Following is a summary of a paper by Imelde Adjaffon, Gera Voorrips, published by Triple Jump, April 2018, 5 pages, available at:
https://triplejump.eu/wp-content/uploads/2018/05/How-Microfinance-is-Navigating-the-Fintech-Revolution-in-Africa-1.pdf
In July 2017, Triple Jump surveyed 17 microfinance institutions (MFIs) in Africa with the goal of learning more about “how MFIs view Fintech [financial technology], its potential uses, the drivers, challenges and critical success factors.” The authors found that:
1. MFIs tend to see fintech as a favorable business opportunity rather than an emerging threat.
2. MFIs recognize the merits of deploying fintech solutions, particularly in terms of customer convenience, internal workflow efficiency and data collection to reduce credit risks.
3. Despite the enthusiasm for fintech services, including internet banking, person-to-person (p2p) lending and digital financial education, the adoption of these solutions among MFIs remains slow.
4. The main challenges for MFIs implementing fintech services are high entry costs, finding suitable fintech partners and integrating new information technology systems into existing infrastructure.
5. Successful partnerships with fintech firms require significant planning, including the allocation of financial and human capital to keep pace with changing technology trends.
By Nicholas Galimberti, Research Associate
Sources and Additional Resources
Triple Jump homepage
https://triplejump.eu
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