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.

Document Information

Document Type Presentation
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
Related Resources