Thank you for the article and sharing valuable insights. I believe traditional microfinance needs human interaction when accessing needs of borrowers and building relationships. Using digital channels and big data help and facilitate offering credit and collection process. So why can't we combine both to maximize efficiencies? Using only digital will raise defaults, and lenders will need to adjust their decision making process accordingly. Only digital lending entails higher risk than microfinance. Financing consumer and nano lending, is not typically microfinance which is dedicated to micro projects generating income and economic growth for the poor. Fintech is a very useful tool in microfinance, but needs to keep an eye on the social impact.
Thank you for the article and sharing valuable insights. I believe traditional microfinance needs human interaction when accessing needs of borrowers and building relationships. Using digital channels and big data help and facilitate offering credit and collection process. So why can't we combine both to maximize efficiencies? Using only digital will raise defaults, and lenders will need to adjust their decision making process accordingly. Only digital lending entails higher risk than microfinance. Financing consumer and nano lending, is not typically microfinance which is dedicated to micro projects generating income and economic growth for the poor. Fintech is a very useful tool in microfinance, but needs to keep an eye on the social impact.