Leading payment Organization, Interswich , has highlighted how digital platforms can be harnessed to reduce the cost-of-service delivery, improve customer engagement, and provide more tailored financial products for Microfinance institutions.
The highlight was made at a meeting organized by Interswich for stakeholders in Financial Technology ecosystem, policy makers and Tech enthusiasts.
The event held at Asaba, Delta State Capital with the Theme: “The Future of Microfinance – Digitalisation, Challenges, and Growth Opportunities”
In his keynote address, Interswich Head Sales , South South , Mr Emmanuel Nwokocha said the event was aimed at exploring how digitalization can serve as a catalyst for overcoming challenges and unlock growth opportunities in the microfinance sector.
Stating that Microfinance has evolved over the years , Mr Nwokocha listed operational costs, limited scalability, and inefficiencies in customer acquisition as barriers that have continued to impede on the collective ambition to extend financial services to underserved communities and to drive prosperity from the grassroots up.
He also mentioned Digital Literacy, Infrastructure Limitations, Privacy and Security and Regulatory Compliance as other challenges faced by the Microfinance sector.
However , the head Sales South of Interswich said the opportunities of Microfinance are; “Financial Inclusion at Scale: With digitalisation, we can reach millions who were previously unreachable and excluded from financial services. Mobile technology and USSD banking, for instance, have already enabled rural and semi-urban populations to access financial services without stepping into a physical bank.
“Efficiency and Cost Reduction: Digital platforms facilitate automation and efficiency. Technologies such as AI and machine learning streamline operations—from credit scoring to loan disbursement, significantly reducing overhead costs while improving accuracy and service delivery.
“Customer-Centric Products: Data analytics allow us to understand customer needs better. This enables the creation of customised financial products that meet the specific needs of different communities— be it micro-loans for farmers or savings schemes for small traders.”
Noting that the full potential of digitalised microfinance requires collaboration between Financial institutions, Fintech companies, regulators, and telecom providers he stated that innovation is rarely the work of a single entity.
He added that the Interswitch TechConnect programme is important as it provides a platform for stakeholders to connect, share insights, and collaborate for impact.
Nwokocha also Projected the future of microfinance as one where digital technology is seamlessly integrated into every aspect of service delivery.
Speaking on the role of collaboration between Government and Fintechs in Digitalizing Microfinance , the CEO of Schooville Limited, Mr Charles Omodiar, emphasized the need for Government to invest more on digital infrastructure and enhance policies for Digitalization to thrive so as to enable the general public to benefit.
