Teenage men and women in Kenya and South Africa adopt formal savings accounts at similar rates. But when they hit their 20s, men continue to adopt formal services while women begin gravitating toward informal services. Why?
A tool piloted by CGAP and 4G Capital reliably measures changes in borrower behavior to detect financial stress. If stress indicators are found to predict future repayment, the tool could also serve as an early warning system for issues like default.
Volatile gig income and inflexible loan repayment schedules can be a dangerous mix, as this ride-hailing driver in Nairobi learned from experience. His story serves as a cautionary tale to lenders and borrowers in the gig economy.
Gig workers in Kenya cite savings, loans and medical insurance as top financial services they would like to access via gig platforms. While platforms across Africa increasingly offer credit and insurance, savings appears to be under-supplied.
Kenya offers higher fees to providers that facilitate digital government-to-person payments in underserved areas. Today, this makes it easier to reach hundreds of thousands of low-income people with assistance during the COVID-19 crisis.
Gig workers in Kenya report major disruptions to business and depleted savings due to COVID-19 (coronavirus), while platforms signal eagerness to facilitate government-to-person payments or loans to hard-hit workers.
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.