Why microlenders are under the regulatory spotlight?

Why microlenders are under the regulatory spotlight?

Microlenders face two regulators and one big risk

Why microlenders are under the regulatory spotlight - SME Tech Guru

By Sameer Kumandan, MD of SearchWorks360 Microlending is the practice of providing small loans to individuals or groups who can’t access traditional financial services. In South Africa, microlenders have become a critical lever for financial inclusion, especially for people without stable employment, credit histories, or access to collateral. These loans enable small business owners and informal traders to start or grow their ventures, and help …

Why Microlenders in South Africa Are Under Regulatory Spotlight - Techish Kenya

South African microlenders face rising regulatory pressure under FICA and NCA; technology offers efficient solutions for compliance and risk management.

Why microlenders are under the regulatory spotlight

Microlenders in South Africa play a crucial role in financial inclusion, offering small loans to individuals and businesses who lack access to traditional financial services. However, they face increasing regulatory scrutiny under both the Financial Intelligence Centre Act (FICA) and the National Credit Act (NCA). This article explores the compliance challenges microlenders face and the role of technology in helping them meet regulatory requirem…