Driving Digital Transformation in Microfinance: Key Takeaways from the Tech Summit in Harare

At the recent Microfinance Tech Summit in Harare, Christophe Bretagnolle, Digitalization Expert at PCES, delivered an insightful presentation titled “The African Financial Inclusion Landscape.” His talk addressed some of the core challenges facing microfinance institutions (MFIs) in Africa and outlined how digital transformation, particularly through cloud-based solutions that can provide a scalable, inclusive path forward.

Barriers Faced by Traditional MFIs

Christophe began by highlighting a persistent issue across the continent: millions of Africans remain excluded from formal financial services. While MFIs have long played a critical role in narrowing this gap, they too face significant limitations, especially when it comes to outdated technology. Many institutions still rely on legacy systems, manual processes, and paper-based operations, making it difficult to scale services or efficiently reach clients in remote areas. The cost of infrastructure, particularly servers and IT hardware adds another layer of complexity for institutions that are often operating with limited resources.

Turning Point with Embracing Cloud-Based Core Banking

To overcome these challenges, Christophe introduced what he referred to as the “cloud banking revolution.” Cloud-based core banking systems offer a powerful alternative to traditional setups by eliminating the need for upfront hardware investments. Instead of purchasing servers or managing complex in-house systems, MFIs can now subscribe to a flexible, monthly service. These solutions are designed to scale with the institution’s growth and include automatic updates and maintenance, relieving internal teams from heavy IT burdens. In doing so, they allow MFIs to focus on what matters most—serving their clients better and faster.

Essential Features for a Modern MFI Core Banking System

A major theme of Christophe’s presentation was the importance of selecting a core banking system that aligns with the operational realities of MFIs. Essential features such as automated loan origination, customer journey tracking, savings products, and mobile integration must be built into the system by default. Given the mobile-first nature of financial inclusion in Africa, Christophe emphasized that mobile channels, like USSD, SMS, and integrations with popular platforms such as M-Pesa or EcoCash, must be considered foundational, not optional.

The Power of Multi-Tenancy

Christophe also underscored the benefits of multi-tenancy in modern CBS architecture. He likened it to living in an apartment building, where shared infrastructure lowers costs and improves efficiency, while each tenant still retains privacy and autonomy. This setup allows for collective bargaining with service providers, more robust security features, and the ability to share updates across institutions without disruption. For growing MFIs, multi-tenancy offers an affordable and sustainable way to benefit from enterprise-grade technology.

Tackling Concerns

Addressing common concerns among financial institutions, Christophe provided practical reassurances. Connectivity issues, for example, are mitigated by systems that can function offline and sync data when internet access is restored. Security often seen as a barrier to cloud adoption is, in fact, a strength, as cloud providers invest heavily in the most advanced protections available. While cost is another frequent concern, Christophe noted that cloud CBS is often more affordable than maintaining legacy systems, especially when factoring in hidden costs like IT staff, hardware upgrades, and system downtime.

AKIBA as a Digital-First MFI Solution

One of the most impactful parts of the presentation was the introduction of AKIBA, a cloud-native core banking solution developed specifically for African MFIs. AKIBA is purpose-built to accommodate local workflows and regulatory requirements, while offering affordable pricing and on-the-ground support. It reflects the kind of solution Christophe believes will define the next generation of financial service providers on the continent.

What’s Next in The Future of Microfinance Technology

Looking ahead, the presentation concluded with a glimpse into the future of microfinance technology. Christophe touched on emerging innovations such as AI-based credit scoring, which uses alternative data to assess borrower risk, and blockchain, which can provide secure and transparent records. He also emphasized the potential of open banking APIs to foster greater ecosystem integration, and the growing role of digital tools in supporting green finance initiatives.

Practical Steps When Preparing for Digital Transformation

For institutions that are still navigating their digital journey, Christophe’s key advice was clear: start small, invest in training, clean your data before migration, and choose partners with both technical experience and a strong cultural fit. These steps, when taken thoughtfully, can make the path to transformation smoother and more sustainable.

To explore these insights in more depth, we invite you to download Christophe Bretagnolle’s full presentation from the summit:

At PCES, we remain committed to supporting financial institutions across Africa in building future-ready systems. If your organization is exploring its next step in digital transformation, don’t hesitate to get in touch.