Digital credit may have promising features that can further contribute to financial inclusion. However, there is a lack of rigorous evidence on digital credit. This study aims to understand 1) the impacts of Airtel Malawi’s digital credit product Kutchova on borrowers, 2) the degree to which consumers are fully informed about these new products as well as the costs of taking out these loans, 3) the effect of having the access to mobile money savings account on demand for Kutchova loans, and 4) the characteristics of the consumers who take up Kutchova loans. This study will investigate these questions via a regression discontinuity design around the credit threshold (focusing on the effect of credit), and a randomized experiment (focusing on whether information or savings interventions reduce demand for credit). The findings will support policy makers and implementers in understanding the welfare impacts of digital credit and making critical decisions to enhance socio-economic development. Results forthcoming.
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