Digital Transformation of MFIs in Bangladesh

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In 2017/18 the United Nations Capital Development Fund (UNCDF) undertook the first comprehensive review of micro-merchants in Bangladesh engaged in the retail sector, particularly in Fast Moving Consumer Goods (FMCG) operating mostly in rural areas.

The Landscape Assessment of Retail Micro-Merchants in Bangladesh showed that retail micro-merchants require access to financial services, and credit in particular. Their need for financial services is high, and microfinance institutions are well-placed to meet the growing credit needs of micro-merchants. Micro-merchants predominately borrow roughly 68.1% of total loans from microfinance institutions. With the introduction of digital technologies, microfinance institutions have a new opportunity to further expand financial services to micro-merchants by embracing digital and mobile technologies in their operations.

Keeping the micro-merchant market segment in mind, this report answers the questions of how and why microfinance institutions should make a switch to digital technologies to better meet their customers’ needs.

Document Information

Document Type Report
Author Bhavana Srivastava, Ravi Kant, Ishita Tarun Sharma, Sivakumar Krishnan and Sonal Agrawal
Year of Publication 2019
Publisher United Nations Capital Development Fund (UNCDF)
Number of Pages 125 pages
Region / Country Asia / Bangladesh
Primary Language English (en)
Keywords Digital technologies
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