The Microcredit
Regulatory Authority (MRA) and International Finance Corporation (IFC)
organized a seminar this week aimed at sharing insights from their recent Microfinance
Sector Development Diagnostic study.
Conducted by
FinValue Advisors under the auspices of MRA and IFC, the study delves into two
critical components: Digital Transformation and Housing Microfinance (HMF).
These
components assess the current landscape of digital initiatives and housing
microfinance endeavors within the sector, said an IFC press release on Monday.
Moreover,
the study illuminates the industry's appetite for change, a crucial aspect in
propelling sectoral development and modernization.
Over 25 microfinance
institutions (MFI) spanning diverse categories, participated in the diagnostic
process alongside key government stakeholders and private sector institutions.
The collaborative effort focused on pinpointing institutional readiness,
evaluating existing regulatory frameworks, gauging market infrastructure
viability, assessing consumer readiness, and estimating the requisite financial
investments for digital transformation and housing microfinance initiatives.
This seminar
marks a significant stride towards fostering collaboration and knowledge
exchange within the microfinance landscape, ultimately paving the way for a
more inclusive and digitally empowered financial ecosystem.
Martin
Holtmann, IFC’s Country Manager for Bangladesh, Bhutan, and Nepal said "Microfinance
has been an important part of the development journey of Bangladesh. As our
economy transitions from Least Developed Country (LDC) status to the next
level, the Microfinance industry can continue to play a crucial role. This is
right time for all stakeholders to discuss the key reforms and capacity
building that need to be implemented to transition and support the country’s
growing economy. IFC is here to support modernization of the sector, enable MRA
and MFIs to build their own capabilities, introduce modern governance and solid
risk management practices, and leverage technology.”
The roadmap
laid out by the study is a guide for stakeholders to create a strong housing
microfinance portfolio, giving members the chance to build secure futures by
owning homes. To make digital transformation and housing microfinance work on a
larger scale, a supportive environment across regulations, infrastructure, and
institutions is needed. This roadmap brings together the IFC, MRA, MFIs, and
others to take meaningful steps that truly benefit microfinance consumers.