March 2023 - June 2023

Study on the potential of the digital ecosystem to support Village Credit Schemes (VCS) sustainability in rural areas

This study focused on Village Credit Schemes (VCS) in Laos, which are community-based initiatives encouraged by the government since the 1990s. The objective was to explore how the digital ecosystem, particularly in the provinces of Bolikhamxay, Bokeo, and Vientiane, could contribute to the sustainability and future development of VCS.

HORUS conducted this study in different steps:

  • Desk research on the functioning of VCS, financial digital services penetration, and the regulatory context;
  • Supply-side analysis from banks and non-banking DFS providers (Mobile Money Operators, Fintechs);
  • Demand-side and needs analysis from beneficiaries of VCS;
  • Identification of risks, needs and opportunities for VCS digitalization;
  • Recommendations.
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