Emerging Fintech for MFIs: A Guide for the Latin American Microfinance Market

Abstract

This thesis focuses on the viability of financial technology implementation in microfinance programming in Latin America based on the perception of microfinance service providers. This paper highlights the practice of offering microfinance loans to low-income entrepreneurs coupled with financial education stipulations. After introducing emerging financial technology as an educational tool, the paper reviews relevant characteristics of the regional development field, the role of culture in tech adoption, and current technology trends in Latin America. Using the microeconomics of technology adoption, this paper synthesizes an implementation framework for microfinance lenders based on strategic goals and best practices. Data is collected using semi-structured interviews to assess the perceived barriers to adoption. The final part of the thesis uses a qualitative research analysis to characterize the perceptions of service providers and programming decision-makers in Latin America on the topic of financial technology adoption. The analysis finds that microfinance service providers in Latin America feel positive about financial technology tools but perceive them as costly and beyond the use capacity of their clients. With caution aimed at client-focused development of programming, financial technology...