Microfinance industry, which serves the unbanked, is likely to head towards the path of consolidation post-COVID 19, feel industry experts.
Micro lenders will also move towards digitisation of all processes for serving their customers who are going to see a change in their transaction habits, they said. “A lot of people who are not here for the long-term or don't have a very long-term vision of being in this industry and serving these (MFI) customers, will most likely find their way out.
I would think that it also opens up some kind of path to consolidation in the industry," Ujjivan Small Finance Bank managing director and CEO Nitin Chugh said during a panel discussion on the microfinance sector organised by CRIF High Mark, a credit bureau..