The Chairman of Money Lenders Association, Gbemi Adelekan, has called for regulatory protection for lenders and borrowers.
Adelekan, who is the chief client officer of Kwikpay Credit, a foremost digital money lending service of over a decade of providing personal and business MSME loans under the Trafalgar Associates Group, said this in a statement.
He said, “Digital lenders need the necessary regulatory protection for both consumers and operators to strengthen the ecosystem. While we commend the tremendous efforts of the government through Federal Competition and Consumer Protection Council in making sure that the rights of consumers of online loans are protected and working assiduously to ensure that illegal and unlicensed loan apps are deleted, we also need appropriate regulations from the government to address the various critical challenges of Digital Money Lenders. “
According to him, while the lending landscape becomes more competitive and more banks are providing online loans, the heart of the matter for most lenders was that they were lending money to people and businesses that would honour loan commitments and repay the loans.
Despite the improvement in credit analysis to enhance the quality of loans granted, in addition to the constant improvement in the use of AI and algorithms by digital lenders, he explained that the spate of increase in bad loans was worrisome.
“It has become imminent that the government should step in to help save the industry and introduce measures to ensure financial stability and enable healthy evolution due the huge potential and contribution to the real sector of the economy,” he said.
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