MFI Digitization in Central America’s Northern Triangle: The Impact of the COVID-19 Pandemic

Defying dire predictions from experts at the start of the pandemic, microfinance institutions in the Northern Triangle region of Central America showed great resilience through the challenges of the COVID-19 pandemic. Despite their relatively small scale, or perhaps because of it, the MFIs maintained stable profitability, and have proven to be very adaptable to digital change.

This paper presents findings from a study to assess microfinance sector digitization, commissioned by the Financial Access Initiative at NYU-Wagner with funding from the Mastercard Center for Inclusive Growth, and shares valuable recommendations to prepare the sector for the potential digital divide ahead.