Size Of Digital Loans Shrink Against Growing Disbursements

 

By Kepha Muiruri

The size of loans issued through digital channels has shrunk even as the value of total disbursements continues to expand.

Disclosures by the KCB Group for instance saw the average ticket size of loans disbursed through Fuliza fell to Ksh.320 in six months to June compared to Ksh.400 previously.

The average ticket size for Vooma loans meanwhile fell to Ksh.21,327 from Ksh.23,000 previously while the ticket size on KCB M-Pesa was down at Ksh.4.822 from Ksh.9,200.

On the flip side, total loan disbursements via Vooma grew by 34 per cent from last year to Ksh.10.1 billion from Ksh.7 billion while disbursements on KCB M-Pesa were flat at Ksh.23 billion.

Disbursements via Fuliza meanwhile grew by 31 per cent to Ksh.57.7 billion from Ksh.44 billion.

Data from the NCBA Group reveals a similar rate of growth on Fuliza loan disbursements which stood at Ksh.288 billion in the six months.

While total disbursements have grown to mirror increased usage of digital loans, the shrinkage in ticket sizes means customers are borrowing lesser values at each go.

For KCB, ticket sizes on Vooma and KCB M-Pesa are larger than Fuliza given the better scoring of customers on the two products.

“Mobi and Vooma loan borrowers are our customers. We have more information on them and we are hence able to credit score them for higher credit limits,” stated KCB Group Chief Finance Officer Lawrence Kimathi.

“On the other hand, the ticket size for Fuliza will typically be lower because of the nature of customers being targeted.”