Introduction

The explosive growth of digital lending has revolutionized the financial services industry, offering unprecedented access to credit for millions of individuals and businesses. This rapid innovation, however, has outpaced traditional regulatory frameworks, creating a complex and evolving landscape of legal and ethical challenges. Ensuring full compliance with a myriad of local and international regulations is not just a legal obligation but a cornerstone of building trust with customers and safeguarding the integrity of the financial system. The ability to navigate this intricate web of rules and standards is a critical skill for any professional involved in the digital lending space.

This comprehensive program is designed to equip you with the knowledge and practical skills to manage regulatory compliance in the dynamic world of digital lending. We will explore key regulations from a global perspective, analyze their impact on business operations, and provide a practical framework for implementing effective compliance programs. You will learn how to identify potential risks, implement robust controls, and leverage technology to automate compliance processes. By the end of this course, you will be able to design a compliance strategy that not only meets legal requirements but also supports business growth and innovation.

Duration: 10 Days

Target Audience

• Financial risk analysts
• Compliance officers
• Legal professionals
• Fintech product managers
• Internal and external auditors
• Data scientists in finance
• Credit risk managers
• Operations managers
• Cybersecurity professionals
• Regulatory affairs specialists

Objectives

• Understand the core concepts of digital lending.
• Master the principles of a risk-based compliance framework.
• Analyze different types of legal and ethical risks.
• Learn to build and validate risk models.
• Use quantitative tools for risk detection.
• Understand the regulatory framework governing these practices.
• Develop a framework for ethical data use.
• Assess the impact of new technology on compliance.
• Understand the ethical implications of financial transactions.
• Use machine learning for predictive modeling.

Course Modules

Module 1: Foundations of Digital Lending and Compliance

• The ecosystem of digital lending.
• Common types of digital lending models.
• The importance of a risk-based approach.
• Understanding the regulatory lifecycle.
• The role of technology in compliance.

Module 2: Data Privacy and Protection

• The importance of a transparent and fair credit risk framework.
• The unique challenges of using alternative data.
• The difference between traditional and algorithmic lending.
• The role of technology in lending risk.
• The impact of a changing economic environment.

Module 3: Cybersecurity Risks

• The importance of a clean and reliable dataset.
• The use of internal and external data.
• The role of alternative data.
• The challenges of working with limited historical data.
• The use of data visualization tools.

Module 4: Anti-Money Laundering (AML) and Know Your Customer (KYC)

• The principles of an econometric model.
• The use of time series analysis and regression.
• The importance of a reliable dataset.
• The validation and back-testing of models.
• The challenges of working with limited historical data.

Module 5: Fair Lending and Consumer Protection

• The principles of a machine learning model.
• The use of statistical methods and machine learning.
• The importance of a reliable dataset.
• The validation and back-testing of models.
• The challenges of working with limited historical data.

Module 6: Regulatory Reporting and Auditing

• The concept of scenario analysis.
• The role of stress testing in risk management.
• The benefits for both lenders and regulators.
• The importance of a robust technology platform.
• The challenges of implementing these solutions.

Module 7: The Regulatory Landscape

• An introduction to key financial regulations.
• The role of regulators in overseeing digital banks.
• The legal challenges of cross-border transactions.
• The importance of a robust compliance program.
• The ethical implications of financial transactions.

Module 8: Ethical AI and Bias Mitigation

• The principles of ethical AI in lending.
• The use of counterfactual explanations.
• The importance of a human-in-the-loop.
• The challenges of using these tools in production.
• The future of ethical AI.

Module 9: Portfolio Risk Management

• The concept of portfolio risk management.
• The role of diversification in reducing risk.
• The types of portfolio optimization techniques.
• The importance of a data-driven approach.
• The challenges of a rapidly changing market.

Module 10: Capstone Project Part 1: Design

• Defining a specific lending portfolio for modeling.
• Mapping the data requirements and model architecture.
• Outlining the key technical and analytical requirements.
• Creating a detailed project plan.
• Presenting the design to a mock review board.

Module 11: Capstone Project Part 2: Development

• Implementing a model for a chosen asset.
• Using the model to evaluate a sample of transactions.
• Analyzing the model's performance on key metrics.
• Building a presentation to explain the analysis.
• Documenting all assumptions and data sources.

Module 12: Capstone Project Part 3: Presentation

• Presenting the full analysis of the chosen lending portfolio.
• Discussing the risks and benefits of the model.
• Proposing a plan for model improvement.
• Q&A and peer feedback session.
• Receiving expert recommendations and insights.

Module 13: Emerging Trends

• The use of blockchain in lending.
• The role of AI in risk assessment.
• The evolution of lending instruments.
• The impact of new data sources on risk assessment.
• The future of lending risk.

Module 14: Case Studies

• A case study of a major digital bank.
• A case study of a fintech's risk management.
• A case study of a financial institution's regulatory challenges.
• The lessons learned from past credit cycles.
• The importance of a robust framework.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.