Digital-Based Collection Systems in Microfinance: A Bibliographic Analysis (2014–2024)

Abstract

The adoption of digital-based collection systems in microfinance has significantly reshaped the operational landscape of financial institutions, enabled improved payment processes and enhanced financial inclusion. This bibliographic analysis examines literature from 2014 to 2024, exploring the evolution of digital payment systems in microfinance. Key references, such as Suhrab et al. (2024), who discuss the role of digital financial inclusion in addressing inequality, and Shalini and Sabitha (2024), who evaluate digital payment innovations, provide insights into emerging trends and technological advancements. The study also highlights the role of FinTech (Sultan et al., 2023) and sustainable finance (Bihorac et al., 2024) in transforming microfinance operations.

Findings indicate that digital transformation, particularly through mobile payment systems and FinTech platforms, has driven significant efficiency and cost benefits. Despite these advancements, challenges such as technological infrastructure gaps, digital literacy issues, and user trust continue to hinder widespread adoption. The analysis also identifies a lack of localized research focusing on urban microfinance ecosystems, such as those in Mumbai, where unique socio-economic factors influence adoption.

This study provides a comprehensive overview of key innovations, implementation challenges, and research gaps in digital microfinance systems. It underscores the importance of sustainable and context-specific approaches to promote financial inclusion. By synthesizing insights from a decade of research, this paper serves as a foundational reference for academics and practitioners aiming to understand and advance the intersection of digital technologies and microfinance practices.