That's the problem with lending in these parts of the world, there's no unified metric of measuring a person's credit score so lending businesses will have a hard time turning in a profit. It's hard to get a credit history of the people or have some asset against them if they can't pay back the loan. My hope is that utilising blockchain technology and crypto will help solve that in the future.
You are viewing a single comment's thread from:
I think it has to do with sophisticated of economy. Most African countries aren't sophisticated enough to actually establish a unified metric credit score. These loan apps wants to take advantage of loaning as a business opportunity, but sadly people would get these money and trying to escape payment.
Right! The business opportunity can't work well with the lack of a sophisticated economy. Borrowers will get the money and not be able to repay it or the intention of not repaying it in the first place.