June 2nd, 2009 at 11:22 pm, Tuvshintugs Munkhjargal ()

For me most interesting issue is how to make differentiation between MIS for regular banks and for Microfinance institution.
Assume that it will depend on the many things, amongst are size and characteristics of Microfinance.
I would be thankful if webinar will touch this area too.

June 3rd, 2009 at 4:56 am, Mostafa hosseini ()

I have some question :
1-I think it is possibler to generate flexible and customize MIS for MFIs,based on their type and requirement ,what is your idea?
2-MIS system is mandatory for MFI if want to apply for license?
3- I think there is inertia from microfinance employees to working with such new system,especially in developing countries,what is your solution for this problem?
4- as you know the main problem for microfinance to apply for new technology is lack of capital,I think, it would be useful if donors assign some part of their donation for mobilizing MFI with IS, it is useful for both of them, what is your idea?
5-could you list most important and determinant factors for microfinance decision maker for applying to MIS, then assign weigh and ranking them? for example number of customer,asset size,number of employee and so on.
6- and finally, what is the MIS average cost for MFI?
thank you

June 3rd, 2009 at 9:34 am, Nina Hobson ()

Revenues in the Angolan mobile communications market are strong and are set to triple by 2015. At the same time Angola has one of the highest rates of poverty in the world. Although at least 7.5 million Angolans are now mobile phone users, mobile banking initiatives which have been hailed as a complement to micro finance initiatives and as a major contributor to lifting people out of poverty, remain underdeveloped. Why is this and how must mobile banking be developed for poorer nations?

June 3rd, 2009 at 12:38 pm, George Staicu ()

Some quick questions that I have are the following:

1. The software that was presented by Mr. Conrad covers also RISK MANAGEMENT (interest rate risk, foreign exchange risk, liquidity risk) FINANCIAL MANAGEMENT , BUDGETING, etc ?
From my own and recent consulting experience (I am an independent consultant) I know that currently there are almost no software for MFIs that are covering these areas instead of being concentrated on basic financial statements and loan portfolio tracking ONLY. As a matter of fact last year I have implemented such Excel based MIS for financial risk and financial management at a MFI in the Balkans.
Risk management, financial management are ALSO important components of a reliable Management Information System. The producers of software for MFIs should take into consideration the RISK INTERACTION. MFIs are not dealing with CREDIT RISK only ! Liquidity risk , interest rate risk cand create important challenges on the sustainability of an MFI. For instance poor liquidity management may lead to the bankrupcy risk (not meeting the short term obligations ) as well as to the impossibility to disburse new microloans (reputation risk) and to and increased Portfolio at Risk (existing customer that sees they can not get new loans will not reimburse their existing loans) . At the same time poor interest rate risk may lead to profitability losses with similar negative effects.
If the software that was presented so far does not cover these IMPORTANT MANAGEMENT AREAS then the next questions are :

2. is there currently such (affordable pricewise) software for MFIs that contain INDEED a Management Information System to cover all management areas (including financial risk and financial management ) so that INFORMATION will be provided ON TIME in order to support an ACCURATE DECISION MAKING PROCESS ?.

3. If such comprehensive software is not currently available , then is CGAP planning to sponsor the development of such STANDARDIZED, INTEGRATED AND COMPREHENSIVE SOFTWARE easy to be customized in order to meet the needs of almost every MFI in the world? .

June 3rd, 2009 at 2:34 pm, Ajetunmobi Olumayowa ()

Hi everyone, I hope this till meets the webinar deliberations.

I have this few issues with the introduction of MIS and technology in Microfinance.

1. Considering the funds needed to develop a qood MiS for Microfinance, How do we thing small players in the field today will be able to afford MIS?

2. The introduction of MIS into Microfinance is meant to bring down cost, fast track operations, reduce fraud and generate qualitative information for evaluation and monitoring. We are yet to see a large number of institutions empirically coming out with evidences of how MIS has really added to the bottomline. I feel more still need to be done on this.

3. Innovative funds for MIS for MFI should be looked into for the development fo Microfinance across the world. Small Microfinance institutions with less 20,000 clients should be helped with technology that will be able to monitor thier operations. If possible donors should come more to the rescue of this microfinance institutions.

4. Definitely, MIS for MFI could be expensive, but not inclusion of MIS in the operation of Microfinance can send them out of operation. Hence an encouragement for MFI’s to use MIS that meets thier need of their operation and expand with the use of MIS as thier operation grows.

5. Local MIS initiativeld should be encouraged for MFI’s and adaptable MIS should also be given more chance in MFI\s around the world.

I look forward to a good Webinar.

Kindly present links to various documents and information on MIS and Microfinance.
Thank you
Ajetunmobi Olumayowa
AOW Integrated Resources
Lagos Nigeria

June 3rd, 2009 at 3:13 pm, Ajetunmobi Olumayowa ()

Please can we look into credit scoring and MIS in Microfinance.

Evaluation report generation by MIS in MFI for management decision .

Which direction are we MFI and Technology in MFI?

Is there a possibility of setting an agenda to full MIS compliance of MFI around the world?

July 2nd, 2009 at 6:09 pm, Jose Vallejo ()

Dear Webcast Fellows:
In our Uniminuto University, in Colombia, we are running a Loan & Saving Cooperative that gives small credits to many poor students in more than 20 cities, most of them in small villages. Our University has recently signed a US$15 million project with IFC (World Bank) that will permit it to become the largest university in our country, with sites in many small cities.
Most of our students are very poor and require cheap credits to enroll in the University. Thus, Uniminuto is currently subsidizing these credits with its own resources, but this is a very expensive practice, impossible to maintain with the expected future growth.
Therefore, we want to transform our Cooperative into a Microfinance Bank, learning from the experience of all the people involved in MFIs. But we have a big challenge: While microcredits for small business can charge high interest rates, student credits usually charge the lowest interest rates in the market. Thus, if we turn our Cooperative into a bank, collecting resources from public savings and deposits, as well as receiving credits from other financial institutions, the only way to lend money at low interest rates is organizing an extremely efficient bank, with very low operating costs, in order to minimize the financial support from the University.
We expect to attain this lower costs goal by operating in a big scale, and by putting in place an excellent system’s technology, and designing a very special microfinance bank, where most of the University students that will have internet connection, will not need face to face interaction with an officer for most of their transactions. Therefore, we are looking for an excellent financial software, with magnetic card capability, credit scoring, etc. Our University runs SAP, thus the administrative tasks of the Cooperative also will be running SAP, so the financial software will need interface to SAP. We are planning to get support for this project from the Inter American Development Bank (IADB), or another similar institution.
Thus, my question to you all is:
Do you think MIFOS can help us solve the big problem we are facing?
I will attend your webcast tomorrow to learn many important things about MFIs, and to see how we can find help to structure this ambitious project.
Thank you in advance for any help we can receive.
Jose Vallejo
Uniminuto University
Bogota, Colombia

July 6th, 2009 at 9:17 am, Sarah Rotman ()

Hi Jose,

The webinar already took place on June 3rd. I think you are reading the post as July 3, but it was last month in June. There is a link to the video of the webinar, so you can easily watch the event and follow the discussion by clicking on the link to the archived video. Thanks for your interest.