Financial Advisor Cautions Ghanaians Against Unregulated Lending Apps

By: Solomon Nartey Tetteh

Financial advisor Solomon Addo has cautioned the public to be extremely careful when using mobile lending apps, warning that many of these platforms are unregulated and pose a significant risk to users’ personal data.

Speaking on Business Breakfast on Zed FM, Mr. Addo explained that while the growing demand for fast and convenient access to credit has made lending apps increasingly popular, the lack of regulation in the sector presents a serious concern.

“People are drawn to these apps because they offer quick loan approvals, require little documentation, and are easily accessible, especially for individuals who do not have formal banking relationships or credit histories,” he noted.

Mr. Addo urged individuals to thoroughly investigate the legitimacy of lending platforms before sharing any sensitive information or applying for loans. He advised the public to check whether the app is licensed and regulated by the Bank of Ghana.

“Be certain that they are licensed and at least have some reputation. Some of these lending apps are not regulated,” he emphasized.

According to Mr. Addo, the absence of proper oversight allows some apps to misuse or even sell users’ personal data to third parties without consent.

“If you’re not careful, the information you provide such as your ID, contact list, or bank details could be used against you,” he warned.

He further called on regulatory bodies to intensify monitoring of digital lending platforms and educate the public about the risks involved in using unregulated services.

“The rise in digital financial tools is a good thing, but it must be matched with proper oversight and public awareness. Until then, consumers must protect themselves by doing their due diligence, Mr. Addo noted.”

The Bank of Ghana has previously advised the public to deal only with licensed financial institutions, and industry experts continue to emphasize the importance of safeguarding personal data in an increasingly digital economy.

He explained that in a bid to maintain a certain lifestyle, some individuals resort to borrowing, particularly from mobile lending apps only to find themselves unable to settle their debts.

“People are living beyond their means, and that’s why debt is rising. The truth is, if your income can’t sustain your lifestyle, you need to adjust that lifestyle or find additional sources of income,” he said.

Mr. Addo highlighted the importance of seeking alternative income streams to ease financial pressure and reduce the need to borrow unnecessarily. He also stressed the need for proper financial planning and discipline.

“If you’ve already incurred debt, it’s important to develop a repayment plan and commit to it. Ignoring your debt doesn’t make it go away, it only makes things worse,” he advised. He encouraged the public to adopt responsible financial habits, including budgeting, saving, and prioritizing essential expenses over luxury or impulse purchases.