Digital Credit: Borrower Experiences and Emerging Risks

The advent of digital credit has extended access to instant, automated, remote credit to millions of borrowers. But who is accessing these loans? How are borrowers using the money? And to what extent are we seeing risks emerge such as late repayments and defaults, lack of transparency in loan terms and requirements, and debt stress or over-indebtedness? This blog series will shed new light on these largely unanswered questions, sharing evidence from CGAP's large-scale surveys of digital borrowers in Tanzania and Kenya and other sources that provide insight on consumers' experiences with digital credit.

An agent uses a tablet to show smallholders in Kenya a video about asset-backed borrowing
15 March 2018
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.
01 February 2018
A nationally representative phone survey shows who's using digital credit, how they're using it, and whether it's living up to the hype of helping families cope with emergencies.
Kenyan woman with mobile phone
21 August 2017
In a CGAP and M-Kopa pilot in Kenya, customers with greater control over their credit histories took up more credit and were more likely to pay it off in full.