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Tag: "Kenya"

Nov28

The new value proposition of tech enabled microloans

The dizzying growth rate of some digital-micro-loan (DML) products raises the question: are they the new microcredit to the poor? Serving low-income clients with low value credit wasn’t an attractive value proposition for most formal financial institutions (FIs). MFIs were among the few that honed the skills to serve them, though doing so requires a costly high touch method. But tech-enabled micro loans can be offered instantly through low touch service at a lower cost, making them an attractive proposition and heating up competition as new players enter the market.

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Boulder Institute of Microfinance

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