Integration of Digital Technologies in the Indian Microfinance Sector

Authors

  • Alpa Ghosh  Assistant Professor, The Bhopal School of Social Sciences, Bhopal, Madhya Pradesh, India

Keywords:

Abstract

The micro finance industry has a long and eventful history. It is evolved out of efforts to overcome poverty through capacity-building and women empowerment. Micro finance is now a major component of banking systems in the developing and under developing world. Microfinance institutions made their mark by using innovative approaches. These institutions gave small loans without collateral, to clients from low-income groups predominantly engaged in income-generating activities in the informal economy (Jayadev, 2016). For long time, it was believed that the free market could not provide financial services to the poor, effectively and efficiently. However, pioneers of microfinance such as those behind Bangladesh’s Grameen Bank demonstrated that it was possible to have a ‘social business’ (Cull, et al. 2009). These organizations were able to provide financial services, most importantly credit, to the poor in a profitable manner that too on a large scale. The formal banking system repeatedly failed on these points because of imperfect information about the borrower's creditworthiness, high transaction costs and lack of collateral.

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International Journal of Scientific Research in Science and Technology

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Published

2021-04-20

Issue

Volume 9, Issue 3, March-April-2021

Section

Research Articles

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[1]
Alpa Ghosh "Integration of Digital Technologies in the Indian Microfinance Sector" International Journal of Scientific Research in Science and Technology(IJSRST), Online ISSN : 2395-602X, Print ISSN : 2395-6011,Volume 9, Issue 3, pp.59-72, March-April-2021.