Digital Lending and Loan Portfolio of the Listed Commercial Banks in Kenya

Abstract

Digital lending has served to ease activities relating to the process of acquiring loans from various financial lending institutions in Kenya. Several concerns have been raised including the need to regulate the provision of digital loans to safeguard the banks from making losses and preventing customers from exploitation. Current studies have emphasized the effect of mobile lending on the Kenyan banks' financial performance. The study's general objective involved analyzing the effect of digital lending on the loan portfolio of the listed commercial banks. The project embraced a descriptive research design. The target population involved listed commercial Banks that embrace digital lending. The findings revealed that the length of digital lending had a favorable but statistically negligible influence on the loan portfolio of listed commercial banks. Also, the findings revealed that that the correlation between digital lending duration and amount of non-secured loans was positive and significant (r = 0.578, P = .000<.05). Also, the study underlined that digital lending costs (r = -0.622, P = .000<.05) had a negative and significant correlation with amount of non-secured loans.