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ICTs and Social Inclusion: The Case of Microfinance in Developing Countries
Abstract
Microfinance, defined as the provision of small-scale financial services for low-income populations, has widely been regarded in alleviating poverty and facilitating social inclusion. While much has been debated on the impact of information and communication technologies (ICTs) on social inclusion, paucity remains on how ICTs contribute to microfinance in developing countries. Social inclusion, particularly in the sense of increasing access to microfinance, is important to entrepreneurs in developing countries, especially among women entrepreneurs in rural areas. A major challenge is to understand how ICTs contribute to microfinance, both in terms of reaching to a large population, and in providing efficient and effective services. This chapter investigates the role ICTs play in facilitating microfinance in developing countries. To do so, the current literature on ICTs and social inclusion and the literature on microfinance are reviewed in order to provide an integrated conceptual framework on how ICTs contribute to microfinance in enhancing social inclusion in developing countries.
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