New research from Kenya and Tanzania reveals that digital credit is often used for consumption purposes and that delinquency and default rates are high, suggesting funders of digital credit markets should prioritize consumer protection.
It's been five years since Kenya launched its first digital credit solution. A new CGAP survey shows that one in four Kenyans has taken a digital loan, mostly for working capital and day-to-day consumption.
Digital finance is just beginning to realize its potential in the health care sector. Take a look at some early examples of how digital financial services are contributing to the goal of universal health coverage.
In Kenya, where nearly everyone knows about mobile money and a majority live within walking distance of an agent, why do nearly 2 in 10 adults lack access to formal financial services? And what can be done to reach them?
Bank accounts today once again outnumber mobile money accounts in Kenya -- by over 30 percent. Innovations like PesaLink have helped banks achieve this growth, showing that banks can thrive in the face of mobile money.
CGAP received nearly 200 proposals from digital financial services providers across Africa interested in piloting new products. A look at those proposals — from 30 countries — shows that innovations are spreading beyond hot spots like Kenya.
Lolem Boyo Emilat is a trader in Kenya’s Kalobeyei settlement, where mobile payments have transformed her small business. Could bringing mobile money to more traders like Lolem be an overlooked opportunity to advance financial inclusion?
A growing number of novice investors are starting to lend to their peers on digital platforms. New research out of Kenya suggests that providers may need to fundamentally rethink how they inform these lenders about risk.
As digital credit expands rapidly in East Africa and elsewhere, offering credit responsibly is becoming increasingly important. These insights from Kenyan merchants who use Kopo Kopo’s Grow cash advance product point toward some best practices for digital merchant credit.