Mental Health Risks in Digital Debt Recovery: Insights from Nigeria's Digital Money Lending Sector

The proliferation of digital money lending, propelled by fintech innovations and data analytics, has revolutionized access to credit, particularly for the unbanked and underbanked sectors. In efforts to compel debt repayment, digital lenders resort to cyber coercion tactics, including cyberbullying, harassment, and stigmatization. While these methods may yield financial results, their psychological repercussions on debtors remain poorly understood. This study investigated the extent of psychological harm inflicted by cyber coercion tactics on the mental well-being of victims. The study employed a qualitative research design of scooping review of victims interviewed by Newspapers online. Method involved systematic searches in databases for studies on digital money lenders' impact on debtors' mental health in Nigeria, employed thematic synthesis, CASP tool for study quality, and sensitivity analyses. Extracted data using standardized forms, coded text, and developed descriptive and analytical themes. The results showed that digital money lenders in Nigeria use various stigmatizing tactics, including debt-shaming, cyberbullying, and defamation of character, to recover funds from debtors. These tactics have negative implications for the mental health of debtors, including depression, anxiety, and suicidal ideation.

Publication Details

Journal
Psychology Archives
Published
2024-08-14
DOI
https://doi.org/10.23668/psycharchives.15233
Primary Topic
Financial Literacy and Behavior
Type
article
Field-Weighted Citation Impact
0.00
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article

Mental Health Risks in Digital Debt Recovery: Insights from Nigeria's Digital Money Lending Sector

Psychology Archives
Financial Literacy and Behavior
article

Mental Health Risks in Digital Debt Recovery: Insights from Nigeria's Digital Money Lending Sector

article en

Abstract

The proliferation of digital money lending, propelled by fintech innovations and data analytics, has revolutionized access to credit, particularly for the unbanked and underbanked sectors. In efforts to compel debt repayment, digital lenders resort to cyber coercion tactics, including cyberbullying, harassment, and stigmatization. While these methods may yield financial results, their psychological repercussions on debtors remain poorly understood. This study investigated the extent of psychological harm inflicted by cyber coercion tactics on the mental well-being of victims. The study employed a qualitative research design of scooping review of victims interviewed by Newspapers online. Method involved systematic searches in databases for studies on digital money lenders' impact on debtors' mental health in Nigeria, employed thematic synthesis, CASP tool for study quality, and sensitivity analyses. Extracted data using standardized forms, coded text, and developed descriptive and analytical themes. The results showed that digital money lenders in Nigeria use various stigmatizing tactics, including debt-shaming, cyberbullying, and defamation of character, to recover funds from debtors. These tactics have negative implications for the mental health of debtors, including depression, anxiety, and suicidal ideation.

Psychology Archives
Peace, Justice and strong institutions
Openalex Percentile: Top 42%
Financial Literacy and Behavior
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