Knowledge that Transforms

To mitigate information asymmetry about borrowers in developing economies, digital lenders use machine-learning algorithms and nontraditional data from borrowers’ mobile devices. Consequently, digital lenders have managed to expand access to credit for millions of individuals lacking a prior credit history. However, short-term, high-interest digital loans have raised concerns about predatory lending practices. To examine how digital credit influences borrowers’ financial well-being, we use proprietary data from a digital lender in Kenya that randomly approves loan applications that would have otherwise been rejected based on the borrower’s credit profile. We find that access to digital credit improves borrowers’ financial well-being across various mobile-phone-based well-being measures, including monetary transactions and balances, mobility, and social networks as well as borrowers’ self-reported income and employment. We further show that this positive impact is more pronounced when borrowers have limited access to credit, take loans for business purposes, and obtain more credit.

The successful candidate will teach 24 credits per academic year, including courses within the

Business and Economics Department invites applications for a full-time faculty position (open rank) to begin August 2024.The successful candidate can expect to teach courses primarily in the areas of accounting.The teaching load for the position is 24 credit hours per academic year, normally three courses each semester, along

U WORLD is hiring accounting subject matter experts to help write test