Interswitch, an integrated payments and digital commerce company, has called for full digitalisation of the microfinance ecosystem, so as to overcome the challenges and unlock growth opportunities in the sector.

Head Sales, South-South, Interswitch. Mr Emmanuel Nwokocha, made the call at Asaba, Delta State during the Interswitch technconnect 4.0 programme with theme ‘Unlocking Growth Opportunities Through Technology and Innovation’.

The event had stakeholders in the financial technology space, policymakers, technology enthusiasts and others in attendance.

Nwokocha, in a keynote address titled ‘The Future of Microfinance – Digitalization, Challenges, and Growth Opportunities’, noted that microfinance had undergone a significant transformation over the years.

He said: “What began as a simple mechanism to offer small loans and savings options to the unbanked has evolved into a complex ecosystem that now provides a wide range of financial services—spanning insurance, credit, payments, and beyond.

“Yet, despite these advances, challenges persist. The sector continues to face high operational costs, limited scalability, and inefficiencies in customer acquisition. These barriers impede our collective ambition to extend financial services to underserved communities and to drive prosperity from the grassroots up.

“This is where digitalisation comes into play. By harnessing digital platforms, we can drastically reduce the cost-of-service delivery, improve customer engagement, and provide more tailored financial products. Through digital innovation, we can create a more inclusive financial ecosystem that is accessible, affordable, and effective.

“At Interswitch, we strongly believe in a digital-first approach. Solutions such as mobile banking, digital wallets, AI-driven credit scoring, and cloud-based platforms are very essential for ensuring microfinance remains relevant and resilient in an increasingly digital world.”

Saying that the future of microfinance was one where digital technology is seamlessly integrated into every aspect of service delivery, he noted that realising the full potential of digitalised microfinance required collaboration.

He said: “Financial institutions, fintech companies, regulators, and telecom providers must come together. Innovation is rarely the work of a single entity; it thrives on collective effort. We must build partnerships that foster trust, create synergies, and ultimately contribute to the sustainable growth of the microfinance sector.

“Events like Interswitch’s TechConnect series are very important in providing a platform for stakeholders to connect, share insights, and collaborate for impact. Microfinance institutions will operate with the efficiency of digital banks, powered by robust data analytics and cloud computing.

“This is not a distant dream; it is a future we can build together, starting right here, today. As we embark on this exciting journey of digital transformation, I encourage all of us to remain focused on our shared goal, which is empowering communities, driving economic growth, and enhancing the quality of life for millions of Nigerians.”

Also speaking, the Divisional Head, Digital Marketing, Interswitch, Mr. Fabio Abiola emphasized the cost effectiveness of digital marketing, stressing the need for participants to start their digital journey to unlock their business growth.

On his part, Managing Director, Schoolville Limited, Mr. Charles Omordia, who spoke on the ‘Role of Collaboration between Government and Fintechs in Digitalizing Microfinance as Business’,
emphasized the importance of digital skills in the technology space.

A major highlight of the even was the panel session, titled, ‘Building Financial Resilience: The Intersection of Microfinance, Fintech, Fostering Business’.

The event also provided a valuable networking platform, allowing participants to exchange ideas, explore partnerships, and experience the latest technological advancements aimed at enhancing the operations of microfinance institutions.