Tag: Digital financial services

MSC conducted primary research in Kenya to understand the challenges of female traders in open-air and cross-border markets. The study identified limitations that prevent them from using digital financial services comprehensively. We sought to learn why these owners of micro and small enterprises shy from using credit, savings, insurance, and payments. Faith Njeri is one such woman. Our new blog discusses the financial challenges countless women like her struggle with as they work on their dream of financial independence.

In our podcast today, Nicholas Mungai, and Thomas Murayi, financial inclusion experts at MSC, give an in-depth analysis of how digital financial services can bridge the digital divide to make formal financial services available to women, particularly those in open-air markets and cross-border trades.

This report assesses agents’ challenges, growth opportunities, risks, and coping mechanisms post-COVID-19. It further provides insights for the digital financial service players to create sustainable strategies for agents, including network maintenance and expansion.

It is clear that digital transformation is a journey, not a destination – so incremental progress is to be expected. Equity Bank, one of the leading microfinance providers in Kenya, developed a well-articulated approach and took over a decade to digitalize its operations. It started with the equivalent of a digital readiness assessment, on which it based its digital transformation strategy in 2010. MSC worked alongside Equity Bank, providing consulting services, for much of its digital transformation journey.

MSC, alongside several partners has collated inspiring stories of grassroots leaders. These stories are testament to their grit and resilience and reveal a glimpse of women’s hardships at the last mile.

“We see the potential volume, but do we design profitable products for low-and moderate-income (LMI) people?” MSC faces this question repeatedly in discussions with our clients across Asia and Africa—including our partners in Bangladesh and Vietnam under the MetLife Foundation-funded i3 program. In the first blog, we raise the question on the key behavioral biases to keep in mind to create compelling, engaging, and profitable products for the low- and moderate-income segment. The second blog speaks of the similarities and differences in the LMI segment in Bangladesh and Vietnam. The blog also takes you through the lives and struggles of two personas—Morium from Bangladesh and Hoang from Vietnam.