The Learning Lab – an initiative of The MasterCard Foundation, jointly implemented by GDI and Dalberg – is researching the Business case for digitally-enabled smallholder finance, specifically: what role do digital tools play in successful business models for lending to smallholders? This blog highlights a few takeaways from the study to date. There is also a presentation from a Sep. 2016 workshop where Dalberg and the Lab discussed the results with MasterCard Foundation partners and selected financial and digital service providers.
The Business case for digitally-enabled smallholder finance is concerned with how digitalization can enable financial service providers (FSPs, broadly defined) to more profitably and sustainably serve small holder farmers. The goals of the research to date have been:
- Build an initial knowledge base of the current and projected use of digital tools by FSPs serving smallholders
- Begin to explore the impact of digitalization on the financial performance of FSPs
- Identify key constraints to digitalization and areas of opportunity to accelerate digital integration
- Identify requirements for building out a more robust business case for digitalization over the coming years