"We welcome regulation because it is a sign that the market is maturing. We are not against the regulations as some people might think," said Mr. Kevin Mutiso.
The Digital Lenders Association of Kenya (DLAK) has said that its members are not against the regulation of the sector. The association was speaking during the launch of the financial literacy journey at the Sarova Stanley Hotel.
“We welcome regulation because it is a sign that the market is maturing. We are not against the regulations as some people might think,” said Mr. Kevin Mutiso from the Digital Lenders Association of Kenya.
According to Mr. Mutiso, the coming of Covid-19 hit the digital lending sector hard. “At some point, we were almost lending zero to our customers but the sector has started picking up.” In 2020, digital lenders gave out 4,000,000 loans at an average of 4000 shillings.
To help Kenyans sail through the hard financial situation, the Digital Lenders Association of Kenya (DLAK) has launched a month-long financial literacy campaign dubbed MoneyMarch. The association says it through Kenyans learning financial literacy that they will be able to empower themselves.
“Financial literacy is is about making money an asset and not a danger for the customer. It is about empowering our customers and not burdening them,” said Mr. Ivan Mbowa, the General Manager at Tala Kenya.
“Within Tala app, we have created a financial literacy information where customers can see how other borrowers are getting financial assistance and how they are empowering themselves,” added Ivan Mbowa.
The 30-day campaign dedicated to bringing providers and consumers together in a conversation around financial health and wellness as Kenyans seek to rebuild their finances amid the post-pandemic economic fallout.
In the age of increased Cybercrime, digital lenders say they are working with other service providers to fight the vice. They say they have reduced Cybercrime activities within the sector by more than 80 percent. Identity theft has been a major challenge in the sector but telcos have really helped them out.