Worldwide—Digital Transformation Technical Assistance Facility Framework (DTX TAF)

Client: FMO (Dutch Development Bank)

Duration: 2024-2027

Region: Worldwide

Country: Worldwide

Solutions: Economic Growth

Many smaller financial institutions, particularly in low-income or post-conflict contexts, still rely heavily on paper-based systems (e.g., for loan application processes). Digitalization of these processes will introduce controls for risk and likely help foster inclusion in the financial institutions’ portfolios. Moreover, the COVID-19 pandemic and its economic impact crystalized the importance of digitalization for the resilience of financial institutions and their clients’ livelihoods.

The U.S. International Development Finance Corporation (DFC) and FMO, the Dutch entrepreneurial development bank, have joined forces in the DFC-MASSIF COVID-19 Response Co-Financing Facility. This collaborative effort is designed to support micro-, small-, and medium-sized enterprises (MSMEs) impacted by the COVID-19 crisis.

The Digital Transformation Technical Assistance Facility Framework (DTX TAF), funded by FMO, supports financial institutions and agribusiness companies in their digital transformation journey by addressing knowledge opportunities and limitations of their current IT systems, product offerings, and corporate strategy. The TAF also assists in the development of innovative digital financial products.

DTX TAF supports 10-12 target financial institutions that offer a wide array of financial services, including, but not limited to, saving products, business lending, guarantees, leasing, and insurance. Institutions will predominately be financial intermediaries, particularly microfinance institutions, and banks or cooperatives that target MSMEs. DTX TAF also supports a small number of agri-businesses.

Beneficiary countries include Cambodia, Guatemala, India, Indonesia, Kenya, Nigeria, Pakistan, Uganda, and Zambia, although this may expand to include any from the complete list of 65 countries that are included in FMO’s MASSIF financial inclusion fund.

DTX TAF provides a competitive framework for FMO to efficiently procure specialist digitalization advisory services to selected institutions and agribusiness clients participating in FMO’s DFC-MASSIF Co-Investment Facility.


Sample Activities

  • Design and implement strategies and approaches for companies’ digital transformation journey.
  • Execute change management plans and implement organizational structure changes.
  • Offer training programs to bridge skill gaps and prepare employees for launching digital products and system upgrades.
  • Design and develop digital products aligned to the client protection pathway.
  • Provide IT support for product and software development for beneficiaries.
  • Identify and support the establishment of partnerships among regional and local actors to address literacy challenges and promote responsible digital practices.


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