PODCAST | New study shows short-term credit extensions are down 20%

South Africa News News

PODCAST | New study shows short-term credit extensions are down 20%
South Africa Latest News,South Africa Headlines
  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 68 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 63%

Mudiwa Gavaza is joined by Altron Fintech’s Johan Gellatly and Keith Lockwood, an independent economic consultant

The contraction of net credit extension generates negative multiplier effects throughout the economy. Picture: 123RF/ALEKSANDR DAVYDOVOur host Mudiwa Gavaza is joined by Johan Gellatly, MD of Altron Fintech, and Keith Lockwood, an independent economic consultant and faculty member at business school GIBS.

Altron recently launched a new index, called the Altron Fintech Short-term Credit Impact , which was created in partnership with Lockwood.The index is meant to provide assistance to “credit providers in the short-term credit market in their assessment of risk and credit extension, and in building a deeper understanding of the role that this form of credit plays in the SA economy and society”.The key finding of the study is that short-term credit extension is was down 20%.

Lockwood says the contraction of net credit extension generates negative multiplier effects throughout the economy. He attributes part of this result to the drop in total employment during the pandemic, down to 1.4-million jobs, as well as the decline in average real incomes in SA. Gellatly, whose unit provides software solutions for micro-lending companies in SA, says while short-term credit makes up a very small share of total consumer credit, it is an important market as it provides first-time access to credit to many people.

Topics of discussion include: how the Afsci index was created; Altron’s reasons for creating an index; key findings from the first index results; ways in which the data can be applied in business and economics; the importance of micro lending in SA; and a comparison of Altron’s other index released in August.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

BDliveSA /  🏆 12. in ZA

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

South America's Volkswagen Virtus here in 2022 as new Polo Sedan?South America's Volkswagen Virtus here in 2022 as new Polo Sedan?The South American Polo-esque looks could make way for the same styling as the refreshed South African model, but expect details to only emerge next year.
Read more »

ADVENTURE DRIVE: 1000 dusty kilometres in the new Ford Ranger StormtrakThe new Ford Ranger Stormtrak has arrived, and what better way to put it through its paces than to head into the interior of the Eastern Cape on dirt?
Read more »

Honda N7X Concept becomes all-new BR-VHonda N7X Concept becomes all-new BR-VSwitch from MPV to SUV bodystyle has given the BR-V a distinct mini-CR-V appearance.
Read more »

New Volkswagen Caddy range to go on sale in NovemberVolkswagen SA confirmed on Tuesday that its fifth-generation Caddy will go on sale from November 2021. Built on the same MQB platform as the Golf 8, the all-new Caddy offers increased space, updated technologies as well as fresh exterior and interior styling
Read more »

New Volkswagen Caddy detailed ahead of November launch in SANew Volkswagen Caddy detailed ahead of November launch in SASix derivatives will be offered, the biggest since the Caddy's switch from a bakkie to panel van at the turn of the century.
Read more »



Render Time: 2025-03-23 12:14:36