The Next Wave: The age of lending to strangers is ending

The Next Wave: The age of lending to strangers is ending

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First published June 28, 2026

The first generation of African digital lenders believed it had found banking’s blind spot. Millions of people earned money, ran businesses and moved cash around every day, yet remained invisible to lenders because they lacked collateral, formal employment or a long relationship with a bank. Technology promised to close that gap. If banks lent against paperwork, fintech would lend against data.

It was one of the easiest stories in African tech to believe because the numbers appeared to support it. Credit penetration remained low by global standards, large parts of the economy operated informally and traditional lenders had little appetite for small borrowers. The total addressable market looked enormous. If hundreds of millions of people lacked access to formal credit, then surely the opportunity for digital lenders was measured in the tens of billions of dollars.

Originally published by TechCabal.

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