MFIs managing risk by turning to tech innovation to ensure loan repayment | Business Standard News
MFIs managing risk by turning to tech innovation to ensure loan repayment
The technological interventions were necessitated by the increasing cases of defaults in the microfinance segment
Namrata Acharya |
Last Updated at December 11, 2019 23:38 IST
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One of the biggest worries of microfinance institutions (MFIs) is “risk management”, or managing the risks involved in disbursing loans to customers whose credit history and repayment capabilities may not be known. However, the next generation of MFIs in India are turning to technological innovation to solve this problem.
Take Svatantra Microfin, promoted by Ananya Birla. The Mumbai- based MFI not only does all its disbursements digitally, it is also using technology to identify the location of clients, and in loan origination, collection and risk management. The …
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