More women turn to digital loans as smartphone use spurs financial inclusion
Tala’s report reveals that 26 per cent of all borrowers accessed digital credit for the first time, with women making up most of this group.
More women are embracing digital loans as improved smartphone use and familiarity with mobile finance continue to rise.
A recent review by Tala, a digital credit provider, shows that a significant number of first-time borrowers are women, indicating a reduction in the traditional barriers they faced in accessing financial services.
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Tala’s report reveals that 26 per cent of all borrowers accessed digital credit for the first time, with women making up most of this group.
“Access barriers are gradually lowering, which means that there is improved phone access, mobile literacy and exposure to digital finance,” Tala explained in response to this publication.
The growing involvement of women in small enterprises and side businesses is also increasing the demand for fast, flexible loans.
According to the report, women often use digital loans to cover household costs such as rent and food, school fees and supplies, medical bills, and expenses related to running small businesses.
The report’s findings closely match those of the Central Bank of Kenya’s 2024 FinAccess Household Survey, which highlights a shrinking gender gap in access to financial services.
The difference in exclusion rates between men and women dropped to 0.2 percentage points in 2024, down from 1.6 percentage points in 2021.
“Digital credit is expanding financial system participation for a group that traditional credit has underserved,” Tala said.
“It is also boosting women’s financial confidence, with 80 per cent of women surveyed saying they feel more confident making financial decisions,” it added.
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