Mifos is an internet based management information system designed for microfinance. The system is user friendly and flexible for the company and it’s client information. Mifos is a unique system that provides tools which allows the user to research client’s information. This information used for this system would research information such as payments, client personal information for their accounts, reports and much more. The system helps the user navigate to different accounts and provides details of an individual client. There are several tabs the user can navigate to with the system. The first tab is the home tab which allows the user to search for the client’s information by name or groups. The second tab is clients and accounts tab to give full detail of the client’s information. In this tab the user can assist the client with opening accounts, closing and reviewing the client’s information and questions the client may have. The third tab is the report tab; this tab is used to process operational and financial reports. The last tab is the Administrative tab which is only used by a designated office administrator to create new system users and find office products. These tabs are provided to make sure information can be accessed and the side tabs are in place help the user navigate through the system without problems. The Mifos system is for IT skilled users and designed for financing purposes only.
...MANAGEMENT INFORMATION SYSTEM FOR MICROFINANCE |
ICT can be a strategic tool in making Microfinance Institutions (MFIs) more efficient and effective. MFIs can reach more people in a more economic way by implementing the right Management Information System (MIS). While a few MFIs are making good use of technology, the majority are facing difficulties in getting the right solution. Reasons for this include:
* Insufficient organizational and human capacity
* Unavailability of suitable MIS applications for microfinance
* Diversity in business processes and frequent changes in procedures
* Risk of failure of the MIS
* Diversity of geography and language
* Unavailability of vendors and their capacity to implement and support IT solutions
* High cost of IT solutions for MFIs
* Lack of commitment of management and key decision-makers within an MFI
* Lack of awareness about the importance of IT
The back-office MIS is the backbone of any Information System solution and yet it has not received much attention. MFIs, whether large or small, need to have a strong back-office MIS before attempting to deploy any advanced front-end applications or delivery channels. These would be worthless without having a strong and flexible back-office MIS in place.
Management information systems...
...Does the evidence on the use of special microfinance financial instruments indicate that they are successfully solving the problems of financial service provision in EME’s?
Lack of access to credit is generally seen as one of the main reasons why many people in developing economies remain poor. Microfinance is banking for the poor. Mission, target group, and the applied credit technologies are features clearly distinguishingmicrofinance from the traditional banking sector. The poor in developing economies have increasingly gained access to small loans with the help of so-called microfinance during the past ten years.
The essay’s objective is to introduce microfinance and its financial instruments and then discuss if it successfully solving the problems of financial service provision in EME’s.
The Definition of Microfinance and Its Development
Microfinance is defined as is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services. The microfinance is nothing short of a revolution or a paradigm shift (Robinson 2001). The microfinance movement has helped to reduce poverty, improved schooling levels, and generated or expanded millions of small businesses (e.g. Khandker 1998). The idea of...
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Whether it is a small organization or a multi-national organization in which every customers count and it is important to develop strong relationships with customers based on loyalty and providing maximum satisfaction. It is possible to maintain one time purchases for a regular customer or even a window shopper who visits every weekend by offering a financial benefit, by establishing proper online network and a reward program which will have socially have the potential to spread word about the business and become loyal customers. Recognition is best word acknowledge the customer with distinct gratification.
Majid Al Futtaim Retail – Carrefour was introduced in 1995 alongside the opening of Deira City Centre store which turned to be quiet popular within Middle East it’s known to be the fastest growing chain of hypermarket in the region. (http://carrefouruae.com/CustomPage.aspx?id=aboutus)
We are totally focused on meeting the expectations of our customers. We aim to offer our customers the best price and the best merchandise, in every store, in every country.
Our vision is to be the benchmark in modern retailing in each of our markets....
...India over the past decade, involving the provision of thrift, credit and other financial services and products of very small amounts, with the aim to raise income levels and improve living standards. Most notable among these microfinance approaches is a nationwide attempt, pioneered by non-governmental organizations, and now supported by the state, to create links between commercial banks, NGOs, and informal local groups (‘self-help groups’, or SHGs). Better known as ‘SHG Bank Linkage’, evidence suggests that the model has effectively targeted poorer segments of the rural population and helped reduce the vulnerability of its clients. The growth of SHG bank Linkage has been truly remarkable, particularly since the late 1990s. In 2003, the number of SHGs linked to banks were close to 800,000, compared to just 33,000 in 1999. SHG Bank Linkage reaches some 12 million women and their households. But outreach is still modest in terms of the proportion of poor households served, covering less than 5% of India’s rural poor.
SHG Bank Linkage seems to have all the right ingredients for scale-up. This paper argues that the success achieved so far by SHG Bank Linkage is attributable to the following key factors, that may also be relevant to other microfinance models in India and elsewhere. First, is the fact that SHG Bank Linkage is well aligned with Indian history and circumstances, and capitalizes on the country’s vast network of rural...
...Practical Challenges of Microfinance Institutions Dilin Lim Master in Advanced Finance candidate December 2009
Completed with direct supervision of: Prof. Eloy Gracia
This research paper discusses the optimal combinations of stable funding and operating efficiency of Microfinance Institutions to reduce interest lending levels to the Micro Entrepreneurs.
PRACTICAL CHALLENGES OF MICROFINANCE INSTITUTIONS
HYPOTHESIS: In all models ofmicrofinance, what are required are optimal combinations of stable funding and operating efficiency. We will examine to what extent the operational aspects of developing an efficient lending structure, transparency, loan follow-up and stable sources of funds contribute to the reduction of interest rates paid by the poor i.e. the client. INTRODUCTION The considerable interest that has been developed in the financial world and academia for the topic of microfinance cannot be underestimated. In fact, one of the most impressive developments in the world of social economic development in the last few years has been the successful explosion and impact of microfinance on society at large. Ever since socio-economic development became institutionalised in the form of the objectives guiding development banking, the elimination of poverty has been proved elusive. However, well known bottom of the pyramid seems to have now found in Microfinance is...
...IRACST - International Journal of Computer Science and Information Technology & Security (IJCSITS), ISSN: 2249-9555
Vol. 2, No.4, August 2012
Performance of Microfinance Institutions in
Adhoc faculty School of Management, NIT Warangal
Abstract: Microfinance can be described as
an umbrella under which financial services
including micro credit are provided to the
low income group. The need for the
unfolding ofmicrofinance began in the
developing nations more than thirty years
ago. Microfinance refers to small scale
financial services for both credits and
deposits that are provided to people, who
farm, operate small or micro enterprise
where goods are produced, recycled,
repaired, or traded. Microfinance playing an
important role in developing the rural areas
by providing loans to people at lower
interest. The present research paper
describes the role of Microfinance
institutions in developing the conditions of
people who are living in rural areas.
Key words: Microfinance, Rural, Interest
Microfinance can be described as an
umbrella under which financial services
including micro credit are provided to the
low income group. The need for the
unfolding of microfinance began in the
developing nations more than thirty years
ago. Microfinance refers to small scale...
...changes in the ﬁeld of community development is the growing importance of microﬁnance, both to provide access to credit and as
a vehicle for empowerment. Community banks are recognized for their
role in meeting these goals, although they remain controversial, as the
goals of microﬁnance are not always agreed upon, with government
ofﬁcials and community members emphasizing different interests. We
examine the Los Angeles Community Development Bank to glean
further lessons regarding the role community banks can play in community development. Among the lessons from this experience are that
politics are inescapable in the design of community banks; the economics of banking tends to undervalue community needs; and cultural
factors include both professional and community-level challenges.
Accounting for these factors can help community banks empower
communities to meet the challenges of eliminating poverty.
This article examines community development in Los Angeles, more
speciﬁcally the role of the Los Angeles Community Development Bank
(the Bank) as an agent of empowerment. Recent research on community
banks and other microﬁnance institutions and programmes suggests that
understanding the roles for national, local, and community/household
institutions and actors can bolster performance (Gulli, 1998). Furthermore,
case studies indicate that the role for the state in microﬁnance programmes...
Microfinance is the provision of financial to people who are living in poverty. The system is providing small loans to poor person who want to expand their business. A series of financial service include loaning, saving, insurance and so on. There are two main characteristic on microfinance. Firstly, it is focus on below average income person or poor person for their customers. Secondly, it must ensure that the possibility of its own sustainable development. The beginning of the activity was most closely associated with economist Muhammad Yunus in 1976. He was born in Bangladesh. Between 30 years, the success of Grameen Bank which was built by Yunus was noticed by the world. Then, microfinance has covered nearly development countries and some developed counties.
In the case of the text book, microfinance was present by two extreme parts, macro success and global mess. For the macro success, lender loaned money to women in order to support their family. Then, much family got rid of poverty. By 2001, more than 7,000 microfinance institutions had served 120 million borrowers around the world. On the other hand, there are two debates lead to huge problems. Firstly, most of microfinance institution’s new shareholders were rich investors. Secondly, several competitive microfinance institutions loaned money to the same uneducated clients, if crop or ventures...