Digital credit has been instrumental in granting formal credit in ways that were not conceivable a decade ago. It has provided individuals with the tools to manage their day-to-day needs and working capital for small enterprises. Survey data reveals that over six million Kenyans have borrowed at least one digital loan. Beyond these daily use-cases, […]
Evidence from an evaluation of the impact of M-Shwari With its launch in 2007, M-PESA changed the way Kenyans transact with each other. In doing so, impact studies found that it significantly improved the ability of social networks to help people manage shocks1. Six years later, the launch of M-Shwari by the Commercial Bank of Africa (CBA) […]
The pricing, marketing and potential misuse of digital loans coupled with the extensive negative reporting of borrowers who have failed to repay these relatively small loans has raised a growing chorus of concern about their design and the adverse impacts they have on borrowers and the financial system more broadly.