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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/html/wp-includes/functions.php on line 6114UNCDF SHIFT commissioned MSC to conduct a study on the status of digitization in the microfinance sector in Bangladesh. Along with the interventions that MFIs will undertake, the sector also needs policy-level changes that enable the digitization of microfinance institutions. This policy brief presents the challenges that the microfinance sector in Bangladesh faces and interventions that would create an enabling environment for digital transformation.
UNCDF’s Landscape Assessment of Retail Micro-Merchants in Bangladesh has shown that retail micro-merchants require access to financial services and credit in particular. Their need for financial services is high, and microfinance institutions are well placed to meet the growing credit needs of micro-merchants. These micro-merchants borrow predominately from microfinance institutions. With the introduction of digital technologies, microfinance institutions have a new opportunity to expand financial services further to micro-merchants by embracing digital and mobile technologies in their operations. In this context, UNCDF SHIFT commissioned MSC to conduct a study on the status of digitization in the microfinance sector in Bangladesh.
In the course of the research, we identified that while most MFIs use a loan management system, only a handful of MFIs have taken steps to digitize transactions. There are very few of these initiatives at pilot stages. Only three of the 16 surveyed MFIs have rolled out pilot tests to use the digital field application for loan origination. In conclusion, MFIs are on a digital journey but are yet to explore many more emerging technologies that would bring process efficiency and also increase the uptake of the products offered.
Keeping the micro-merchant market segment in mind, this report answers the questions of how and why microfinance institutions should make a switch to digital technologies to meet their customers’ needs better.
15 Sep, 2019
Is a good initiative. Digitilation is the need of the time. Those who take steps towards this now will be much ahead of others.
08 Sep, 2019
This is an important study as it provides the specifics on the status of technological development in MFIs in Bangladesh that is certain to shine light on MFI sectors in other countries. At the sane time, it promotes further use of technology to increase efficiency and effective service delivery in the MFI sector while also providing the complementary policy changes need to keep up with the technological ones in the sector. Thanks for this exemplary work, MSC!
07 Sep, 2019
It is true technology can do a lot more for MFIs not only in Bangaladesh but also in all developing countries. Fintech like Bank Genie can pay attention to this sector.
07 Sep, 2019
It is true technology can do a lot more for MFIs not only in Bangaladesh but also in all developing countries. Fintech like Bank Genie can pay attention to this sector.
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