Anybody out there?… outsourced MFI information systems
Putting in place a cost-effective, efficient, scalable core banking system (or information system) is a tough job for any business. For many small and medium microfinance institutions (MFIs), it’s proven to be virtually impossible. Strong IT staff are hard to come by and retain, managers have limited training in making IT decisions, and getting loan officers and accountants to buy into a new system is no piece of cake.
When are these MFIs going to learn to stick to their knitting and outsource their IT systems, just like the rest of the financial services world? … Well, maybe it’s not so easy…
So far there don’t seem that many providers of outsourced solutions - FINO and perhaps Atyati Technologies in India, Microbanx’s COBIS software in Latin America, and… ?
CGAP, with USAID’s AMAP knowledge generation program, is researching how well outsourcing has worked for banks and those MFIs that have tried it. CGAP is also helping to shape a number of projects that will help us learn how MFIs can transition from in-house to outsourced easily, and what benefits this really yields.
So if you’re in the outsourced IT for MFI game, either buying or selling, let us know.
