New internet technologies have the potential to reduce barriers to credit, especially in developing countries. This paper examines how the spreading of 3G mobile internet technology has influenced access to banking credit and microcredit in Rwanda during the period 2008-15.
The spreading of mobile internet has fostered the transition from microcredit to banking credit in Rwanda. Specifically, 3G technology has helped disseminate information about the land registry reform, promoting the use of land certificates as collateral to obtain a loan. These results highlight the benefits of the interaction between technology and finance, showing how the former can facilitate the transition to banking credit by reducing information gaps.
