By following the path of digital transformation in its SME program, an MFI in Bangladesh registered an eightfold increase in the number of SME accounts and a 12-time increase in the loan disbursement amount. That too, in a span of just two years (July ’19 – June’ 21). This growth is despite the slowdown during the COVID-19 lockdown in the country.
The exponential growth in the number of SME loan accounts and disbursement amounts was due to the inherent benefits of the digital interventions implemented by the MFI. These benefits include a better ability to make timely decisions, reduced turnaround time to process the loan applications, strengthened internal control and reduced fraud among many more.