MFIs Urged to Thoroughly Evaluate Technology Providers Before Purchase

Surafel Teshome highlighted a critical challenge facing Microfinance Institutions (MFIs) when adopting new fintech solutions. He noted that technology providers usually understand their products thoroughly and arrive fully prepared to make a persuasive sales case to potential clients. To balance this dynamic, MFIs must be equally prepared to critically question the software, features, and long-term implications of the technology being offered. If the vendor is the only party defining the business problem, estimating the value of the deal, and explaining potential operational risks, the financial institution risks ceding its decision-making authority to the seller. Consequently, Ethiopian microfinance and fintech operators are advised to take full control of their digital transformation assessments to safeguard their institutional interests.