Rwanda, microfinance, and technology
by Lauren Braniff : Wednesday, November 25, 2009
A sound financial sector rests on timely and accurate information: microfinance institutions (MFIs) require information to monitor their business and make decisions, and supervisors rely on information to verify the soundness and stability of institutions and the market as a whole. At the foundation of this process lies the MFI’s “back office”, which can be broadly defined as the people, processes, and in some cases but not always, technology which help institutions manage their business.
A good back office system lies at the core of every successful financial institution. In many cases, however, MFIs struggle to generate accurate information and reports for themselves, funders, and supervisors. This limits the soundness and efficiency of MFIs, reduces the government’s ability to supervise the market, and in turn, negatively impacts the expansion of access to financial services.
