers to adopt more responsible financial behaviour, noting that repayment discipline is essential to maintaining affordable credit across the system.
“Borrowing is not the problem,” he said. “The issue is how borrowing is used. When credit is used productively, it drives growth and repayment improves. When it is misused, the cost of credit rises for everyone.”
AI-driven lending improves performance but raises new questions
The CEO further revealed that repayment performance across digital lending platforms has shown steady improvement in recent years, supported by enhanced data analytics and artificial intelligence-powered credit scoring systems.
These systems, he explained, are helping lenders better assess risk, reduce default rates, and expand credit responsibly to previously underserved populations.
“Most customers do repay,” he noted. “We are seeing improved non-performing loan ratios year after year because of better data and more sophisticated risk modelling.”
Despite these gains, he warned that reliance on algorithm-driven lending must still be guided by strong ethical and regulatory oversight to prevent unintended exclusion or unfair lending practices.
Responsible borrowing campaign launched
As part of efforts to deepen consumer awareness, MobileMoney Fintech LTD has rolled out a responsible borrowing campaign aimed at strengthening financial literacy and promoting disciplined repayment behaviour among users of digital credit services.
The initiative is focused on helping customers better understand loan terms, interest rates, repayment obligations, and the long-term implications of default, as the company seeks to encourage more informed and responsible use of credit.
“We are reminding customers that it is good to borrow and repay,” Shaibu Haruna said. “But it is not acceptable to borrow and default,” he added, stressing the need for accountability among borrowers to sustain affordable and accessible credit across the ecosystem.
Call for urgent reforms within three months
Shaibu Haruna urged fintech stakeholders across Africa to take swift action over the next three months to introduce key reforms aimed at strengthening consumer protection on digital lending platforms.
He outlined key priority areas including transparent and simplified pricing structures, improved borrower education, ethical use of customer data, and the establishment of efficient dispute resolution mechanisms to address customer concerns promptly.
Mr. Haruna cautioned that delays in taking decisive action could erode public trust in digital financial services and ultimately slow the pace of Africa’s fintech-driven transformation, which has become central to advancing financial inclusion and economic participation across the continent.
Trust as the foundation of fintech future
Shaibu Haruna stressed that trust must remain the cornerstone of Africa’s fintech evolution, warning that rapid innovation without strong safeguards could erode confidence in the system.
“Speed is our competitive advantage, but trust must be our licence to operate,” he said, underscoring the need for fintech players to move beyond growth metrics and focus on building transparent, accountable, and user-centric platforms.
He noted that as digital lending scales across markets, the industry must prioritise clear disclosure of loan terms, fair pricing models, and accessible dispute resolution systems to protect consumers especially first-time borrowers who are most vulnerable to misunderstanding digital credit products.
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Mr. Haruna added that regulators and industry players must work more closely to establish consistent standards across jurisdictions, ensuring that innovation does not outpace oversight. He also emphasised the importance of strengthening financial literacy, arguing that informed users are critical to sustaining confidence and stability in the ecosystem.
As digital lending continues to expand across Africa, his remarks reflect a growing consensus among policymakers and industry leaders that the sector’s long-term success will depend not only on technological advancement, but on the strength of governance frameworks that safeguard users and build enduring public trust.
Source: Isaac Kofi Dzokpo
