Mifos: Ending Poverty One Line of Code at a Time<br />Humanitarian FOSS trackat the Open World ForumParis; September 23rd,...
$ ls ~/presentation/<br /><ul><li>About Microfinance, a short introduction
Impressions – a few photos from an India visit
About Mifos (briefly, more on request!)</li></ul>2<br />Mifos: Ending Poverty One Line of Code at a Time<br />
$ whoami<br /><ul><li>Volunteer for Mifos since mid 2009, time permitting(java.net / mifosforge.jira.com & Wiki migrations...
Day job as Development Manager for Eclipse-based design time modeling workbenches at TEMENOSThe Banking Software Company. ...
Lives & works in Lausanne, Switzerland.
http://vorburger.ch ● mike@vorburger.ch ● @vorburger</li></ul>3<br />Mifos: Ending Poverty One Line of Code at a Time<br />
$ file /poverty – Hello World<br />Of total world population of 6.8 billion:<br /><ul><li>880 million survive on less than...
1.4 billion survive on less than USD 1.25/day (20%)
2.6 billion survive on less than USD 2/day (40%)</li></ul>International “Poverty Line” = USD 1.25 / day <br />Millions chi...
$ man microfinance<br /><ul><li>Microfinance, a proven poverty reduction strategy, provides financial services to very low...
Smooth irregular income flows
Provide cushions for emergencies
Expand economic activities
Prof. Muhammad Yunus(Nobel Peace Price 2006) founded the Grameen Bank in the late 1970s in Bangladesh, and scaled profitab...
$ man microfinance<br /><ul><li>Microfinance Institutions (MFI) lend ~ $100-ish amounts (e.g. 12’000 INR), repaid / collec...
Microcredit customers are often women only (by MFI choice); money used for things such as bangles shop, family painting bu...
Loan Officers go out to meet clients, typically (bi)weekly to collect repayments. Customers don’t come to branch offices t...
Typically ~ 98% loan repayment (recovery) rate; e.g. Nirantara in Karnataka/India 99.6% (of 7000 clients with 20’000 Loans...
$ man microfinance<br /><ul><li>Solidarity Lending (Joint Liability model) is common, creating a bond among a Group of cli...
Products offered depend on country and respective regulations: In e.g. India today often only Loans, rarely Savings Deposi...
Typically tied to an “educational” programs: Week long Compulsory Group Training (CGT) introduction loaning; also “stories...
$ man microfinance<br /><ul><li>MFIs vary significantly in scale and reach: from small NGOs (100s of clients) to mid-size ...
Interest rates in the 20–30% range. MFIs typically borrow from traditional banks at around 8% - 12% interest (India); addi...
http://en.wikipedia.org/wiki/Flat_rate_%28finance%29
http://www.mftransparency.org/
Challenges incl. (e.g. in India) regulatory uncertainty (Maligam report), or overheating with “too many loans” by competin...
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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.

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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.
  • Transcript of "Mifos: Ending Poverty One Line of Code at a Time"

    1. 1. Mifos: Ending Poverty One Line of Code at a Time<br />Humanitarian FOSS trackat the Open World ForumParis; September 23rd, 2011<br />Michael Vorburger, for Mifos Community<br />
    2. 2. $ ls ~/presentation/<br /><ul><li>About Microfinance, a short introduction
    3. 3. Impressions – a few photos from an India visit
    4. 4. About Mifos (briefly, more on request!)</li></ul>2<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    5. 5. $ whoami<br /><ul><li>Volunteer for Mifos since mid 2009, time permitting(java.net / mifosforge.jira.com & Wiki migrations; Workspace 2.0; Executable WAR; conf’s.)
    6. 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. 7. Lives & works in Lausanne, Switzerland.
    8. 8. http://vorburger.ch ● mike@vorburger.ch ● @vorburger</li></ul>3<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    9. 9. $ file /poverty – Hello World<br />Of total world population of 6.8 billion:<br /><ul><li>880 million survive on less than USD 1/day (13%)
    10. 10. 1.4 billion survive on less than USD 1.25/day (20%)
    11. 11. 2.6 billion survive on less than USD 2/day (40%)</li></ul>International “Poverty Line” = USD 1.25 / day <br />Millions children die of hunger every year.<br />Source: World Bank Development Indicators 2008<br />http://en.wikipedia.org/wiki/Poverty#Absolute_poverty<br />http://en.wikipedia.org/wiki/Theories_of_poverty#Poverty_as_restriction_of_opportunities<br />4<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    12. 12. $ man microfinance<br /><ul><li>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. 13. Smooth irregular income flows
    14. 14. Provide cushions for emergencies
    15. 15. Expand economic activities
    16. 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)</li></ul>5<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    17. 17. $ man microfinance<br /><ul><li>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. 18. Microcredit customers are often women only (by MFI choice); money used for things such as bangles shop, family painting business, etc.
    19. 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. 20. Typically ~ 98% loan repayment (recovery) rate; e.g. Nirantara in Karnataka/India 99.6% (of 7000 clients with 20’000 Loans)</li></ul>6<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    21. 21. $ man microfinance<br /><ul><li>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. 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. 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.</li></ul>7<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    24. 24. $ man microfinance<br /><ul><li>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. 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. 26. http://en.wikipedia.org/wiki/Flat_rate_%28finance%29
    27. 27. http://www.mftransparency.org/
    28. 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)</li></ul>8<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    29. 29. … group meeting (GK)<br />
    30. 30. … group meeting (GK)<br />
    31. 31. … group meeting (GK)<br />
    32. 32. … branch of GK<br />
    33. 33. Loan Officer counting cash after returning from group meeting<br />
    34. 34. Data Entry officer (Mifos)<br />BanashankariBranch Office<br />GrameenKoota (GK)<br />Bangalore<br />India<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    35. 35. Mifos Reports (BIRT, Pentaho)<br />
    36. 36.
    37. 37.
    38. 38. Technology for Microfinance<br />Like any business, MFIs adopt technology to:<br /><ul><li>increase operational efficiency
    39. 39. scale better and faster
    40. 40. automate thousands of manual transactions
    41. 41. free up loan officers to reach further out
    42. 42. provide security and convenience
    43. 43. e.g. via mobile banking; Mifos M-Pesa interface!
    44. 44. know your customer (KYC), e.g. credit bureaus
    45. 45. lowers costs and risk
    46. 46. reduce paperwork
    47. 47. increases data integrity
    48. 48. …</li></ul>18<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    49. 49. Mifos Stats<br /><ul><li>2004 – 11- 19: registered on SourceForge
    50. 50. 2006 -11: Official Launch and Initial Release at Halifax Global Summit
    51. 51. 2009 : Winner of JavaOne 2009 Duke's Choice Awardfor Best Java Technology for the Open Source Community
    52. 52. 2009/2010: Google Summer of Code (2009 & 2010) student programs
    53. 53. 2010 :
    54. 54. 8870 Product Downloads
    55. 55. 2906 volunteer hours from 25 volunteers
    56. 56. Software in use by 30 MFI serving 850,000 clients.
    57. 57. 2011: Grameen Foundation transitioned Mifos to a fully independent community-led project.</li></ul>About 256 database tablesaccording to SchemaSpy job on http://ci.mifos.org/schema/head/latest/<br />About 120'000 Lines of Code (NCSS, Non Commenting Source Statements) according to Sonar report on http://ci.mifos.org:9000/project/index/1<br />19<br />
    58. 58. 20<br />Mifos Business Intelligence Suite<br />
    59. 59. 21<br />
    60. 60. 22<br />
    61. 61. Mifos – open source platform<br />Flexible back-end system powering the MFI, connecting them to innovation worldwide as it is built by the community:<br />MFIs<br />Front-End Technologies<br /><ul><li>Mobile banking
    62. 62. Smartcard/POS devices</li></ul>Adapted to your Needs<br /><ul><li>Localization
    63. 63. Rapid configuration
    64. 64. Local Support</li></ul>Open Mifos Architecture<br />Flexible & Open APIs<br />Centralized database <br /> Financial Modules<br />Mifos <br />Core<br />Systems Integration<br /><ul><li>ERP & Accounting Software
    65. 65. HR Systems </li></ul>Service Innovation<br /><ul><li>ATM/SWIFT Networks
    66. 66. Remittances
    67. 67. Insurance </li></ul>Mobile Interfaces<br />Configuration <br />Data Analytics<br />Reporting engine<br />Regulatory Compliance<br />Regulatory Compliance<br /><ul><li>Central Banks
    68. 68. Credit Bureaus
    69. 69. Ratings Agencies/Regulators</li></ul>Transparency<br /><ul><li>Donors/Funding Sources
    70. 70. Social performance measurement</li></ul>23<br />
    71. 71. # nmap Mifos Deployments<br />Community:<br />In Progress Deployment<br />Live In Production User<br />
    72. 72. Mifos Deployments<br /><ul><li>More than 850'000+ client accounts managed in Mifos deployments!
    73. 73. Nearly 30 MFIs in Production
    74. 74. All around the world
    75. 75. India – 12 MFIs
    76. 76. Africa – East Africa – 8 MFIs | West Africa – 5 MFIs | So. Africa – 3 MFIs
    77. 77. SE Asia , MENA
    78. 78. Large
    79. 79. GrameenKoota (Bangalore, India) – 450,000 clients
    80. 80. Enda(Tunis, Tunisia) - 140,000 clients
    81. 81. Small
    82. 82. Creocore (Mali) – 26 clients, Nuru (Kenya) – 1,400 clients
    83. 83. http://mifos.org/community/whos-using-mifos</li></ul>25<br />
    84. 84. $ wget …mifos…<br />Learn more:<br /><ul><li>http://mifos.org/
    85. 85. http://bit.ly/mifos-videoMifosIn Action Intro. Video
    86. 86. http://mifosforge.jira.com & http://bit.ly/mifos-volunteer-bugs
    87. 87. Demo: http://demo.mifos.org:8080/mifos/ (mifos/ testmifos)</li></ul>Get in touch!<br /><ul><li>Join our weekly developer call every Wednesday at 1630 GMT.
    88. 88. Mailing List - http://groups.google.com/group/mifosdeveloper
    89. 89. Twitter - @mifos – http://twitter.com/mifos
    90. 90. Facebook – http://facebook.com/mifos.org
    91. 91. News – http://mifos.org/community/news
    92. 92. IRC - #mifos on irc.freenode.net</li></ul>26<br />Mifos: Ending Poverty One Line of Code at a Time<br />
    93. 93. $ Mifos Star Contributors<br />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!<br />
    94. 94. $ cat CONTRIB<br /><ul><li>This presentation was prepared with contributions from and reviewed by:
    95. 95. Edward Cable
    96. 96. Ryan Whitney
    97. 97. BinnyGopinath
    98. 98. Keith Woodlock
    99. 99. Udai Gupta
    100. 100. Thank you!</li></ul>28<br />Mifos: Ending Poverty One Line of Code at a Time<br />
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