Digital credit for economic development, a case of ISBI’s model of lending to micro-entrepreneurs in the Eastland’s of Nairobi
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It is evident that more people are connected continue to be connected the Internet than ever before. There are various digital devices that are used nowadays to connect to the internet for work and other aspects of life. Broadband connectivity is one of the means of transforming and achieving the three pillars of sustainable development through digital credit. Even though there is a rapid growth in connectivity, it is estimated that 2.9 billion people are not connected, most of them in developing countries. Digital credit is a promising form of financial inclusion for low income earners in developing countries because of low access to formal credit and the limitations of the semi-formal credit options. Digital credit is becoming popular because of its remote, instant and automated protection against the traditional consumer and microenterprise credit models. This paper discusses the ISB-KIVA model of digital credit where a total of $32,325 was borrowed by 72 micro-entrepreneurs within a period of 24 months. The data for this research was compiled from the Kiva website. A systems theory is used in this research.