Mifos: Ending Poverty One Line of Code at a Time
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Presentation about Mifos OSS Microfinance MIS, given at the Open World Forum's Humanitarian Open Source track on September 23, 2011 in Paris.

Presentation about Mifos OSS Microfinance MIS, given at the Open World Forum's Humanitarian Open Source track on September 23, 2011 in Paris.

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  • Speak to why an open source platform and why it matters for MFIThey need access to local support, need to be able to localizeNeed to flexibly support multiple productsNeed to connect to credit bureaus, national ID systemsNeed to integrate with mobile banking, atm networks, etc.Need to report back to funders, regulators, etc.

Mifos: Ending Poverty One Line of Code at a Time Presentation Transcript

  • 1. Mifos: Ending Poverty One Line of Code at a Time
    Humanitarian FOSS trackat the Open World ForumParis; September 23rd, 2011
    Michael Vorburger, for Mifos Community
  • 2. $ ls ~/presentation/
    • About Microfinance, a short introduction
    • 3. Impressions – a few photos from an India visit
    • 4. About Mifos (briefly, more on request!)
    2
    Mifos: Ending Poverty One Line of Code at a Time
  • 5. $ whoami
    • Volunteer for Mifos since mid 2009, time permitting(java.net / mifosforge.jira.com & Wiki migrations; Workspace 2.0; Executable WAR; conf’s.)
    • 6. Day job as Development Manager for Eclipse-based design time modeling workbenches at TEMENOSThe Banking Software Company. GIVING THIS PRESENTATION IN PRIVATE CAPACITYON A DAY OFF.
    • 7. Lives & works in Lausanne, Switzerland.
    • 8. http://vorburger.ch ● mike@vorburger.ch ● @vorburger
    3
    Mifos: Ending Poverty One Line of Code at a Time
  • 9. $ file /poverty – Hello World
    Of total world population of 6.8 billion:
    • 880 million survive on less than USD 1/day (13%)
    • 10. 1.4 billion survive on less than USD 1.25/day (20%)
    • 11. 2.6 billion survive on less than USD 2/day (40%)
    International “Poverty Line” = USD 1.25 / day 
    Millions children die of hunger every year.
    Source: World Bank Development Indicators 2008
    http://en.wikipedia.org/wiki/Poverty#Absolute_poverty
    http://en.wikipedia.org/wiki/Theories_of_poverty#Poverty_as_restriction_of_opportunities
    4
    Mifos: Ending Poverty One Line of Code at a Time
  • 12. $ man microfinance
    • Microfinance, a proven poverty reduction strategy, provides financial services to very low-income “unbanked” clients, who lack access to “traditional” banking services (only “loan sharks”), to “help them to help themselves”, to:
    • 13. Smooth irregular income flows
    • 14. Provide cushions for emergencies
    • 15. Expand economic activities
    • 16. Prof. Muhammad Yunus(Nobel Peace Price 2006) founded the Grameen Bank in the late 1970s in Bangladesh, and scaled profitable microloans to millions of people. Quote: “Our grandchildren will go to museums to see what poverty was like.” (http://www.grameen-info.org/index.php?option=com_content&task=view&id=338&Itemid=375)
    5
    Mifos: Ending Poverty One Line of Code at a Time
  • 17. $ man microfinance
    • Microfinance Institutions (MFI) lend ~ $100-ish amounts (e.g. 12’000 INR), repaid / collected in (bi)weekly over 12/18/24 months, so in 36/50-100 installments.
    • 18. Microcredit customers are often women only (by MFI choice); money used for things such as bangles shop, family painting business, etc.
    • 19. Loan Officers go out to meet clients, typically (bi)weekly to collect repayments. Customers don’t come to branch offices to deposit or withdraw. LOs bring the collected money to BOs (and, in some cases, stay and sleep there!)
    • 20. Typically ~ 98% loan repayment (recovery) rate; e.g. Nirantara in Karnataka/India 99.6% (of 7000 clients with 20’000 Loans)
    6
    Mifos: Ending Poverty One Line of Code at a Time
  • 21. $ man microfinance
    • Solidarity Lending (Joint Liability model) is common, creating a bond among a Group of clients. - Centers are sets of Groups, managed by a few LOs in a local Branch, org. by Areas. Groups rural, meetings at e.g. group leader home, or a temple or community site; branches few rooms in small towns.
    • 22. Products offered depend on country and respective regulations: In e.g. India today often only Loans, rarely Savings Deposit, but in e.g. the Philippines Savings accounts is more common. Growing trend towards broader financial services, incl.microinsurance (often life, some health), pensions, etc.
    • 23. Typically tied to an “educational” programs: Week long Compulsory Group Training (CGT) introduction loaning; also “stories” read out at each group meeting, e.g. reg. infant hygiene.
    7
    Mifos: Ending Poverty One Line of Code at a Time
  • 24. $ man microfinance
    • MFIs vary significantly in scale and reach: from small NGOs (100s of clients) to mid-size non-profits (tens or hundreds of thousands; e.g. GrameenKoota [GK] in India using Mifos on >500’000 Clients), to for-profits (e.g. publicly listed [non-Mifos] SKS Microfinance in India).
    • 25. Interest rates in the 20–30% range. MFIs typically borrow from traditional banks at around 8% - 12% interest (India); adding on top of it their operating costs, which are higher due to shorter collection cycles and almost “doorstep service”.
    • 26. http://en.wikipedia.org/wiki/Flat_rate_%28finance%29
    • 27. http://www.mftransparency.org/
    • 28. Challenges incl. (e.g. in India) regulatory uncertainty (Maligam report), or overheating with “too many loans” by competing MFIs and increasing defaulting problems (compounded by lack of Gov. ID)
    8
    Mifos: Ending Poverty One Line of Code at a Time
  • 29. … group meeting (GK)
  • 30. … group meeting (GK)
  • 31. … group meeting (GK)
  • 32. … branch of GK
  • 33. Loan Officer counting cash after returning from group meeting
  • 34. Data Entry officer (Mifos)
    BanashankariBranch Office
    GrameenKoota (GK)
    Bangalore
    India
    Mifos: Ending Poverty One Line of Code at a Time
  • 35. Mifos Reports (BIRT, Pentaho)
  • 36.
  • 37.
  • 38. Technology for Microfinance
    Like any business, MFIs adopt technology to:
    • increase operational efficiency
    • 39. scale better and faster
    • 40. automate thousands of manual transactions
    • 41. free up loan officers to reach further out
    • 42. provide security and convenience
    • 43. e.g. via mobile banking; Mifos M-Pesa interface!
    • 44. know your customer (KYC), e.g. credit bureaus
    • 45. lowers costs and risk
    • 46. reduce paperwork
    • 47. increases data integrity
    • 48. …
    18
    Mifos: Ending Poverty One Line of Code at a Time
  • 49. Mifos Stats
    • 2004 – 11- 19: registered on SourceForge
    • 50. 2006 -11: Official Launch and Initial Release at Halifax Global Summit
    • 51. 2009 : Winner of JavaOne 2009 Duke's Choice Awardfor Best Java Technology for the Open Source Community
    • 52. 2009/2010: Google Summer of Code (2009 & 2010) student programs
    • 53. 2010 :
    • 54. 8870 Product Downloads
    • 55. 2906 volunteer hours from 25 volunteers
    • 56. Software in use by 30 MFI serving 850,000 clients.
    • 57. 2011: Grameen Foundation transitioned Mifos to a fully independent community-led project.
    About 256 database tablesaccording to SchemaSpy job on http://ci.mifos.org/schema/head/latest/
    About 120'000 Lines of Code (NCSS, Non Commenting Source Statements) according to Sonar report on http://ci.mifos.org:9000/project/index/1
    19
  • 58. 20
    Mifos Business Intelligence Suite
  • 59. 21
  • 60. 22
  • 61. Mifos – open source platform
    Flexible back-end system powering the MFI, connecting them to innovation worldwide as it is built by the community:
    MFIs
    Front-End Technologies
    • Mobile banking
    • 62. Smartcard/POS devices
    Adapted to your Needs
    • Localization
    • 63. Rapid configuration
    • 64. Local Support
    Open Mifos Architecture
    Flexible & Open APIs
    Centralized database
    Financial Modules
    Mifos
    Core
    Systems Integration
    • ERP & Accounting Software
    • 65. HR Systems
    Service Innovation
    • ATM/SWIFT Networks
    • 66. Remittances
    • 67. Insurance
    Mobile Interfaces
    Configuration
    Data Analytics
    Reporting engine
    Regulatory Compliance
    Regulatory Compliance
    • Central Banks
    • 68. Credit Bureaus
    • 69. Ratings Agencies/Regulators
    Transparency
    • Donors/Funding Sources
    • 70. Social performance measurement
    23
  • 71. # nmap Mifos Deployments
    Community:
    In Progress Deployment
    Live In Production User
  • 72. Mifos Deployments
    • More than 850'000+ client accounts managed in Mifos deployments!
    • 73. Nearly 30 MFIs in Production
    • 74. All around the world
    • 75. India – 12 MFIs
    • 76. Africa – East Africa – 8 MFIs | West Africa – 5 MFIs | So. Africa – 3 MFIs
    • 77. SE Asia , MENA
    • 78. Large
    • 79. GrameenKoota (Bangalore, India) – 450,000 clients
    • 80. Enda(Tunis, Tunisia) - 140,000 clients
    • 81. Small
    • 82. Creocore (Mali) – 26 clients, Nuru (Kenya) – 1,400 clients
    • 83. http://mifos.org/community/whos-using-mifos
    25
  • 84. $ wget …mifos…
    Learn more:
    • http://mifos.org/
    • 85. http://bit.ly/mifos-videoMifosIn Action Intro. Video
    • 86. http://mifosforge.jira.com & http://bit.ly/mifos-volunteer-bugs
    • 87. Demo: http://demo.mifos.org:8080/mifos/ (mifos/ testmifos)
    Get in touch!
    • Join our weekly developer call every Wednesday at 1630 GMT.
    • 88. Mailing List - http://groups.google.com/group/mifosdeveloper
    • 89. Twitter - @mifos – http://twitter.com/mifos
    • 90. Facebook – http://facebook.com/mifos.org
    • 91. News – http://mifos.org/community/news
    • 92. IRC - #mifos on irc.freenode.net
    26
    Mifos: Ending Poverty One Line of Code at a Time
  • 93. $ Mifos Star Contributors
    Volunteers help fight poverty in many ways across the globe. After 5 years of stewardship and funding from Grameen Foundation, Mifos is now a fully independent community-driven project. Volunteers and supporters are needed more now than ever. You could be one of them!
  • 94. $ cat CONTRIB
    • This presentation was prepared with contributions from and reviewed by:
    • 95. Edward Cable
    • 96. Ryan Whitney
    • 97. BinnyGopinath
    • 98. Keith Woodlock
    • 99. Udai Gupta
    • 100. Thank you!
    28
    Mifos: Ending Poverty One Line of Code at a Time