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?
From funding digital innovation to boosting digital literacy, here are some ways that development finance institutions and international financial institutions can accelerate the digitization of microfinance in Africa.
MTN launched open APIs for its mobile money service in 2018. Today, its APIs are being used by over 900 partners to offer everything from pay-as-you-go solar to e-commerce apps — generating revenue and new use cases for financial services.
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.
For the first time since CGAP began its funder survey, Sub-Saharan Africa in 2019 received more financial inclusion funding than any other region, with $7.6 billion in commitments. But new pressures on development budgets could impact the region.
In 2017, Zambia introduced a government-to-person (G2P) payments model that lets beneficiaries choose the provider they want to use to receive their payment. Today, the benefits to the recipients, providers and government are clear.
A new study out of Uganda offers strong evidence that lock-out technology can enable providers to sustainably lend to low-income customers, who may need credit for school fees and other critical expenses.
By partnering with pay-as-you-go (PAYGo) solar companies, electric utilities in Africa could expand low-income households' access to responsible consumer finance for refrigerators and other electric appliances.
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.
As customers, agents and digital financial services providers adjust to COVID-19, it’s becoming clearer what a resilient agent network looks like. Providers should take note to prepare for future crises.
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.