The Future of Microfinance Industry: Borrowers Facing Challenges Brought by the Technological Advancement

This study examined the challenges encountered by microfinance borrowers as a result of technical advancements. Furthermore, their perspectives on the imminent future state of MFIs were also examined. The results indicated that the majority of borrowers are utilizing printed application forms to apply for loans from MFIs, which are then sent to the MFI offices. The primary issue faced by most borrowers is a lack of proficiency in digital literacy. The majority of individuals lack proficiency in navigating the websites and mobile applications of MFIs. This suggests that vulnerable populations, such as individuals residing in distant regions or those lacking internet access, face a potential danger of being excluded as a result of their limited digital literacy. The data indicate that borrowers anticipate a complete transition to online operations in microfinance institutions within a timeframe of less than five years. Borrowers anticipate that loan applications will be completed via the web pages or mobile applications of MFIs. Loans can be discharged and reimbursed via internet banking or alternative digital platforms like Gcash and Maya.