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The Competition Authority of Kenya (CAK) conducted a credit market investigation and discovered that other digital credit providers were gradually departing the microloan segment by increasing loan sizes to customers in response to Fuliza’s arrival into the market.
Fuliza has recorded rapid growth since its launch
“While M-Shwari is the loan product most commonly used, Fuliza recorded the most active users, demonstrating its rapid expansion since being launched in January 2019. During this period, every other provider’s loans grew in size, suggesting a degree of market segmentation took place,” the CAK report observed.
Between January 2019 and March 2020, it’s entry shook up the digital credit market, with the platform’s disbursements increasing by 232 percent while the overall value of disbursements increased by 213%.
CAK discovered that the overdraft product expanded significantly over time to become the largest digital credit product in the market, appearing to crowd out several competitors over the review period.
