The Bank of Ghana is intensifying its crackdown on illegal digital lending operations that exploit vulnerable consumers through abusive practices and unauthorized access to personal data.
Head of FinTech and Innovation at the central bank, Kwame Oppong, warned operators of these platforms, emphasizing that the Bank will not tolerate innovations that harm users or threaten public trust in the financial system.
Speaking on Joy Business, Mr. Oppong condemned the tactics used by unlicensed digital lenders, particularly apps that harass borrowers and violate their privacy.
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“Nothing should be allowed into the country that jeopardizes the livelihoods of individuals and businesses. Some of these illegal lending apps go as far as extracting photos and contact lists from users’ phones and then use that data to shame or threaten them. This is unethical and unacceptable,” Oppong stressed.
He cited cases where desperate individuals, seeking small loans to meet immediate needs, were later subjected to public humiliation and invasive debt recovery practices. In some cases, app operators distributed private images and messages to borrowers’ contacts to coerce repayment.
Oppong stated, “This is not innovation. It’s exploitation under the guise of financial services. People are being forced into fear and distress simply for needing help.”
The central bank, in collaboration with the Cybersecurity Authority and law enforcement agencies, has already conducted raids on offending operators. According to Oppong, these efforts have led to the arrest of over 200 individuals linked to unlicensed lending activities.
The Bank of Ghana urged the public to avoid borrowing from unregistered digital platforms and to always verify the licensing status of financial service providers through official channels.
The latest crackdown forms part of broader regulatory reforms aimed at ensuring responsible innovation in Ghana’s fast-growing FinTech sector, while protecting consumers from predatory practices.
Authorities reaffirmed that legitimate innovation in digital finance is welcome, but it must align with national laws, ethical standards, and consumer protection frameworks.