The digital journey of Shakti Foundation for Disadvantaged Women (SME loans): A lesson for progressive MFIs in Bangladesh

The case study charts how Shakti Foundation for Disadvantaged Women utilized technology to grow its SME portfolio and enhance cost and time efficiency. Through the use of technology, it offered customer-friendly services and helped staff members manage their loan portfolios better while managing associated risks.

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.

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Written by


Ravi Kant

Senior Manager

Shobhit Mishra

Senior Analyst