Revolutionizing Microfinance: The Impact of ICT the Kerala Fiber Optic Network Project on SHGs

This paper explores the transformative impact of Information and Communication Technology (ICT) on the operational efficiency, outreach, and financial inclusion of microfinance Self-Help Groups (SHGs), with a special focus on the Kerala Fibre Optic Network (KFON) project. By integrating advancements in computational intelligence and language technology, the study underscores how ICT can revolutionize SHG operations, aligning them with the global digitization trend in financial services. Our methodology combines a comprehensive literature review with a case study analysis of the KFON initiative, offering a model for leveraging ICT infrastructure to empower SHGs. It highlights the benefits of ICT adoption in reducing operational costs, enhancing service delivery, increasing financial inclusion, improving transparency and trust, and mitigating risks, while also addressing the challenges faced by SHGs in adopting ICT, such as high initial investment costs, digital literacy gaps, infrastructure limitations, data security concerns, and resistance to change. The results and conclusions from the review indicate that ICT adoption significantly reduces operational costs, enhances service delivery, improves transparency and trust, and mitigates risks, promising a future of socio-economic development and digital inclusivity. The paper showcases a model for leveraging ICT infrastructure to empower SHGs through the lens of the KFON initiative and offers insights into the strategic role of partnerships, the significance of emerging technologies like computational intelligence & language technology for accelerating ICT adoption, and provides policy recommendations to support ICT integration in the microfinance sector