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Digitalizing Microfinance in Europe

Publication Papers

The paper summarises the results of the survey on the use of fintech solutions and digitalisation of the customer relations and lending processes among MFIs in Europe. While there is a widespread recognition about the need to use digital solution to a larger degree, the ability and willingness of MFIs to do that varies greatly. Small institutions claim lack of financial resources as the main challenge in bringing technology to their organisations. The most useful digital services are those related to the automation of loan application and management of the related documentation. Small scale of operations of most MFIs in Europe is a barrier to the introduction of fintech solutions. The results also show that MFIs are cautious about not losing their competitive advantage of personal relationship with their clients. Fintech and digitalisation solutions should be applied based on a rational calculus of costs and benefits, in line with the mission of the organisation and the needs and capabilities of the clients.

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