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