Digitization has been a source of hope and frustration in the microfinance industry. Hope, because it is seen as the means to making microfinance institutions (MFIs) competitive into the future. Frustration, because despite the significant resources invested, very few digitization initiatives have transformed the traditional MFI model and generated value for both customers and the business. MFIs play a vital role in the delivery of credit and other financial services to low-income customers, and in this session, we will discuss the future of microfinance and how to build value in microfinance through digitization.

To frame the discussion, we will briefly present key principles to successful MFI digitization recently piloted by CGAP in a community of practice, and that demonstrated how MFIs can leverage technology to grow their business, deliver value to customers, and embark on the digital future. The session will feature diverse experiences and perspectives on MFI digitization and how to create value with digitization, with the aim to initiate open discussion about the topic.