Responsible Digital Credit: What Does Responsible Digital Credit Look Like?

All over the world, small loans to individuals and very small businesses are increasingly made using digital channels, whether online, via a mobile device or through an agent. However, trust, confidence and responsible lending practices need to be in place to ensure this industry is successful and its customers are protected and empowered.

This publication outlines the digital credit landscape and the risks customers face, and examines the best practices, standards and initiatives that exist or should be implemented to improve consumer protection in digital lending. It argues that ultimately, it will take a village to ensure that digital credit clients are protected—including governments, regulators, industry players, advocates and consumers themselves. The study offers three main activities as key to the future of what responsible digital credit looks like:

• Industry self-regulation.
• Certification of digital credit providers.
• Directly empowering consumers.