Making Digital Credit Truly Responsible
This resource appears in:
Digital credit has emerged as a new and profitable service offering that has a great potential to increase financial inclusion. Yet, if it is not carefully managed, digital credit runs a great risk to exclude, over-charge, and create over-indebtedness.
During the first half of 2019, The Smart Campaign and the Social Performance Task Force (SPTF) commissioned Microsave Consulting (MSC) to study the current state of digital credit in Kenya and formulated recommendations for how to make digital credit delivery safer and more customer-centric. We propose that regulations be put in place such that delinquencies and defaults among loans below some fixed amount not be reported to the credit bureau so as not to unduly burden consumers. We also call for increased public awareness campaigns about how credit bureaus work and the consequences of default so consumers will better understand the risks involved in borrowing.
|Year of Publication||2019|
|Publisher||Center for Financial Inclusion at Accion; SPTF, Agence Francaise de Developpement, MSC|
|Number of Pages||105 pages|
|Region / Country||Global /|
|Primary Language||English (en)|
|Keywords||Consumer Protection, Credit Provision, Customer Centricity, Nano Loans, Interest Rates, digital financial services|