Bridging the Digital Divide in the Microfinance Sector

The microfinance sector is characterised by small loans, low- income clientele, innovative practices and a high touch business model. However, black swan events like the COVID– 19 pandemic had led to the deterioration in portfolio quality, inability to service clients and put up with income losses of clients due to frequent lockdowns and the disruptions in operations. This article explores how the sector can leverage technology to ensure business continuity in such extenuating circumstances, service clients without losing their unique selling proposition of a client-centric approach and how the Fintechs are providing innovative products to differentiated clients.