Next Article in Journal
A Note on Universal Bilinear Portfolios
Previous Article in Journal
The Moderating Role of Perceived Risks in the Relationship between Financial Knowledge and the Intention to Invest in the Saudi Arabian Stock Market
Previous Article in Special Issue
Industry 4.0 in Finance: The Impact of Artificial Intelligence (AI) on Digital Financial Inclusion
Article

The Role of Betting on Digital Credit Repayment, Coping Mechanisms and Welfare Outcomes: Evidence from Kenya

1
International Finance Corporation, World Bank Group, Washington, DC 20433, USA
2
Institute for Intelligent Systems, University of Johannesburg, Johannesburg 2092, South Africa
3
Department of Economics and Finance, University of the Free State, Bloemfontein 9301, South Africa
*
Author to whom correspondence should be addressed.
Int. J. Financial Stud. 2021, 9(1), 10; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs9010010
Received: 7 August 2020 / Revised: 8 November 2020 / Accepted: 18 November 2020 / Published: 1 February 2021
(This article belongs to the Special Issue The Financial Industry 4.0)
Digital financial services and more importantly, mobile money, have become an important financial innovation to advance financial inclusion in developing and emerging economies. While digital financial services have improved the lives of many Kenyans, to the growing betting segment of the Kenyan population, these innovations have also brought great convenience to betting. The innovations have allowed easy access to digital credit which can be used for betting. Despite betting or gambling being a widely studied area, particularly in developed countries, little is known about its interaction with financial innovations such as digital financial services in developing and emerging economies. Using data from a 2017 digital credit survey in Kenya, this study investigates if bettors are more likely than non-bettors to be financially distressed or engage in welfare-undermining coping strategies and potentially experience inferior welfare outcomes. The study uses a representative sample of 1040 digital borrowers, of which 304 were digital bettors. Using multivariate logistic regressions, the study found that, after controlling for socio-economic and demographic factors, bettors are significantly more likely than non-bettors to be financially distressed, engage in welfare undermining coping strategies, and have inferior welfare outcomes. View Full-Text
Keywords: digital financial services; digital credit; betting; financial distress; coping strategies; welfare outcomes digital financial services; digital credit; betting; financial distress; coping strategies; welfare outcomes
MDPI and ACS Style

Chamboko, R.; Guvuriro, S. The Role of Betting on Digital Credit Repayment, Coping Mechanisms and Welfare Outcomes: Evidence from Kenya. Int. J. Financial Stud. 2021, 9, 10. https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs9010010

AMA Style

Chamboko R, Guvuriro S. The Role of Betting on Digital Credit Repayment, Coping Mechanisms and Welfare Outcomes: Evidence from Kenya. International Journal of Financial Studies. 2021; 9(1):10. https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs9010010

Chicago/Turabian Style

Chamboko, Richard, and Sevias Guvuriro. 2021. "The Role of Betting on Digital Credit Repayment, Coping Mechanisms and Welfare Outcomes: Evidence from Kenya" International Journal of Financial Studies 9, no. 1: 10. https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs9010010

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop