Microfinance institutions are often unprepared to manage the changes that come with digitization. The good news is that through effective change management, they can digitize successfully and generate value for themselves and their customers.
From funding digital innovation to boosting digital literacy, here are some ways that development finance institutions and international financial institutions can accelerate the digitization of microfinance in Africa.
Rushing into technology solutions, without having the institutional capability in place to commercialize them, is a common mistake microfinance institutions make when digitizing. Here's how to avoid this costly misstep.
Access to funding has been a top priority for microfinance providers during COVID-19 . Debt investors have played a key role in supporting providers through the crisis. Now, as providers focus on recovery and growth, equity capital is needed too.
Customer centricity is key to ensuring a microfinance institution's digital solutions actually meet customer needs -- and there's ample evidence it's good for business. Yet many microfinance institutions overlook this critical aspect of digitization.
Kicking off a new series on how microfinance institutions can avoid common mistakes when digitizing, this post highlights the need to start with a clear business case and presents six proven ways digitization has benefited microfinance institutions.
Through flood, drought and famine, Bangladesh's microfinance industry has survived over the decades and continued to serve low-income customers in times of crisis. What has made Bangladeshi microfinance institutions so resilient?
Global survey data shows a sharp increase in nonperforming and restructured microfinance loans during the early months of the COVID-19 pandemic, but strong capitalization among most MFIs mitigates the risk of insolvency.
How are microfinance institutions responding to COVID-19? To what extent are they offering leniency to clients? Have they been forced to lay off staff or close branches? CGAP's pulse survey of microfinance institutions sheds light on these questions.
How is COVID-19 impacting the portfolios of microfinance institutions (MFIs)? Are MFIs facing a liquidity crisis? Is the solvency of institutions at risk? CGAP's global, monthly survey began two weeks ago, and answers are beginning to emerge.
One company offers microcredit. The other offers PAYGo financing for smartphones, tablets and solar home systems. In what may be a template for other microfinance institutions, they are helping each other to reach more low-income customers.