A Study of Digital Transformation in the Microfinance Landscape of Bangladesh
Alam, Md Shahin; Alam, Md Shahin (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024060219851
https://urn.fi/URN:NBN:fi:amk-2024060219851
Tiivistelmä
This research aimed at digital transformation in the microfinance institutions of Bangladesh. Microfinance in Bangladesh is a dominant tool for financial inclusion. In 1983 Grameen Bank introduced microfinance in Bangladesh, to the progress of vibrant microfinance. Over the years, in Bangladesh microfinance has transformed digitally with competition worldwide and extensive mobile phones, tablets, and agent banking. The research focuses on Technological adoption assessment, Thoughtful risk management, Findings customer perspectives, and Challenges and opportunities analysis of digital transformation in microfinance institutions in Bangladesh. This digital transformation has enabled loan disbursement, realization process, development of credit scoring, financial reports, and introduced online platforms to employees and clients. On the other hand, digital transformation advancement, challenges, and continued data security underscore this effort and utilize the benefit of digital transformation at microfinance in Bangladesh ensuring sustainable development.
Survey findings imply mixed opinions from respondents about the digital transformation of MFIs. Cybersecurity threats, data privacy, and technical issues are the most important concerns. Respondents are suggested to the staff training, develop a security system and regular risk assessment for risk mitigation strategies. Increased accessibility through mobile banking, faster loan processing, and digital innovation can improve customer satisfaction. However, challenges address regulatory complications, internet access, and Data privacy concerns. Focus on infrastructure development, measures cybersecurity, and balanced regulatory attitude collaboration with regulators and technology providers is necessary for digital transformation in the microfinance sector.
This research concludes with opportunities for technological innovation, financial inclusion, customer satisfaction, and socio-economic development despite the challenges of digital transformation in microfinance sectors in Bangladesh.
Survey findings imply mixed opinions from respondents about the digital transformation of MFIs. Cybersecurity threats, data privacy, and technical issues are the most important concerns. Respondents are suggested to the staff training, develop a security system and regular risk assessment for risk mitigation strategies. Increased accessibility through mobile banking, faster loan processing, and digital innovation can improve customer satisfaction. However, challenges address regulatory complications, internet access, and Data privacy concerns. Focus on infrastructure development, measures cybersecurity, and balanced regulatory attitude collaboration with regulators and technology providers is necessary for digital transformation in the microfinance sector.
This research concludes with opportunities for technological innovation, financial inclusion, customer satisfaction, and socio-economic development despite the challenges of digital transformation in microfinance sectors in Bangladesh.