Significance of Fintech for Microfinance Institutions (MFIS): Anatomical Linkages of Fintech with Value Chain of MFIS and its Implications

Abstract

Fintech businesses have the tendency to revolutionize the entire world. Especially, the tasks associated with banking needs, and therefore, there is a significant scope for Fintech in the banking industry. Although when the country’s major population is unbanked and most of the population is also financially excluded, then the scope of Fintech gets exaggerated for microfinance institutions (MFIs), and therefore, the significance of Fintech for MFIs is much higher than the commercial and Islamic banks. Hence, this chapter has been written purposively to illuminate the impact, role, significance and implications of Fintech for MFIs in Pakistan in order to boost the knowledge and understanding of diverse stakeholders. The specialty of this chapter is that it is written specifically with reference to Pakistan as there is least research work with respect to the application of Fintech in MFIs. Similarly, the chapter also contains the anatomy of the value chain activities of MFIs and their linkage with the role of Fintech applications in boosting the performance of MFIs. Last, but not the least, the chapter also has a detailed discussion on factors that are required to boost the usage of Fintech in the MFI sector. Therefore, this chapter is pervasive for academicians, researchers, entrepreneurs, intrapreneurs and students for grasping, understanding and applying recent knowledge towards the betterment of academic and pragmatic activities.

Citation

Sultan, M.F., Rafiq, A., Ahmad, R. and Asim, M. (2023), "Significance of Fintech for Microfinance Institutions (MFIS): Anatomical Linkages of Fintech with Value Chain of MFIS and its Implications", Leong, C.-M., Ali, M., Raza, S.A., Puah, C.-H. and Eksi, I.H. (Ed.) Financial Inclusion Across Asia: Bringing Opportunities for Businesses, Emerald Publishing Limited, Leeds, pp. 65-75. https://doi.org/10.1108/978-1-83753-304-620231005