Is technology likely to be a factor of exclusion rather than one of financial inclusion?
Author: Maiyo, J. & Lebel, A.
Posted by: Le Portail Microfinance
What responsibilities for microfinance institutions and technological providers?
The rapid growth of consumer credit companies based solely on proprietary algorithms and the non-traditional data processing (social media, access to the directory or applications regularly used on the customer's smartphone) has shown the limits of a purely technological model. In 2016, the acquisition of the Opportunity International network, who was facing financial difficulties, by the South African MyBucks, the result of the merger of several consumer credit companies, was the subject of debate. In Kenya, still in 2016, 400,000 people were blacklisted by the Transunion risk center for unpaid debts of less than USD 2, while many borrowers did not realise they were taking out a credit via their mobile telephones.
Is therefore technology more a factor of exclusion than of one of financial inclusion?