The expansion of digital credit in Kenya in recent years has been linked to a decrease in the financial health of Kenyan borrowers (Source: FinAccess 2021 Household Survey). This creates an urgent need to monitor the digital credit market to develop policies to improve product suitability and responsible lending. The Competition Authority of Kenya (CAK) and IPA audited loan data from Kenya’s leading digital credit providers and conducted a national survey measuring risks like multiple borrowing amongst Kenyan users of digital financial services. The inquiry has informed the development of consumer protection policy strategies for the tens of millions of Kenyans who use digital credit products, including new requirements for lenders to be more transparent about the costs of their loans.

Financial fraud is harmful for any population, but especially for people in low- and middle-income countries where people increasingly rely on digital financial services. This project seeks to leverage complaint records and user information from the regulator, mobile network operators, and social media to develop predictive models of third-party fraud. Working with the Uganda Communications Commission (UCC), IPA used complaints data from operators to develop new methods to monitor risks such as fraud, and predict which consumers and contexts are most associated with fraud complaints. The UCC has since expanded this project into a biannual Consumer Affairs report which holds providers accountable across key consumer protection metrics.

As financial services digitize, more consumers are sharing their experiences and raising concerns on social media platforms like Twitter, WhatsApp, or Facebook. Social media data can therefore provide insights into issues affecting digital consumers and how well providers respond, complementing official complaints from providers and regulators. This project identifies and analyzes consumer protection-relevant content on social media platforms in Kenya, Nigeria, and Uganda to explore their relevance as data sources for consumer protection market monitoring.