We define the digital credit industry as one where consumers, providers, policy makers and other intermediaries facilitate or influence the requisition and provision of digital loans. Innovations in the space have created opportunities for more diverse groups of consumers to access formal credit facilities, and do so very conveniently. Providers on the other hand benefit from the lower customer acquisition, appraisal and distribution costs offered by digital, cutting edge solutions. As with any other fast paced industry, challenges exist. A data driven approach to providing solutions for consumers is needed.
With the above in mind, key questions that need answering emerge:
1. Where does Digital Credit help and where does it harm?
2. What does the industry’s growth trajectory mean for the underserved consumer? Will women continue to be left behind?
3. What market changes are needed for the industry to reach its full potential?
The Busara Center is brings together a group of industry experts with perspectives from the private sector, market development, consumer protection and the research community to attempt to answer these critical questions. The discussion will influence your perspectives on the status quo of digital credit, and where it could be going. Further, and for the benefit of the consumer, it explores how it should be influenced to maximize the welfare of people that could benefit from it.
Themes covered in this discussion emerged from Busara’s Digital Credit Landscape Report; accessible on this link: https://busaracenter.org/report-pdf/Gates-Digital-Credit-Report.pdf
1. Aida Sykes, Private Sector Development Specialist, Gender & Financial Inclusion
2. Ivan Mbowa, East Africa MD, Tala
3. Rafe Mazer, IPA Project Director, Consumer Protection
4. Jonathan Robinson, Scientific Director, Digital Credit Observatory
5. James Ogada, Senior Associate, Busara