Interswitch, an integrated payments and digital commerce company, has urged for the complete digitalization of the microfinance ecosystem to overcome existing challenges and unlock growth opportunities within the sector.
Mr. Emmanuel Nwokocha, Head of Sales for South-South at Interswitch, made this call at the Interswitch Technconnect 4.0 program held in Asaba, Delta State. The event, themed “Unlocking Growth Opportunities Through Technology and Innovation,” attracted stakeholders from the financial technology space, policymakers, and technology enthusiasts.
During his keynote address titled “The Future of Microfinance – Digitalization, Challenges, and Growth Opportunities,” Nwokocha highlighted the significant transformation microfinance has undergone over the years. He noted that what started as a simple mechanism for offering small loans and savings options to the unbanked has evolved into a complex ecosystem that now provides a variety of financial services, including insurance, credit, and payments.
Despite these advancements, Nwokocha pointed out that challenges such as high operational costs, limited scalability, and inefficiencies in customer acquisition still persist. He emphasized that these barriers hinder the goal of extending financial services to underserved communities and driving grassroots prosperity.
“Digitalization is crucial,” Nwokocha stated. “By harnessing digital platforms, we can drastically reduce the cost of service delivery, improve customer engagement, and provide more tailored financial products. Digital innovation can create a more inclusive financial ecosystem that is accessible, affordable, and effective.”
He affirmed Interswitch’s commitment to a digital-first approach, advocating for solutions such as mobile banking, digital wallets, AI-driven credit scoring, and cloud-based platforms to ensure the relevance and resilience of microfinance in a digital age.
Nwokocha also noted that realizing the full potential of digitalized microfinance necessitates collaboration among various stakeholders. “Financial institutions, fintech companies, regulators, and telecom providers must come together. Innovation is rarely the work of a single entity; it thrives on collective effort. We must build partnerships that foster trust, create synergies, and ultimately contribute to the sustainable growth of the microfinance sector.”
He concluded by highlighting the importance of events like Interswitch’s TechConnect series in providing a platform for stakeholders to connect, share insights, and collaborate for impact. He envisions a future where microfinance institutions operate with the efficiency of digital banks, powered by robust data analytics and cloud computing.