Difference between formal and informal credit
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What is the difference between formal and informal credit? We are joined by Reabetswe Riba, Executive Head for the Foundation Market at Old Mutual to help us understand the difference better.
Chapters
- 00:25 Introduction for Reabetswe Riba and context around the foundation market
- 01:42 What is the difference between formal and informal credit?
- 02:05 Why do people often delay in planning for funerals?
- 02:49 Do informal lenders finance a lot of payday loans?
- 04:03 The challenges people face in the foundation market
- 05:23 Why do people approach informal lenders?
- 06:39 The factors involved in the rise in informal lending
- 09:31 What role do payday lenders play in the foundation market space?
- 11:16 Payday loans can land people in a debt trap – is this true for many people in the foundation market space?
- 13:52 Informal lenders and covering the cost of funerals
- 15:59 How do burial societies work?
- 20:05 Why do people often delay in planning for funerals?
- 21:26 Why it’s important to get insurance from a trustworthy and reputable provider
- 23:46 How do you find the right financial services provider?
- 25:24 The important role regulators play in this space
- 27:13 Where do you go if you want to lay a complaint against a financial services provider?
- 28:14 Is Old Mutual having to play a bigger role in educating people?
- 29:07 What does it mean to be over insured?
- 31:38 The importance of budgeting
- 33:56 Closing
