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More women tapping digital financing for the first time
According to the report’s findings, the top reasons for taking digital loans by women are to cater for household expenses such as food and rent, school fees and supplies, small business operations, and medical bills.
Improved smartphone penetration and exposure to digital finance have seen more women take digital loans for the first time.
A review by digital credit provider Tala showed an increase in the number of first-time borrowers, the bulk of whom are women. The findings signal fading gender barriers to access to financial services, specifically digital credit.
In its report, Tala said that 26 percent of borrowers reported first-time access to a digital loan, with females forming the bulk.
“Access barriers are gradually lowering, which means that there is improved phone access, mobile literacy and exposure to digital finance,” Tala said in response to this publication’s questions.
“Many women borrowers waited until products built a reputation for safety and reliability, hence trusting the product completely. There is also growing participation of women in small businesses and side hustles, which is creating more demand for fast, flexible credit.”
According to the report’s findings, the top reasons for taking digital loans by women are to cater for household expenses such as food and rent, school fees and supplies, small business operations, and medical bills.
Closing gaps
Findings from the report closely mirror the results of the 2024 Finaccess household survey by the Central Bank of Kenya, which identifies gender-based disparities in access to financial services and shows closing gaps.
The gap in exclusion rates on formal financial services among males and females decreased to 0.2 percentage points in 2024 compared to a 1.6 percentage points gap in 2021.
“Digital credit is expanding financial system participation for a segment historically underserved by traditional credit,” Tala said. “It's also giving women a financial confidence boost. 80 percent of women in the survey said they feel more confident making financial decisions.”
