Digitization in Microfinance: Case Studies of Pathways to Success
Categories : Customer and Users of Digital Payments, Microfinance credit savings and insurance
For at least a decade, the microfinance industry has been watching and discussing changes in the financial sector driven by technology with a keen interest in the new potential for expanding the traditional microfinance model. This Working Paper by CGAPtakes a unique look at microfinance institution (MFI) innovation with digitization by featuring case studies on the following MFIs that successfully created measurable customer and business value through digitization: Amret (Cambodia), Bancamía (Colombia), Microfund for Women (Jordan), Al Kuraimi Islamic Microfinance Bank (Yemen), and FINCA Impact Finance (global). Based on these cases, the paper offers insights and recommendations of wider applicability to inspire and inform digitization initiatives by other MFIs regardless of their size, location, or maturity.