The Institute of Statistical, Social and Economic Research (ISSER) has called for a transparent and data-driven framework to guide how interest rates are determined in Ghana’s expanding digital credit market.
The call was made by Prof. Peter Quartey, Director of ISSER, during the Fintech Stakeholder Forum in Accra, held under the theme “Harnessing Ghana’s Fintech Potential: Regulatory Frameworks for Digital Credit and Digital Assets.”
Prof. Quartey said while digital lending has improved financial access for many Ghanaians, the absence of clear rules on how interest rates are set allows some lenders to charge “anyhow”, often without borrowers fully understanding the terms.
“There must be a consistent, data-driven framework that defines how interest rates are determined in digital credit markets,” he said. “Without it, we risk pushing vulnerable consumers deeper into financial distress.”
He explained that ISSER’s market readiness study uncovered worrying trends, including borrowers taking loans from multiple online platforms with little transparency on repayment terms or total costs. Such practices, he warned, could trap consumers in cycles of debt.
Prof. Quartey emphasized that regulating how interest rates are determined is not about limiting innovation but ensuring fairness and sustainability in the digital finance ecosystem.
“Interest rate regulation doesn’t mean stifling innovation,” he explained. “It means creating rules that protect both borrowers and lenders, so the system grows on solid ground.”
He urged the Bank of Ghana and relevant institutions to integrate credit scoring systems and data-sharing mechanisms into the digital credit framework to ensure that lending decisions and interest rates reflect borrowers’ risk profiles rather than arbitrary pricing.
According to ISSER’s findings, 42 percent of digital finance users expressed concerns about unfair charges, fraud, and data misuse, issues that could erode trust in the fintech sector if left unaddressed.
Prof. Quartey underscored that Ghana’s fintech growth must rest on a strong foundation of financial literacy, consumer protection, and fair pricing
