A common concern surrounding automation in recent years is that it will result in widescale job losses as the work previously done by people is taken over by technology. Of course, the reality doesn’t really support this narrative, and indeed, companies that invest in technology often end up employing more people as a result of the improvement in their fortunes heralded by the investment.
The leadership team of the fintech company Kashat highlight the reality of investing in technology. They reveal that microfinance has traditionally been highly labor intensive, with many of the skills the same as those used in the sector for years. With the introduction of AI, new skills have been introduced into the underwriting process in order to serve at scale, while enabling employees to further expand their skillset and become even more valuable in the future.
The impact of this distinction is clearly visible in the growth rates across the sector, with those more tech-enabled firms growing far faster, and therefore employing more people, than their more traditional peers.
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