5 Ways Microcredit Institutions can adapt to Digitization
As technology changes the face of microfinance, regulators need to fully comprehend this changing environment and be prepared with adequate supervision and oversight tools. Obvious point; technology costs money and requires technical expertise to deliver. The good news is that technology can help lower the cost of delivery.
But how do you do that?
In this read, I will take you through 5 various ways Microcredit or Microfinance Institutions can adapt to today’s digital world of banking.
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- Planning:
Every Institution has its own way of embracing technology. However, they may have a common challenge. To reduce risks and make your digital transformation journey efficient, it is important to have a plan as to how to make this new actionable step a success.
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Digiteum.com shares how to make digital transformation grow your business.
2. Invest in Flexible IT Solutions:
If you want to improve on your market share, you may want to consider this point.
In order for institutions to keep up with a fast-moving digital market, they must implement a flexible IT infrastructure that matches that movement.
Investing in new IT solutions may be expensive and training your employees on new tech demands time, energy and money, but it is worth the effort once this is achieved.
“Ultimately, you will be ahead of the competition with innovative new technologies. It has a positive impact on your productivity, workflow, and efficiency. A flexible infrastructure eases the progress of these technologies and ultimately saves you money.” — Oscar Gelderblom.
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3. Partnership with Digital Firms
Of course, selecting the right partnership is an essential step in the process of embracing the digital world today.
A digital firm partner helps Institutions to identify and find the best solutions, and properly implement them. After implementation, comes ensuring the solutions stay effective by maintaining systems, monitoring their effectiveness, and upgrading as needed.
In doing so, the right partner in digital transformation will have a significant collection of best practices to inform their decision-making and to help resolve any issues or questions that might arise in your firm. Credify, a platform that offers digital solutions to financial Institutions is doing so well in its quest to help build Africa’s Credit Infrastructure.
4. Focus on your Customers:
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Mobile is a large part of our lives and can also facilitate customer needs, and offer proactive services. The objective is to move closer to clients’ expectations and anticipate them. This requires a change in mindset and practices.
A customer-focused mindset places your customer’s experience as the most important part of your digital transformation. This helps you to build a better relationship with your clients.
5. Be Ready
Look, we’re talking about a fundamental shift in how your firm operates and delivers value to its customers. In this sense, it is very important to “be ready” for this new innovation. The journey also requires transforming the firm’s entire organizational culture.
The whole firm including your employees is expected to adapt to the new ways of working. This can be tricky because humans are notoriously resistant to change. To make this a success and stay ready, the reasons and benefits of transforming your firm’s system into a digital system must be made clear to your employees and even your clients.
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