Local digital lending development and the incidence of deprivation in Kenya

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Tetteh, Godsway Korku (2023) Local digital lending development and the incidence of deprivation in Kenya. Financial Innovation, 9 (1). 102. (https://doi.org/10.1186/s40854-023-00507-0)

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Abstract

In the developing world, vulnerable communities often lack access to regular income sources to cope with unforeseen events. Recent advancements in financial technology have enabled microcredit to be delivered via digital platforms. Although digital credit may quicken remote access to consumer credit without the need for collateral, little is known about its contribution to the welfare of underserved communities. This study examines the effects of local digital lending development on deprivation and explores the implications of these effects on rural inhabitants. The results show a negative association between local digital lending development and food deprivation on one hand and health deprivation on the other. The evidence suggests that local digital lending development can reduce the probability of food and health deprivation. Furthermore, the evidence reveals that inhabitants of rural communities benefit more from digital lending development. This study recommends the decentralization of financial inclusion policies as a pathway to promote digital lending at the local level.

ORCID iDs

Tetteh, Godsway Korku ORCID logoORCID: https://orcid.org/0000-0003-0900-4633;
  • Item type:Article
    ID code:86634
    Dates:
    Date
    Event
    31 December 2023
    Published
    21 August 2023
    Published Online
    27 April 2023
    Accepted
    16 November 2022
    Submitted
    Subjects:Social Sciences > Finance
    Department:Strathclyde Business School
    Depositing user: Pure Administrator
    Date deposited:31 Aug 2023 14:00
    Last modified:20 Nov 2024 13:23
    URI:https://strathprints.strath.ac.uk/id/eprint/86634
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