Purpose This paper aims to critically assess digital finance as a pro-poor intervention in the development finance space. Design/methodology/approach Using critical policy discourse analysis, this paper explains the turn from microfinance to digital finance, and thereafter discusses four issues: the lack of evidence that digital finance for poor people actually promotes socioeconomic development; the risks that poor people are exposed to, which arises from their exposure to digital finance technology; the lack of evidence that digital finance actually brings poor people immediate benefits; and the weak business rationale for digital finance. Findings The expectation for digital finance serving as a major pro-poor private sector intervention lacks justification. Originality/value The paper reflects on the effect of digital finance for poor people.
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Peterson K Ozili (2020) studied this question.
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