Formal lenders are filling the gap. While social networks continue to be the top source of finance for borrowers, we’re seeing a slight but steady rise in borrowing from formal sources. Borrowing from a bank or MFI has grown from 8-9% in early rounds to 16-19% in recent rounds. The increase may reflect the growing willingness of banks to lend, while the decrease in borrowing from friends and family may be demand or supply driven.
Employers are able to pay salaries. Salary payment has returned to the highest level we’ve seen – 75% of employers say they are able to pay their employees. This is likely driven by the ongoing recovery as well as the continued success of government schemes discussed in round 11.
Financial situation impact by region. We took a lose look at the impact on the financial situation by region- those in South West and South South are faring best, while those in South East and North East continue to struggle.