The Rise of Digital Microfinance: A Comparative Study of Mobile Lending Platforms in Nigeria and Bangladesh

Abstract

Background: The proliferation of digital technologies has transformed traditional microfinance. Mobile-based microcredit platforms now reach previously unbanked populations in developing nations. However, their long-term financial and social impact remains under-examined.
Objective: This study investigates the evolution, adoption, and socioeconomic outcomes of digital microfinance platforms in Nigeria and Bangladesh, assessing how they influence financial inclusion and borrower behavior.
Methodology: Using a comparative case study approach, primary data were collected via surveys (n=400) and interviews (n=30) with borrowers and digital lending officials from both countries. Quantitative data were analyzed using regression models, while thematic coding was applied for qualitative insights.
Findings: Digital microfinance increased access to credit for women and rural populations by 45% in both countries. Borrowers reported improvements in small business growth, household resilience, and digital literacy. However, challenges included high interest rates, poor data privacy, and lack of financial education.
Conclusion: Digital microfinance is a powerful tool for economic inclusion but must be supported by regulatory oversight, ethical lending practices, and borrower education to prevent digital debt traps.