Tracing the digital transformation of microfinance: a study of Bangladesh and India

This is the authors' abstract. We don't add key points for this paper.

Digitalization has become a defining force in the modern world, transforming industries, economies, and everyday life. It refers to the adoption of technologies to improve business processes, enhance communication, and deliver innovative services. From e-commerce to on-line banking, especially in the microfinance sector, adoption of digital technologies is a boon. Microfinance offers financial services to low-income masses or those who have limited banking accessibility. The concept of microfinance was pioneered initially by Prof (Dr) Muhammed Yunus in the 1970s in Bangladesh. The seed of microfinance was sowed in the land of Bangladesh, which grew into a giant tree that spreads its branches in India, further spreading its existence in countries like Ethiopia, Kenya, Zimbabwe, Indonesia, Cambodia, Ghana, Sri Lanka, and many more. Throughout the years, microfinance has served as a backbone for the rural masses by alleviating poverty, encouraging entrepreneurship, and enhancing empowerment. With this view in mind, the present study portrays an overall view of the evolution of microfinance over the years in both countries, i.e. Bangladesh and India. The study is qualitative in nature which is based on secondary data that has been gathered from various journals, articles, annual reports, websites, newspapers, and magazines. Based on a thorough content analysis, the necessary inferences of this study are drawn. The study concluded that over the years, the journey of microfinance has been a success for both the countries. And microfinance has spread its wings from traditional platform to digital platforms.