Paper

The State of Digital Microfinance in Bangladesh: A Digitization Snapshot 2019

Highlighting the benefits and opportunities in digitizing transactions

The Microfinance industry in Bangladesh is growing amidst renewed competition from the banking sector and new agent banking initiatives. As the industry tackles challenges of high cost of borrowings and expansion of business, digitization of transactions is gradually starting to take precedence, which would not only help microfinance institutions increase efficiency but potentially reduce interest rates and cost of borrowing for its underprivileged borrowers.

This study focuses on the current state of digitization and the unexplored opportunities in the microfinance industry. It looks at the opportunities of digitizing transactions, the benefits that can be gained through the process and the challenges that need to be addressed in order to successfully digitize transations.

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