The Microfinance Review

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Bridging the Digital Divide in the Microfinance Sector


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1 Deputy General Manager and Faculty Member BIRD, Lucknow, Uttar Pradesh, India
     

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The microfinance sector is characterised by small loans, low- income clientele, innovative practices and a high touch business model. However, black swan events like the COVID– 19 pandemic had led to the deterioration in portfolio quality, inability to service clients and put up with income losses of clients due to frequent lockdowns and the disruptions in operations. This article explores how the sector can leverage technology to ensure business continuity in such extenuating circumstances, service clients without losing their unique selling proposition of a client-centric approach and how the Fintechs are providing innovative products to differentiated clients.

Keywords

Microfinance, Non-profit Organisations
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  • Economic Times (2021): “India has FinTech adoption rate of 87%, against global average of 64%”, Economic Times, 30 September. Retrieved from https://bfsi.economictimes.indiatimes.com/news/fintech/india

  • Economic Times (2021a): “Nearly 30% of Indian Population Don’t Have Any Health Insurance: Survey”, Economic Times, 29 October. Retrieved from https:// economictimes.indiatimes.com/industry/banking/finance/insure/nearly-30-ofindianpopulation-dont-have-any-health-insurance/

  • India Brand Equity Foundation (2021): Insurance Industry Report, IBEF, New Delhi. Retrieved from https://www.ibef.org/industry/insurance-sector-india.

  • Livemint (2021): “Google working on offering FDs to Indians through Google Pay”, Mint, 25 August 2021. Retrieved from https://www.livemint.com

  • Pradhan Mantri Jan Dhan Yojana, Department of Financial Services, Ministry of Finance, Government of India, New Delhi. Retrieved from https://pmjdy.gov.in

  • Reserve Bank of India (2021): Trends and Progress of Banking in India, RBI, Mumbai.

  • Sa-Dhan (2021): The Bharat Micro Finance Report 2021, Sa-Dhan, New Delhi.


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  • Bridging the Digital Divide in the Microfinance Sector

Abstract Views: 280  |  PDF Views: 0

Authors

Deepmala Ghosh
Deputy General Manager and Faculty Member BIRD, Lucknow, Uttar Pradesh, India

Abstract


The microfinance sector is characterised by small loans, low- income clientele, innovative practices and a high touch business model. However, black swan events like the COVID– 19 pandemic had led to the deterioration in portfolio quality, inability to service clients and put up with income losses of clients due to frequent lockdowns and the disruptions in operations. This article explores how the sector can leverage technology to ensure business continuity in such extenuating circumstances, service clients without losing their unique selling proposition of a client-centric approach and how the Fintechs are providing innovative products to differentiated clients.

Keywords


Microfinance, Non-profit Organisations

References