technology for scaling up microfinance james dailey grameen foundation usa december 12, 2004...

Technology for scaling up Microfinance

James Dailey

Grameen Foundation USA

December 12, 2004

jdailey@gfusa.org

Barriers to scale: Microfinance

Operational Efficiency

Information

Capital

…In the information business

Cash flow projections Loan officer productivity Financial statements Portfolio at risk, detailed aging Client retention Impact on poverty Regulatory reports Donor fund reporting Transactional histories

RTS Uganda Leveraged:

GSM network POS devices Smart Cards Existing MIS systems

But difficult because… Created entirely new channel, new processes Currently MIS systems for microfinance are

not sufficiently ‘standardized’

Mifos – Microfinance Open Source Data standards (transactions,

credit reporting, commercial bank interactions)

Architecture for microfinance “back office” operations

RTS as one “plug-in” module through open APIs

Alignment with Microfinance

Bottom of Pyramid Thinking Lessons Get close to customer Align design to “less is more” Commoditization through

standards Leverage existing technologies Business model means looking

for partners up front Innovation requires information