Fintech and household resilience to shocks: Evidence from digital loans in Kenya

Tavneet Suri, Prashant Bharadwaj and William Jack

Journal of Development Economics, 2021, vol. 153, issue C

Abstract: Developing country lenders are taking advantage of fintech tools to create fully digital loans on mobile phones. Using administrative and survey data, we study the take up and impacts of one of the most popular digital loan products in the world, M-Shwari in Kenya. While 34% of those eligible for a loan take it, the loan does not substitute for other credit. The loans improve household resilience: households are 6.3 percentage points less likely to forego expenses due to negative shocks. Fintech tools can be a crucial way to improve financial access and household resilience.

Keywords: Digital loans; Regression discontinuity; Africa (search for similar items in EconPapers)
JEL-codes: O16 O30 O55 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:153:y:2021:i:c:s0304387821000742

DOI: 10.1016/j.jdeveco.2021.102697

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