Degree
Master of Science in Management
Faculty / School
School of Business Studies (SBS)
Department
Department of Management
Date of Submission
Fall 2024-11-12
Supervisor
Dr. Ashar Saleem, Assistant Professor and Director Graduate Programs SBS
Committee Member 1
Dr. Amer Iqbal Awan, Examiner, Department of Management
Committee Member 2
Dr. Yasir Mansoor Kundi, Examiner, Department of Management
Project Type
MS Management Research Project
Access Type
Restricted Access
Keywords
Microfinance Institutions, Fintech, Islamic Microfinance, Financial Inclusion
Abstract
This study explores the role of technology adoption in the microfinance sector, focusing on two different business models: Technology Based Microfinance Bank (TMFI) which is a profit-driven telecom-led bank, and the other one is IMFI which a non-profit Islamic microfinance institution. The study investigates how these organizations leverage digital technologies to achieve financial inclusion in Pakistan. TMFI's technology-driven approach emphasizes operational efficiency, scalability, and profitability through mobile banking, data analytics, and digital verification systems. On the other hand, IMFI emphasizes personal relationships and community engagement with little technology usage to provide interest-free loans by following Islamic finance principles. The study highlights the advantages and challenges of both business models. TMFI benefits from rapid growth and efficiency using its business model. It faces risks of fraud and digital illiteracy among its customers. IMFI’s traditional approach fosters deeper relationships among its customers but limits the scalability of the business. This study examines how both organizations balance technology adoption with their core missions through in-depth interviews and thematic analysis. It provides insights for policymakers and microfinance practitioners on leveraging digitalization for sustainable financial inclusion.
Recommended Citation
Aziz, T. (2024). Traversing The Digital Divide: How Two Microfinance Organizations Leverage Technology For Financial Inclusion (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mgt/31
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