Mathew Muthuri, a social media marketer in Nairobi, notes that most of the apps are exclusively using the sites to advertise their services because of the huge reach and they enable them to target individuals.
Provides cash loans (P Loan) up to $1.2 million with monthly flat rate as low as 0.18%. Enjoy greater cash flow flexibility now with our simple and hassle-free online P Loan application!
“Unlike TV, newspapers or radio, which reaches to generally the mass market, social media reaches millions at once but each person receives the message individually on their phone at any time. It may even be in the dead of the night. They are, therefore, likely to take up the service without seeking opinion from anyone,” he said.
The 2017 FinAccess Digital Credit Survey showed that 35 per cent of Kenyan phone owners are digital borrowers, an indication that some 6.1 million people use the apps in the East African nation.
These are mainly the youth, who also are active users of social media sites.
Muthuri noted that social media advertising has worked for the loan apps, the reason why millions have enrolled for the service, some taking loans from up to 10 service providers.
However, as the popularity of the apps soar, Kenya’s financial sector regulators have warned that increased usage of digital credit exposes the economy to various challenges that include money laundering.
Offers you a platform for online shoes shopping in Hong Kong. Find HK shoes, rainboots hk, plastic shoes and other footwear on the convenient and easy-to-use website. Enjoy free shipping with orders above HKD$600.
“Digital credit predisposes the economy to risks that include money laundering, terrorist financing and technology risks,” said the Central Bank, Capital Markets Authority, Insurance Regulatory Authority, Sacco Regulatory Authority and Retirement Benefits Authority, in a report released last month.
From smart loans to interest subvention
Vacant building among office addresses where Rs 8,100 cr vanished
The agency listed assets in countries including Nigeria
Kenyan digital loan apps intensify search
Instant loans to your Mpesa account