Digital lending platforms have been key in helping many Kenyan youths survive these tough economic times. Convenience and the timely manner in which these loans are issued have been a reliant factor that has got many of them glued. A solid credit platform to survive the future. However, these platforms have been called out for malpractices that have affected a number of Kenyans including exorbitant interest rates, and very strict terms and conditions.
But now stakeholders are working on a platform that will put to rest all these bad business behaviours and prepare them to survive n the coming future. The digital platforms have been encouraged to switch to this new platform as it is transparent customer-centric ethical with the and the pricing of credit need clear to the public. This will go long term in helping them building confidence and have incredible faith an important step towards realizing this growth.
In the new model, the stakeholders are looking to use data from the regulators to inform decisions that will work out for the good of the public. While the Credit Reference Bureau holds crucial information about borrowers and lenders, the information can be used to push for timelines. For instance, every one second at least 150 loans are processed. This piece information if given to lenders can help in restructuring their capital structure, repackage their loans and decide on a target population to lend most and what at what interest rate. With the new model, it will become easier to eliminate fraud and make the situation a win-win for both the borrower and the lender.