Implementing Microfinance Information Systems

Transcript:Implementing Microfinance Information Systems:
Implementing Microfinance Information Systems Loretta Michaels Technology Consultant, CGAP February 8, 2012 2 CGAP is an independent policy and research center dedicated to advancing financial access for the world's poor. It is supported by over 30 development agencies and private foundations who share a common mission to alleviate poverty. Housed at the World Bank, CGAP provides market intelligence, promotes standards, develops innovative solutions and offers advisory services to governments, service providers, donors, and investors. At a glance: 7 locations: offices in Washington DC and Paris, with 5 regional representatives based in Abidjan, Dhaka, Moscow, Nairobi, and Ramallah ~50 staff ~70 countries with CGAP activities 150,000+ copies of CGAP publications distributed annually CGAP: Who we are CGAP Technical Guide: Information Systems Developed by CGAP’s IS Program, an initiative of CGAP and the EU/ACP Microfinance Programme Practical guide, templates, and tools to help MFIs and other financial institutions make the best technology decisions for your institution. Available at www.cgap.org/publications 3 Selection Project Preparation Needs Analysis Introduction Implementation Selection Project Preparation Needs Analysis Introduction Implementation The number of MFIs still using manual systems is dropping, to below 18%*, as MFIs acknowledge benefits of improved IS Growing interest amongst MFIs in new technologies to improve their outreach and customer service Mobile banking, ATM kiosks, smart cards, biometrics, hand-held devices, tablets What’s often holding MFIs back on these new technologies is limitations in their own back-end systems Keen interest in implementing upgraded IS, but concerns about cost/ROI and need to do it right the first time, save future headaches Why Are We Here? * CGAP 2009 CGAP has released a technical guide to assist in implementation of MFI Information Systems What a good IS can – and cannot - do for an MFI’s sustainability Focus on profitability Quality loans Provision for loan loss reserve Community accepted and appropriate accounting procedures Gathering and reporting of accurate and timely information Increased productivity and efficiency Lower transaction cost per loan Greater outreach in rural and urban areas Faster delivery of more products and services More accurate and timely reporting Better decision making NO YES An IS is not a substitute for good business practices Reinforces discipline in accounting and portfolio tracking Can link all data pertaining to a customer or customer group hence provide a consolidated view of each customer or group Allows for single entry of data that can then be used by many people. Data once