Digital and microfinance sector in the face of the health crisis

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The Grameen Crédit Agricole Foundation deploy an ad hoc observatory to monitor the effects of the health crisis in relation to 80 microfinance institutions (MFIs) and social business partners in some forty emerging countries enables them to collect information regularly so as to share it and draw the best lessons from it.

They have monitored more specifically how microfinance institutions used their digital channels to overcome their difficulty of direct contact with borrowers which traditionally takes place either in the MFI branch or in group meetings or even during the disbursement of funds (microfinance uses mostly cash when disbursing the borrowed sums) or the monitoring of the projects financed.

According to the survey conducted in the beginning of April, 68% of partner microfinance institutions indicated that they have made greater use of digital channels to overcome contact difficulties, as a result of lockdown or group gathering prohibition measures. This strong growth in use observed in the traditional finance sector can be seen also in the microfinance sector which has had no alternative but to adapt.

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