Responsible Digital Credit: Frontier Solutions for Authorities and Providers

CGAP compiles over 160 global initiatives that address consumer risks in digital credit, from overindebtedness to data misuse. This technical guide offers actionable solutions tested or adopted globally to identify, prevent, mitigate, and resolve key risks facing digital borrowers. It draws on real-world initiatives from over 40 countries carried out by regulators, providers, and other digital credit ecosystem actors, to tackle issues such as overindebtedness, fraud, data misuse, and inadequate redress mechanisms. The guide maps solutions across the customer journey and provider lifecycle, framing them around four phases of risk management: identification, prevention, mitigation, and resolution.

While the guide is primarily targeted at authorities and digital credit providers, it includes concrete calls to action for funders, researchers, and consumer advocates, recognizing their critical role in building a responsible and inclusive digital credit ecosystem.