Role of it in islamic microfinance by waqas shahid


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Role of it in islamic microfinance by waqas shahid

  1. 1. International Conference onIslamic Microfinance<br />Organized By :<br />CENTER OF ISLAMIC BANKING & ECNOMICS<br />Held At:<br />Faisal Auditorium Islamabad - Pakistan<br />
  2. 2. Information Technology <br />as a tool in strengthen Islamic Microfinance<br />
  3. 3. Outline<br /><ul><li>Objectives
  4. 4. Technology in support to IMF (Islamic Microfinance)
  5. 5. Problem Areas in Manual Processing
  6. 6. Models Representation
  7. 7. Web application overview</li></li></ul><li>Objectives<br />It has been felt strongly to explore the relevance of Islamic Financial Instruments for developing effective Microfinance Instruments and functional framework for Banks and NGOs. The need of the hour is to consolidate the valuable efforts of the scholars and practitioners to come up with a common understanding and agreed upon model of Islamic Microfinance.<br />
  8. 8. Technology in Support to IMF<br /><ul><li> Financing application from initiation to disbursement is fully computerized & paperless
  9. 9. Relevant customer info updated in system are automatically populated into Credit System
  10. 10. Web based configurable parameter driven Credit system with fully integrated end to end workflows
  11. 11. Online Decisioning (Approve/Reject/Return)
  12. 12. Auto-SMS/ Email blast on the decision of application
  13. 13. Credit information retained in the system</li></li></ul><li>Problem Areas in Manual Processing<br /><ul><li> New Customer Profile Creation
  14. 14. Poor quality of financial data
  15. 15. No aggregate record </li></li></ul><li>Problem area<br /><ul><li> New Customer Profile Creation</li></ul>Improved workflow<br />Manual workflow<br />Post all forms to Head Office<br />Customer Profile form <br />filled on paper in field<br />Branch Manager Approval<br />Customer Profile form <br />filled electronically in field<br />Manager Approval<br />SMS/Email all forms to Head <br />Office<br />Head Office enters <br />info to database<br />Customer is approved!<br />Customer is approved!<br />Piles of extra paper and money gone to waste<br />Goals<br /><ul><li> Reduce costs
  16. 16. Improve client data quality </li></ul>Results<br /><ul><li>Low labour cost
  17. 17. Relative efficiency</li></ul>Methods<br /><ul><li> Simple web and mobile-phone application to record client data in field
  18. 18. Data transmission via SMS/Email
  19. 19. Automatic upload of data into database using a smart phone SMS-Server / Email-Server</li></li></ul><li>Problem area<br /><ul><li> Poor quality of financial data
  20. 20. No aggregate record</li></ul>Improved workflow<br />Manual workflow<br />Annual auditing by Bank / NGO<br />Copy of transaction record put in drop-box <br />Book-keeping done locally <br />Admin updates records & prints balances & dues<br />Weekly collections<br />Annual auditing by Bank / NGO<br />Weekly collections<br />Goals<br /><ul><li> Improve data quality & aggregate data
  21. 21. Automate weekly accounting function
  22. 22. Create sustainable business model</li></ul>Methods<br /><ul><li> Have an Accountant with a PC, serve a Federation
  23. 23. Charge nominal fee for data processing service
  24. 24. Use manual transport to ferry data back and forth</li></ul>Results<br /><ul><li>Weekly meeting time cut by half
  25. 25. Instant evaluation of financial performance of large group of SHGs possible</li></li></ul><li>Models at Alhuda HDA<br /><ul><li>Donation Based Model
  26. 26. Ethical Lending Model</li></li></ul><li>Donation Based Model (Waqf)<br />
  27. 27. Waqf Process<br /><ul><li>Zaqkkat
  28. 28. Sadka
  29. 29. Charity</li></ul>Lender<br />Borrower<br />Borrower<br />
  30. 30. Ethical Lending Model<br />
  31. 31. Ethical Lending Process<br />
  32. 32. Ethical Lending Process (Cont.)<br />Lender<br />
  33. 33. Pooling<br /><ul><li>Purchase Requested Goods </li></ul>Lender 1<br />Lender 3<br />Lender 2<br />Borrower<br />
  34. 34. Alhuda HDA Connects<br /> people through lending to alleviate poverty.<br />
  35. 35. Payback Process<br />
  36. 36.
  37. 37. Thank You ……<br />
  38. 38. Thank You<br />CENTER OF ISLAMIC BANKING & ECNOMICS<br />Head Office: 192- Ahmad Block, New Garden Town , Lahore, Pakistan Ph: +92-42-35913096-8, 35858990, 38407850 Fax: +92 -42-35913056E-mail :<br />Web:<br />