By Sam Mendelson, Lucia Spaggiari, Chiara Pescatori, Gabriela Erice, Gemma Cavaliere and Daniel Rozas; published by the European Microfinance Platform (e-MFP); May 2019; 44 pages; available at http://www.e-mfp.eu/resources/european-dialogue-financial-inclusion-through-technology
This report presents the work of the top ten competitors for the 2018 European Microfinance Award, with the goal of illustrating ways financial service providers (FSPs) can leverage technology to improve their services for low-income and other financially excluded clients. (The award is presented annually by the European Microfinance Platform (e-MFP), the Luxembourg Ministry of Foreign and European Affairs, and Inclusive Finance Network Luxembourg.) The authors identify three ways in which technology is transforming the microfinance sector: 1) “offering digital financial services” that provide clients with improved convenience and security; 2) “increasing institutional efficiency and improving the client experience” through implementation of back office or client-facing solutions that reduce costs and increase transaction speeds; and 3) “responding to specific challenges” that are faced by organizations, such as lack of basic infrastructure to support affordable channels of communication by providing technology enabled alternatives.
From the varied nature of competitors’ solutions, the report extracts the following shared “factors for success:” 1) the ability to innovate via partnerships; 2) recognising the needs of clients and tailoring technology to meet those needs; 3) implementing practices that protect clients from pitfalls such as effective client complaint processes to ensure clients’ grievances are addressed in a timely and appropriate manner; 4) understanding the integral role that financial education plays in the success of technological innovation; and 5) planning for long-term success with an iterative implementation process that allows for mid-course corrections.
By Jolene Khor, Research Associate
Sources and Additional Resources
European Microfinance Platform (e-MFP) report: “Financial Inclusion Through Technology: Digital Pathways in Financial Inclusion”
http://www.e-mfp.eu/resources/european-dialogue-financial-inclusion-through-technology
European Microfinance Platform (e-MFP) homepage
http://www.e-mfp.eu
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROFINANCE EVENT: Financial Inclusion That Works for Women; March 2, 2023; London, UK
- SPECIAL REPORT: Yikri of Burkina Faso Wins $110k European Microfinance Award for Progress Toward Food Security #EMW2023
- MICROFINANCE EVENT: European Microfinance Week; November 15-17, 2023; Luxembourg
- SPECIAL REPORT: European Microfinance Week 2023 Opens With Action Group Meetings, Including Investors Sharing Strategies for Measuring Social Performance #EMW2023
- MICROFINANCE PAPER WRAP-UP: “Financial Inclusion That Works for Women,” by Sam Mendelson, Published by e-MFP
