The difference between success and
failure of any organization depends on the availability of decision-making
information at various stages. From national security to sustainability
of organization depends on power of generating Information from
raw data. Its clear that value of information system can be evaluated
by the way it can generate information to perform job and to make
appropriate decisions. The Micro Finance Sector is not an exception
in this concern. The information needs of Micro Finance Sector range
from the basic client information before joining the Micro Finance
Group to detailed Portfolio performance statistics and the post-funding
information of the clients to learn the impact of micro finance
on their lives.
It’s a well-known fact that information has different characteristics,
depending on the purpose for which it is used. Usually the same
information will need to be presented in different forms for differing
requirements of users. This is the specific area where MFIs find
it difficult to deal with. If the system followed for data/record
maintenance is completely manual – Forms, Registers, Ledger
etc; operational staff members will need large amount of time only
to make entries in to the manual records, analyze the data there
from and obtain the reports as required. The main problem with the
Manual system is that it is laborious, inefficient and prone to
errors as also data manipulation and information loss through improper
storage. Basic level of Information use is for strategic planning,
management control and operational control.
The organizations with semi-automated mode of system will also
face similar problems. Usage of Spread sheets is common in MFIs
– but their usefulness is very much limited and is rather
cumbersome and tedious. More over this two dimensional – rows
and columns – method will be difficult to maintain the relationships
between multi-layered data. Though the system does the required
work, it is not suitable in the long run to accommodate the growing
requirements of the organization with respect to flexibility, product
complexity and lending methodologies. These data must be stored,
manipulated and presented comprehensibly to users so that they can
make sound management decisions. Therefore developing and deploying
an MIS is very important for the MFIs.
The major differences in formal banking system and development
finance system is another factor that affects the availability of
standardized MIS. In the case of formal banking path, the availability
of set procedures, methodologies and interaction with a general
type of customer in characteristics and transactions make the development
of an automated system easy. The characteristics of Development
sector – Clients from different demographic areas, customized
products, different screening methods used by MFIs, and the different
reporting formats make the development of an Information system
tedious. Overheads start even before identifying the beneficiaries
(clients) like identifying the proper channels through Non Government
Organizations (NGOs) and Groups. In the case of loan application
processing the need exists for cross-checking with historic data
of live and closed loans for defaulters. A major part of the operational/administration
staff time is used for executing the repeating tasks of cross-checking
and finding defaulters. As an important part of processing cycle
that affect the financial security of the MFI; this can’t
be ignored. Hence deployment of appropriate technology based solution
that allows the organization to perform the mentioned tasks with
less or no level of customization is the need of the time. Also
this projects the necessity of an enterprise system that can use
the data generated in each level in the cycle for other functional
areas.
From the financial point, reduction of high transaction cost is
an important matter to be considered in the Micro loans. The lower
the loan, the higher the incidence of transaction cost. Hence the
loan size, and the option to customize the loan size by no. and
amount is very important. A system to dynamically track/verify the
changing requirements of the products (loan) is a necessity. So
a generalized system to keep track of the different products for
different clients is very important. Basic requirement of a system
for an MFI is a system to track the core information needs, such
as loan portfolio and accounting information. Later the other functional
levels can be covered with several tailored applications for Human
Resources & Payroll, Budgeting; Fixed Assets etc. can be added
to the system.
The design of the system for loan monitoring could be made more
specific and more effective by specifically focusing on different
parameters that can be used to customize the selection of clients.
Loan applications filled out by the clients and collected by the
loan officers fed into the system should give a preliminary verification
with respect to the procedure set by the MFI. Initial level of risk
management incorporated by this way is important to avoid the chances
of write-off of funds/service charges. Improved risk management,
in turn, leads both to greater profitability and to greater depth
and breadth of outreach. Facility to generate reports on risk management
in MFI, NGO and SHG levels is also required.
By computerization, MFIs are really generating the precious value
called time, that help the MFI staff to use constructively for the
development activities than the repeating tasks of verifications
and validations. Providing loan officers with accurate and up-to-date
client information – loan repayment, via the Internet/Mobile
is required to increase the efficiency and performance. Provision
to email automated alerts on the information about arrears loan
officers will assist to effectively track those cases and take action.
Audit trail is another option required to lower error rates and
high security level since every single entry is important for MFI
management viewpoint and hence data if recorded together with operators
name; finally helps every action to be traced back.
Use of emerging technology for the overall development of the MIS
is also a necessity since it ensures that the solution developed
today are consistent with tomorrow's competitive imperatives and
realities. A comprehensive MIS system integrating the portfolio
management system, group member information registry and savings
monitoring system & accounting system in a single package can
benefit the MFIs to a large extent. There should be option to increase
the flexibility in order to accommodate various lending methodologies,
interest types, deposit rates and repayment policies (frequencies).
Also required is an efficient way to avoid the laborious cut-copy-paste
way of transferring data from one file to another. A better system
is one that allows the management to make better decisions by providing
timely, reliable, accurate reporting on current and completed loans
and the flexibility to add products/depending conditions introduced
by MFIs from time to time.
Management Information Systems (MIS) can be Manual, Semi-Automated
or even Fully Automated. Further, recent dimension is automation
through the web-based applications. The micro finance operation
spreads through the spectrum of geographical vastness, regional
peculiarities, complexities of operational details from the group
level to the organizational level etc. making it difficult to ensure
timely accurate information to be available at the decision making
level. It is this situation that will compel MFIs to automate and
improve their MIS continuously. A stable and mature Management Information
System is required by MFIs to avoid the cases that will even affect
the sustainability of the organization.
Among many application solutions available globally, IMP@CT of
OTCO International Ltd., Bangalore in India is one that has the
capability of supporting on real time with flexibility and scalability
to suit the size and growth of the organization. This product is
now available in Bangladesh through OMNISOFT LIMITED, joint venture
of OTCO International Limited, India and ENEM-OMNI companies, Bangladesh.
IMP@CT is an End-to-End Enterprise Resource Management (ERM) system
for Micro Finance Operational and Organizational management. This
unique software solution is being developed by OTCO International
Limited – 22 year old publicly listed software development
firm in Bangalore in India, the silicon valley of Asia, with the
total domain support from The Bridge Foundation (TBF), Bangalore
a well-known micro finance NGO. TBF - a support partner for Opportunity
International in India is a pioneer in Micro Finance operations
with an impressive growth in recent years. IMP@CT is a comprehensive
software system available in Client-Server as well as web-based
versions. The system architecture is specially made in the brick
block concept with flexibility and scalability to suit the organizational
needs and growth pattern. A special analysis tool has been provided
to assist clear measurement of transformation brought out by micro
finance support to individuals and groups.
IMP@CT - Software System built on Knowledge Foundation
IMP@CT is the result of over 30 man-years of combined domain
and technology expertise evolved from the time tested methodologies
in Micro Finance Sector and the Software development life cycle
approach Technology and software project implementation by highly
skilled group with wide experience in complex application development
using latest technology. The innovative design of IMP@CT with the
outlook of Organizations growth in different levels and the availability
in different scale-down versions suitable for different type of
organizations help MFIs to stay on top.
Features that make IMP@CT a Unique Enterprise Management &
Information Tool
- Transparency to Donors
- Operation Process Efficiency
- Real Time Data Management for Timely action
- Access to system from different geographical locations through
Internet
- Power of database driven Analysis tool that provides variety
of analysis reports
- Capability to support real time field data input using PDAs
and GSM communication facility.
- Capability to support organizational management.
IMP@CT is built on the brick block concept with flexibility and
scalability to suit the organizational needs and growth pattern.
The modules of IMP@CT are:
Administration & Security (Default module with all packaging
combinations)
- Finance
- Portfolio Management & Group
- Donor Login
- Impact Analysis
- Human Resource Management System
- Fixed Assets
- Budget
- Sales and Purchase
Information Technology Systems is an inescapable need of MFIs for
sustainability of operation and achieving growth. Undoubtedly, IMP@CT
founded on the sound Micro Finance domain expertise coupled with
matching implementation Technology is sure to fit as ideal MIS for
MFIs. IMP@CT with its flexibility of deployment is a scalable tool
that can fit to size and shape of the MFI as a straight jacket.
Go to OTCO Home Page
Go to IMP@CT Home Page
|
