AI for Inclusive Finance at a Large MFI

  • AI for Inclusive Finance at a Large MFI

A prominent microfinance institution (MFI) serving over 2.5 million rural clients India wanted to develop a strategic roadmap for integrating artificial intelligence (AI) across its operations. The client, recognized for its high-touch, community-based model, sought to modernize its operations while preserving the personalized approach central to its success.

A framework to use AI to accelerate impact

We assessed its AI readiness, identify high-value use cases, and co-create an actionable strategy grounded in responsible and inclusive innovation. The engagement followed a structured approach starting with a discovery phase that included in-depth stakeholder interviews, data infrastructure audits, and deployment of a comprehensive AI Maturity Assessment across six dimensions: strategic alignment, data readiness, AI solutions portfolio, organizational capability, ethical frameworks, and operational integration.

Disparate Ambitions, Unified Vision

The findings revealed that while the institution had numerous digital initiatives underway, they were fragmented and lacked strategic coherence. AI awareness was growing but uneven, and most implementations were pilot-scale or exploratory. Based on this, we developed a three-phase AI roadmap:

  1. Foundation Building: Establishing AI governance structures, strengthening data quality and integration, and deploying staff training programs.

  2. Prioritizing Implementation: Identifying high-feasibility, high-impact pilots such as robotic process automation in loan application processing, AI-enabled vernacular language chatbots for customer support, and automated compliance reporting.

  3. Plan for Scaling: Planned to roll out advanced applications including AI-driven credit scoring models, digital twins for portfolio risk management, and hyper-personalized financial products tailored to rural women borrowers.

Technology with a Human Face

We introduced a responsible AI framework aligned with global best practices and local regulatory requirements. This included bias mitigation protocols, explainability standards, privacy-by-design guidelines, and AI ethics governance involving board and field-level representation.

Business Case-Driven Prioritization

To ensure alignment with strategic goals and maximize return on investment, Accendo supported the development of a detailed business case for each proposed initiative. This included cost-benefit analyses, impact-feasibility mapping, and projected ROI estimates over a 3–5 year horizon. The prioritization framework helped sequence pilots and scale plans based on value creation potential and implementation readiness. These insights were synthesized into a board and shareholder presentation pack, enabling formal endorsement and multi-year investment planning.

A Responsible AI Trailblazer

While implementation is ongoing, the strategy includes defined metrics to evaluate progress and impact:

  1. Operational Metrics: Reduction in loan processing time, improvement in staff productivity, automation of compliance tasks
  2. Customer Metrics: Uptake of AI-powered services, customer satisfaction with vernacular support, increased access to credit
  3. Organizational Metrics: Percentage of staff trained in AI tools, number of AI pilots scaled, governance compliance indicators
  4. Strategic Metrics: AI-aligned KPIs tied to business objectives, integration into core processes, ROI from digital investments

Charting a Responsible AI Future

This partnership marks a shift from ad-hoc digital experimentation to an enterprise-wide, mission-aligned approach to AI. As implementation unfolds, the institution is positioned to lead in responsible innovation, leveraging AI to enhance inclusion, efficiency, and long-term resilience in the financial lives of underserved communities.

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