Thread by @surambaya

Some insights on digital lending/borrowing in Kenya
1/
Despite all the brouhaha surrounding digital lending, M-Shwari still commands 80%+ of the digital lending market. If you layer on Fuliza, that number is probably closer to 90%

A short thread.....

1a/
This also means that deposit accounts at CBA bank have spiked in ways that only their competitors could hope for

1b/
This meant that at one point CBA held a third of all deposit accounts and a quarter of all loan accounts in the country

Total all banks

2/
The average loan was Sh4,000 a couple of years ago and that is probably closer to Sh5,000 today

3/
And the amount ranged from Sh3,113 to Sh4,358 depending on the borrower's income level
Not very much variance

4/
On average,the most vulnerable mobile owners are neither more common nor more active users of digital credit than the least vulnerable

However, among the poorest 40% of the mobile owning population, more vulnerability is associated with less digital borrowing.

5/
As expected, Urban males tend to borrow more than everyone else

6/
And not surprisingly, employed people tend to be the highest proportion of digital borrowers in their midst

7/
The asset richest 20% have the highest tendency to be digital borrowers, coinciding with higher spending patterns against lower relative liquidity

8/
People with higher education attainment tend to have a higher tendency to resort to digital borrowing

9/
And of course this dispenses with the oft-repeated tale that digital lending is aiding the most financially vulnerable members of society

10/
Source: DIGITAL CREDIT IN KENYA: Evidence from demand side surveys
-FSD Kenya
s3-eu-central-1.amazonaws.com/fsd-circle/wp-…

Speaking of which, Overall, about 1 in 2 digital borrowers reported to have paid a loan late while 12.5 percent reported to have defaulted on a loan.

The highest default rates are reported amongst rural males under 30 and urban feels under 30.