Christian Ethical Response to The Challenges of Digital Financial Borrowing in Nigeria

Abstract

Digital financial borrowing is the money borrowed online through digital mobile applications, platforms or phones that are offered by financial lenders using the Internet. Due to the advancement in financial technology, banking and financial services and operations have been digitalized. The emergence of digital finance has rebranded banking and financial borrowing access and opportunities. People can now borrow money online, digitally and seamlessly. This development is applaudable because it eases traditional banking operations burdens and removes bottlenecks in borrowing and lending to finance business and personal needs. However, the attendant experiences from digital financial borrowing are worrisome and pose challenges to human well-being in developing economies, especially among Christians in Nigeria. Some of the experiences of digital financial borrowers are poor loan repayment, which may be due to high interest, breach of personal data policy and social shaming of defaulted borrowers by lending companies’ employees. The unvirtuous motives and characters of some borrowers, professionally unethical attitudes and loan recovery strategies are responsible for these challenges. This paper gives an overview of digital financial borrowing in Nigeria and discusses digital financial borrowing, which is characterized with features such as instant, automation, remote, consumer loans and short maturity. The paper argues that digital financial borrowing has assisted financial inclusion and contributed to Nigeria’s digital economy, it has however negatively impacted on borrowers’ personal, emotional, mental, marital, business, spiritual and moral well-being due to poor repayment or inability to repay, high interest, and social shaming of customers by digital loan officers. The paper concludes that Christians should act virtuously and ethically according to biblical instructions when dealing in financial borrowing, wisdom, honesty, godliness, discretion, patience and mutual respect are among Christian virtues to display in financial borrowing decisions, actions and relationships. It recommends that churches and church leaders should encourage financial education and literacy that enhance credit understanding and boost Christians’ financial wellness. It also recommends that Chartered Institute of Bankers of Nigeria, with other financial regulatory bodies in Nigeria should regulate the operations of lending companies and enforce acceptable professional work ethics and attitudes of digital lending companies’ employees to enhance friendly relationships with customers.