Digital credit allows borrowers without formal credit histories to access small, short-term loans remotely and automatically. While this offers the potential for millions of unbanked individuals to access formal loans for the first time, there is little evidence for transformative effects on welfare, measured impacts are small, and consumers are often uninformed about loan terms. Read more
Blog » The Impact of Digital Credit in Low-Income Countries
The Impact of Digital Credit in Low-Income Countries
Digital credit allows borrowers without formal credit histories to access small, short-term loans remotely and automatically. While this offers the potential for millions of unbanked individuals to access formal loans for the first time, there is little evidence for transformative effects on welfare, measured impacts are small, and consumers are often uninformed about loan terms. Read more