Measuring the Effects of Digital Transformation on Organisational Performance: A Case Study of Microfinance Institutions

Digital transformation is the adoption of digital technologies to improve an organisation's processes, services and products. In microfinance institutions (MFIs), this can result in improved operational efficiency, risk management, revenues and customer experience (Redaelli et al., 2021). Automating administrative processes, reducing costs and loan processing times and improving cash management are all ways of optimising operational efficiency. In addition, the use of technologies such as artificial intelligence (AI), machine learning and blockchain can help improve credit decision-making and risk management (Tufail et al., 2021). Such technologies make it feasible to assess the creditworthiness of borrowers, track repayments and reduce losses from defaults. In addition, participatory finance platforms and online payment systems can diversify funding and reduce dependence on traditional bank lending (Sanaa Rizkallah, 2021). The purpose of this study is to investigate the contribution of digital transformation to the organisational performance of MFIs. To this aim, the study will examine the existing literature in order to establish a theoretical basis based on concrete cases of MFIs that have adopted digital transformation to improve their organisational performance. Finally, it will highlight the success factors and barriers encountered during the implementation of these successful initiatives.