The objective of this study is to address these issues by providing clarity on the impact of DFAs by examining the business case, implementation process and effects for three MFBs around the world. Additionally, we provide lessons learned from the DFAs reviewed which could serve as guiding principles for other financial institutions.
Another major goal of this study was to develop and analyze the business case associated with deploying a DFA. To achieve this, we reviewed implementation costs and assessed the benefits that accrued to each institution. We then created a business case which is explained in detail, and is also available as a standalone tool.
The study of these three early DFA adopters revealed that although the primary motivation for implementing DFAs was to improve effciencies and processes surrounding loan processing, the institutions also experienced a variety of benefits that went beyond their core objective. While all three MFBs recognized that DFAs can be used to support activities such as savings mobilization, social impact measurement, and insurance coverage, their initial usage focused on credit offerings. Therefore, this study reveals findings associated with the impact of DFAs on loan application processing. The study breaks down this impact across the dimensions of client and institutional benefits, and uses these as a foundation to outline the business case.