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.
Easy access to agents makes people more likely to use digital financial services, but business as usual has left remote communities underserved. Here are some ways governments and providers are expanding agent networks in hard-to-serve areas.
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?
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.
National surveys in Mozambique and Tanzania show that women in agriculture do not diversify their incomes as much as men do. Equal access to financial services could help women to generate new sources of income.
The world of digital financial inclusion is growing quickly and outpacing capacity and resources to tackle it from a regulatory and supervisory standpoint. In response, CGAP and Toronto Centre piloted the first Digital Financial Inclusion Supervision training program in Tanzania.
Digital technologies are changing the financial inclusion landscape worldwide by revolutionizing access to finance, connecting hundreds of millions to formal financial services for the first time. Financial market regulators, supervisors and overseers are racing to keep pace with these developments.
Financial education is often delinked from customer actions–they may learn about interest rates now, but won’t need to borrow for months or even years. In rural Tanzania, an interactive SMS project brought information to farmers' phones, enabling customized learning in real time.
One ongoing debate in digital financial services concerns whether customers should be able to earn interest on mobile money wallets. The Bank of Tanzania decided that the benefit of interest earned by MNOs should go directly to customers. Here are key lessons to date.