The 9 principles of digital development
Having discussed why the microfinance sector is moving towards digital,(in part 1) it is good to be reminded of the guiding principles of digital development / transformation that practitioners should follow. This is important for two reasons. First, within an organisation, it is vital everyone is on the same page in terms of the vision the organization is heading towards. Secondly, so that best practice is followed.
To address the first of these reasons, if you ask colleagues what they thought is meant by “digital transformation” it’s likely you would receive 101 replies.
This variance is perfectly understandable. We all come from different backgrounds, have different professional experiences and have different priorities. However, difference is not what is needed when discussing organisational transformation, rather, there needs to be singular clarity in the vision and which the whole organisation can work towards.
“Sometimes MFIs can launch ad hoc projects without first having a coherent digital strategy. MFIs need to create a coherent vision that integrates all fintech initiatives and consider how to provide adequate operational, technical, legal, and staffing support.” Michael Schlein, President and CEO, Accion
I would suggest having a workshop to ensure alignment of executive management in the vision and process of digital transformation, and which can lay the groundwork and appropriate project / transformation management structures to support the process of change management.
The workshop would ideally be facilitated by a non-employee of the MFI as they can be more objective and don’t have to consider the day-to-day operations. However, they should be always appropriate and address the realities that MFI faces.
By having leadership which takes on the challenge of transformation head on, it can also start to build agility and a culture that is proactive rather than reactive to a constantly changing market.
It is good to have a working environment that keeps evolving rather than thinks, that work done today is good for everyone tomorrow. A culture of innovation and a willingness to learn from failure, will put an organization in a better frame to grow and respond as new trends evolve.
And this brings me onto the second point, following digital principles and best practice.
“The Digital Principles were created in a community-driven effort, the result of many lessons learned through the use of technology in development projects. They are part of an ongoing effort among development practitioners to share knowledge and support continuous learning.” https://digitalprinciples.org/
The importance for MFIs of having a singular vision and following best practice is well summed up by Graham Wright, Founder and MD, MicroSave
“Very soon, if MFIs don’t develop a strategy and implement fintech behind that strategy, I think they will simply become irrelevant and slowly but surely shrink and die.”
Now that the reasons for digital transformation have been explored in part 1, and the start of the “how” (to get started) in this post, next I will examine why it is important to understand the national context as what might be right in Country A may not be appropriate in Country B.
