Research Directions on the Role and Impact of ICT in Microfinance

Abstract

Information and communication technology (ICT) is an important driver in the microfinance industry. Microfinance providers, both non-profit microfinance institutions (MFIs) and for-profit banks, provide financial services to the poor, and are critical for economic development in developing nations. As the industry matures, MFIs face a competitive environment, forcing them to balance the goals of outreach and sustainability. ICT may be the instigator of this new environment and the potential solution to MFI survivability. We propose research directions on the role and impact of ICT in the microfinance industry, using a microfinance technology and stakeholder ecosystem framework. This research is at the intersection of inquiry on ICT for development and the digital divide, the impact of microfinance, and the use of ICT in the financial services industry. We discuss the role and impact of ICT at the customer, the microfinance institution, donor, and industry levels.