Contesting digital finance for the poor

Abstract

Purpose

This paper aims to critically assess digital finance as a pro-poor intervention in the development finance space.

Design/methodology/approach

Using critical policy discourse analysis, this paper explains the turn from microfinance to digital finance, and thereafter discusses four issues: the lack of evidence that digital finance for poor people actually promotes socioeconomic development; the risks that poor people are exposed to, which arises from their exposure to digital finance technology; the lack of evidence that digital finance actually brings poor people immediate benefits; and the weak business rationale for digital finance.

Findings

The expectation for digital finance serving as a major pro-poor private sector intervention lacks justification.

Originality/value

The paper reflects on the effect of digital finance for poor people.

Citation

Ozili, P.K. (2020), "Contesting digital finance for the poor", Digital Policy, Regulation and Governance, Vol. 22 No. 2, pp. 135-151. https://doi.org/10.1108/DPRG-12-2019-0104