With the thematic-analysis, the authors critically summarize the technological evolution within Microfinance Institutions (MFIs). They examine how digital technologies have transformed core operations while also identifying persistent gaps.
To provide a periodized review of historical developments, the authors critically address the existing gaps to realize the potential of technology for more equitable financial inclusion.
Thematic systematic literature review
The analysis reveals the existence of distinct phases leading to the development of the “death for distance” theorized by Frances Cairncross: pre-digital manual systems (1990s-early 2000s); computerization of core banking (mid-2000s-2010s); the mobile revolution (2010s-2020s); and the frontier era (2020-2025), which explores
The authors highlight inclusive infrastructure, ethical governance and adaptive regulation as fundamental elements to enable a full digital transformation of MFIs Cobb’s paradox features the challenges that remain despite progress, such as, digital divide that excludes rural populations and women, regulatory patches
Transformation of MFI will help to understand the managers about the past phases with future opportunities