Digital loans to flourish in Sri Lanka
Sri-Lankan people show clear demand for borrowings, 9 out of 10 respondents feel the need to borrow extra money. Borrowers in Sri Lanka are open to alternative lending. The online credit services, along with other fintech products, are to experience swift growth in popularity, claim the analysts of Robocash Group.
Borrowing funds is a part of life for more than half of the surveyed respondents – the need for a loan comes up frequently (18%) or from time to time (33%). 56% of the respondents attest to having previous experience with online credit services, with a quarter (26%) having used them for the first time last year. The main reason for this is the considerable effect of the Covid-19 pandemic.
More than 37% answered positively when asked about the attitude towards alternative digital lenders. The growth potential of digital loans in the country would lie primarily in a greater degree of information transparency, improvements in the quality of service and loan terms. These reasons were named as main factors hindering deeper cooperation with services by 28%, 19%, and 19% of respondents, respectively.
The analysts of Robocash Group comment that the extent of financial inclusion in Sri Lanka is seemingly wide, with 68% of the whole national workforce is employed informally. The growing consumer demand requires more than the banking sector can offer. Thus, in an environment with a generally well-developed technological infrastructure, 50.8% Internet penetration, and 141.7% mobile connections, the digital loans appear to show favourable prospects and swift penetration into Sri Lanka.