KUALA LUMPUR: The shift to digital platforms has played a crucial role in sustaining and expanding microfinance operations since the COVID-19 pandemic, according to Grameen Bank founder Prof Dr Muhammad Yunus.
Yunus, also the Chief Adviser to the Government of Bangladesh, explained that the move to digital was unplanned but necessary due to pandemic restrictions.
Traditional in-person loan meetings at Grameen Bank became impossible during lockdowns.
“It was not planned that way. COVID-19 forced us to move online. So, borrowers began using phones and digital transfers for repayments, while weekly group discussions shifted to Zoom,” he told Bernama in an exclusive interview.
The interview was conducted by Bernama editor-in-chief Arul Rajoo Durar Raj, alongside editors from the International News Service and Bernama Economic Service.
Yunus visited Malaysia from Aug 11 to 13 at the invitation of Prime Minister Datuk Seri Anwar Ibrahim.
The digital transition proved so effective that even post-pandemic, borrowers and staff continued using virtual platforms.
Yunus shared an example of a Grameen staff member managing loan collections from Norway entirely online.
“It amazed me that everything was done virtually, but still very complete and effective,” he said.
Established in 1983, Grameen Bank pioneered collateral-free microcredit, primarily serving women, and now supports over nine million borrowers in Bangladesh.
Its digital success is now influencing other microfinance programmes globally.
Malaysia adopted the Grameen model early through Amanah Ikhtiar Malaysia (AIM) in 1987, which still aids low-income households.
“It (digitalisation) came to us automatically, imposed by nature and now other programmes in microcredit are adopting what has been done,” Yunus added. – Bernama