Kuala lumpur: The adoption of digital platforms has not only sustained but also expanded microfinance operations since the COVID-19 pandemic, said Grameen Bank founder Prof Dr Muhammad Yunus. Yunus, who is also the Chief Adviser to the Government of Bangladesh, highlighted that the transition to digital systems was not initially planned but rather a necessary response to restrictions during the pandemic.
According to BERNAMA News Agency, Grameen Bank’s regular in-person gatherings for loan payments, applications, and group support became impossible due to the pandemic. ‘It was not planned that way. COVID-19 forced us to move online. So, borrowers began using phones and digital transfers for repayments, while weekly group discussions shifted to Zoom,’ Yunus stated in an exclusive interview with Bernama at the conclusion of his three-day official visit to Malaysia.
The interview, conducted by Bernama Editor-in-Chief Arul Rajoo Durar Raj, along with Editor of International News Service Voon Miaw Ping and Assistant Editor of Bernama Economic Service Kisho Kumari Sucedaram, revealed the Nobel Peace Prize laureate’s observations during his visit between August 11 and 13, on the invitation of Prime Minister Datuk Seri Anwar Ibrahim.
Yunus noted that the shift to digital operations was so effective that even after the pandemic, borrowers and staff did not fully return to physical meetings. He recounted the story of a Grameen staff member responsible for loan collections who was based in Norway but continued to work seamlessly through online platforms. ‘It amazed me that everything was done virtually, but still very complete and effective,’ Yunus said.
Founded in 1983, Grameen Bank pioneered collateral-free microcredit to empower the poor, particularly women, and today serves more than nine million borrowers in Bangladesh. Its digital adoption is now serving as an inspiration for other microcredit programmes worldwide.
Malaysia was among the first to adopt the Grameen model through Amanah Ikhtiar Malaysia (AIM) in 1987, which continues to provide small-scale financing to low-income households. ‘It (digitalisation) came to us automatically, imposed by nature and now other programmes in microcredit are adopting what has been done,’ Yunus, the 85-year-old economist and social entrepreneur, added.