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

SKS Microfinance
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 -Operational and Financial Information
›› Total Clients - 702,545 ›› Total Outstanding - $ 64,640,479

›› Total Branches - 275 ›› Average Loan Outstanding per Loan Client

– Rs.5163
600000
500000
400000
Total Clients
300000
Year
200000
100000
0
1999 2000 2001 2002 2003 2004 2005 2006 2010

Business need to application / HW mapping
Application Portfolio
Business Need Hardware Sizing
Software/Technology Type
Reduce operational cost
Increase staff productivity MIS
Accountability of funds Structured Applications
Generate reports for effective and efficient
Business Intelligence / Data Warehouse
management
Cost- Perfomance Model
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