Journal of
Engineering and Technology Research

  • Abbreviation: J. Eng. Technol. Res.
  • Language: English
  • ISSN: 2006-9790
  • DOI: 10.5897/JETR
  • Start Year: 2009
  • Published Articles: 198

Full Length Research Paper

On the digital transformation of micro-finance institutions in the context of developing countries: A case from Democratic Republic of the Congo

Patrick Mukala
  • Patrick Mukala
  • Faculty of Engineering and Computer Science, University of Wollongong in Dubai, UAE.
  • Google Scholar
Jonathan Kabemba Ntumbwa
  • Jonathan Kabemba Ntumbwa
  • Faculty of Computer Science, Universit√© Nouveaux Horizons in Lubumbashi, DRC.
  • Google Scholar


  •  Received: 31 August 2023
  •  Accepted: 15 September 2023
  •  Published: 30 April 2024

Abstract

Blockchain can be used to improve microfinance management in several ways. This can help reduce the costs of microfinance by eliminating the need for intermediaries such as banks and credit bureaus and increase transparency in the microfinance sector by making all transactions visible to everyone. stakeholders. This can help reduce fraud and build trust. Blockchain technology can also be used to improve access to finance for people living in poverty by making it easier for them to obtain loans and other financial services and to increase financial inclusion by providing people living in poverty a safe and reliable way to obtain funds, store and manage their money. Indeed, the blockchain is a secure, transparent and immutable distributed ledger. This means that data stored on a blockchain cannot be modified or deleted and is accessible to all network participants. Blockchain technology has the potential to revolutionize a wide range of industries, including finance, supply chain management, healthcare and voting. This makes blockchain a valuable tool for microfinance institutions, as it can help improve the efficiency and accuracy of their data management processes. For example, blockchain can be used to track loan repayments, manage customer information, and prevent fraud. This study aims to demonstrate that blockchain has the potential to revolutionize the microfinance sector by improving the transparency and accountability of microfinance institutions, given that all transactions on a blockchain are public and cannot be modified. This means borrowers and lenders can be confident that their transactions are recorded accurately and that there is no risk of fraud. Overall, blockchain technology has the potential to significantly improve information management in microfinance institutions. This can lead to increased efficiency, accuracy, transparency and accountability in microcredit management.

Keywords: Microcredit, blockchain, security, transparency, decentralization, credit.