In this excellent article from James Militzer (author of the Next Billion Financial Innovation blog), Graham Wright explains that one way in which MFIs can improve efficiency is simply to “ride the rails,” using the payments systems that a fintech or mobile money system provide in order to make loan disbursements or repayments. “You’ve got a very large range of MFIs doing that, a lot of them using the Musoni System that allows them to have the back-end integrated with those payments systems.”
Thanks James and Graham for the shout out – we recommend reading the full article here.