A youth applying for a loan. PHOTO | FILE | NATION MEDIA GROUP
Borrowers aged between 30 and 40 control more than a third of
fast-growing mobile loans that a new survey shows are largely controlled
by banks.
A survey by Creditinfo CRB Kenya Ltd, one of
the three credit reference bureaus, shows borrowers in the age bracket
accounted for 31 percent of 19.1 million mobile loans dished out between
November 2018 and April 2019.
Borrowers aged 25 and
below came second with a 21 percent share, while those aged between 26
and 30 as well as the 41 and 50 cohorts commanded a market share of 19
percent each.
“Young people will often be scored lower
since their analytics will show fewer revenue streams and lower money
velocity compared with their counterparts in the older demographics who
will likely be earning from a salary or a business income,” Creditinfo
chief executive Kamau Kunyiha said.
Only 8 percent of
the loans were dished out to borrowers aged 51 to 60 while a paltry
three percent of the loans went to those aged 61 and above.
The
analysis indicates mobile loan apps run by commercial banks accounted
for 92.8 percent of the Sh112.2 billion advanced over the six months.
The findings are based on credit reports on 4.5 million
borrowers submitted by 13 lenders, one of which controlled 66 percent of
the borrowers.
“Our data also shows that the banking
sector dominates the mobile lending space by a staggering 93 per cent
while the other seven per cent is lent out by digital mobile apps,” said
Mr Kunyiha.
“Since banks are regulated, we can, therefore, deduce that most of the mobile lending in the Kenyan market is regulated.”
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