Digital Survey: The Hidden Pitfalls of the Rush to Digitalise

Since the inception of microcredit in the 1970s, its business model has seen a number of shifts: in the nineties, the concept of microcredit evolved into a more commercially sustainable microfinance, which included savings. Early 21st century, the financial inclusion paradigm led to further commercialization and a wider understanding of the industry, which now included commercial banks serving low-income clients. Today, we stand witness to a third revolution: digitalization; urging financial institutions to digitize to stay competitive. 

This research set out to understand how far financial institutions have come and how far they are willing to go through a comprehensive screening of its financial institutions portfolio in Africa, Asia and Latin America. With the help of PhB Development, BIO collected information on the strategic priorities and challenges of financial institutions and on the level of digitalization. The survey covered the digital products and services offered by each institution, the level of digitalisztion of internal processes and the technological readiness for digital innovation. It also included digital partnerships (such as with mobile network operators, agent networks, fintechs and others) and it covered the clients’ attitude towards digital products and services and their uptake.