Download - Microfinance in India - ITM Study- SPJCM
STUDY : IT INFRASTRUCTURE
SOLUTIONS FOR MICROFINANCE
IN INDIA
Presented for Educational Purpose – 2007 by management students of S.P. Jain Center of Management – Dubai / Singapore
Agenda
About Microfinance sector
SKS – A Microfinance enterprise
Business need to application / HW mapping
Models
Conclusion
MICROFINANCE IN INDIA
Practice of providing financial services, such as microcredit, microsavings or microinsurance to
poor people
Key tool to reduce poverty and promote social development
Huge market for MF since India is estimated to have 400 million poor people i.e. one-third of world’s poor
Hidden wealth of the poor
Launched in 1998 and delivers microfinance through a Grameen(village) banking program that utilizes the joint liability model developed by the Grameen Bank of Bangladesh
SKS is one of the fastest growing microfinance organization in the world
Achieved 161% growth, with 98% on-time repayment rate for year ending 2006-2007
SKS Microfinance
›› Total Clients - 702,545 ›› Total Outstanding - $ 64,640,479
›› Total Branches - 275 ›› Average Loan Outstanding per Loan Client
– Rs.5163
SKS -Operational and Financial Information
0
100000
200000
300000
400000
500000
600000
1999 2000 2001 2002 2003 2004 2005 2006 2010
Total Clients
Year
Business need to application / HW mapping
Business Need
Application Portfolio
Hardware Sizing
Software/Technology Type
Reduce operational cost
MIS
Structured Applications
Cost- Perfomance Model
Increase staff productivity
Accountability of funds
Generate reports for effective and efficient
managementBusiness Intelligence / Data Warehouse
Create collaborative environment Messaging Application Unstructured
Manage small transactions efficiently Smart cards/Handheld Devices Niche
Application Portfolio - MIS
Network Layout
SKS Microfinance – A cost analysis
Smart Card $2.4 per card
Smart Card Reader $110 per reader
1 Feet officer handle 450 (approx) clients , Total clients 7,03,000
1570 officers needed to the handle the existing number of clients
Server:
$ 2500 - $ 3100 Entry Level ( Regional Servers ) – IBM
$ 17000 - $ 18000 Mid Range ( Central Servers) – IBM
Router:
$330 per Router – D Link
Conclusion
This is the 1st Generation Model.
This MF company will be diversifying into Insurance & Savings Bank as well, Therefore we
will be needing more bandwidth , processing , MIS and storage capabilities. Therefore this
architecture is scalable.
We had an alternate choice of going with RELIANCE DATA CENTER in house datacenter works out to be
more cost effective over the long run.
THANK YOU !
Presented for Educational Purpose – 2007 by management students of S.P. Jain Center of Management – Dubai / Singapore