Kenyans cite mobile loans as a contributor to an increased quality of life despite economic crunch
Tala Impact Report: 44% of borrowers surveyed state their ability to save has improved, making borrowers feel more in control and less stressed about their finances
Nairobi, Kenya, 21st February 2023: 4 out of 5 borrowers (84%) surveyed report an improvement in their overall quality of life because of Tala’s digital loans despite the country’s economy and cost of living being on razor’s edge. This is according to the lender’s 2022 impact performance survey that was carried out by 60 decibels, a global, tech-enabled impact measurement company, between October – November 2022.
According to the impact report, the top three self-reported outcomes for these 84% borrowers reporting an improved quality of life were: twenty seven (27%) talked about improved access to finance, twenty three (23%) mentioned the ability to afford household goods and bills and eighteen (18%) reported being able to buy inventory and stock for their small businesses. Of all parameters measured, Tala’s digital loans had the biggest positive effect on individuals’ ability to cover household costs.
While presenting the report findings to the media, Tala’s Director of Growth, Annstella Mumbi said; “These findings validate our core mission to bring the financially underserved Kenyan majority into the financial ecosystem and provide them access to affordable credit and flexible payment options. We are extremely motivated to see statistics indicating that 85% of our female borrowers surveyed reported an increase in their confidence in themselves and in their abilities and 60% of them said they now contribute to household decision making as a result of being financially enabled. That is what matters most to us at Tala.”
Ms. Mumbi also pointed out that one of the key discoveries from the survey was that despite the sky-rocketing cost of living, 44% of borrowers surveyed said their ability to save has improved, making borrowers feel more in control and less stressed about their finances because of Tala’s digital loans. 19% of borrowers surveyed reported that their ability to manage their finances has greatly increased and 13% said that their ability to make independent financial decisions has very much increased thanks to Tala.
On consumer data protection, 98% of respondents said that they understand Tala’s loan terms and conditions, while 97% indicated that they trust the fintech with their personal information.
Commenting on the results of the survey, Sasha Dichter, CEO and Co-founder of 60 Decibels said, “We are delighted to partner with Tala on this important work. It’s exciting to see Tala outperform the 60 Decibels Financial Inclusion Benchmarks on a number of core indicators, including First-time Access, Access to Alternatives and Customer Satisfaction. It also speaks volumes that a market leader like Tala is taking the step to listen directly to their customers about social impact in such a rigorous fashion. It means that the company, and the market, see that offering a service at scale is just the first step. To truly understand impact, we need to listen directly to customers, so we know we are building financial inclusion solutions that solve real problems for people.”
“It is heartening to see that our efforts of promoting responsible finance in boosting resilience amongst the underbanked Kenyans are paying off. But there is still lots more to do. At Tala, customers are co-creators of our products and their interests always sit at the heart of our decision-making, therefore, with these findings our work is clearer now more than ever as our customers have spoken on what they need improved and on what is of utmost importance to them, that is what we will focus on in order to deliver our promise of spreading financial access in Kenya,” Concluded Munyi Nthigah, Tala’s General manager.
Methodology: Tala commissioned 60 Decibels to conduct 250 phone interviews with Tala’s digital loan borrowers in Kenya..60 Decibels is a global, tech-enabled impact measurement company that brings speed and repeatability to social impact measurement and customer insights.
For further information contact;
Valerie N Mumia
E: valeriemumia@unchartedpr.com
M: 254 704658936
About Tala
Tala is a global technology company building the world’s most accessible financial services. More than 7.5 million people across Kenya, the Philippines, Mexico, and India, have used Tala products to start and expand small businesses, manage day-to-day needs and pursue their financial goals with confidence. Tala has raised more than $350 million from visionary investors including Upstart, the Stellar Development Foundation, RPS Ventures, the J. Safra Group, IVP, Revolution Growth, Lowercase Capital, and PayPal Ventures.
About 60 Decibels
60 Decibels is a global, tech-enabled impact measurement company that brings speed and repeatability to social impact measurement and customer insights. We provide genuine benchmarks of impact performance, enabling organizations to understand impact relative to peers and set performance targets. We have a network of 1,000+ researchers in 80+ countries, and have worked with more than 800 of the world’s leading impact investors, companies, foundations, corporations, NGOs, and public sector organizations. 60 Decibels makes it easy to listen to the people who matter most.