Published by MicroSave Consulting, the Social Performance Task Force, the Smart Campaign and Agence Française de Développement; September 2019; 103 pages; available at https://www.microsave.net/wp-content/uploads/2019/09/Digital-Credit-Kenya-Final-report.pdf
This report draws on first-hand data, secondary research and the use of data analytics to provide insights into the Kenyan digital credit sector from the perspectives of both customers and suppliers of digital credit. The authors highlight advances that have been
made as a result of the growth of the sector – such as increased financial inclusion – as well as some of the challenges that remain. To enable the “responsible delivery of digital credit,” the authors recommend that regulators, digital credit suppliers and market facilitators – such as mobile network providers – address issues such as data protection, identity fraud, digital exclusion and over-indebtedness. The proposed methods include “enacting data protection into law,” reducing digital exclusion by increasing the usage of low-cost phones, using risk analytics and machine learning to help identify cases of fraud, and penalizing providers whose customers regularly amass high levels of debt and have high rates of default.
By Jolene Khor, Research Associate
Sources and Additional Resources
MicroSave Consulting report
https://www.microsave.net/wp-content/uploads/2019/09/Digital-Credit-Kenya-Final-report.pdf
Agence Française de Développement homepage
https://www.afd.fr/
MicroSave Consulting homepage
https://www.microsave.net/
Social Performance Task Force homepage
https://sptf.info/
Smart Campaign homepage
http://www.smartcampaign.org/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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