ICT Considerations for MFIsPresented by:Michael WakaheShujaa Solutions LtdNov 26th 2010
Table of Contents Shujaa Solutions Background Challenges for MFIs Solutions in Mobile & Related ICT Demo of Mifos Mobi...
Shujaa Solutions Background
Shujaa Solutions Background Software development company Specializing in mobile technologies Started late 2008 CCK app...
Challenges for MFIs
Challenges for MFIs Has a very large number of clients that are  scattered E.g. Grameen Bank, Bagladesh –  approximately...
Challenges for MFIs The ability to track the status of its portfolio in  a timely and accurate manner is often the  most ...
Challenges for MFIs Fungibility – use of borrowed money for  something else and later other funds used for  loan purpose...
Solutions in Mobile & Related ICT
Solutions in Mobile & Related ICT Numerous mobile technologies involved e.g. applications, mobile web, SMS, USSD Can con...
Solutions in Mobile & Related ICT Mobile devices can reduce number of staff  required for appraisal Instant lending via ...
Solutions in Mobile & Related ICT Mobile repayment history can also be used as credit check when borrower graduates to la...
Solutions in Mobile & Related ICT Control fungibility by directly purchasing items  for borrower instead of giving cash ...
Solutions in Mobile & Related ICT ICT can reduce CAPEX & fixed assets – some  costs pushed to borrowers e.g. handsets Ca...
Solutions in Mobile & Related ICT Asset Tracking can be enhanced using mobile Assets used as “security” for loans For e...
Solutions in Mobile & Related ICT Impact Analysis – the impact of microfinance  interventions in the community served Ca...
Solutions in Mobile & Related ICT Many forms of mobile communication can be  secured Will use hybrid of shared key & pub...
Solutions in Mobile & Related ICT Today handsets for as low as KES 3000/- (USD  $38) can use Internet communication Low ...
Demo of Mifos Mobile    Application  Copyright © Shujaa Solutions Ltd. 2010. All              Rights Reserved.
Demo of Mifos Mobile    Application  Copyright © Shujaa Solutions Ltd. 2010. All              Rights Reserved.
Demo of Mifos Mobile    Application    Copyright © Shujaa Solutions Ltd. 2010. All                Rights Reserved.
References Ledgerwood, J. (1998). Microfinance Handbook: An Institutional and   Financial Perspective. Washington D.C., U...
The End  Michael Wakahemichael@shujaa.co.ke+254 (0)20 250 9260 www.shujaa.co.ke www.shujaa.mobi
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Hivos Seminar - Dar es Salaam 2010

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Hivos, a Dutch development organization, in cooperation with IDRC, Adept Systems and Triodos Facet, is pleased to invite you to a seminar on open source Management Information Systems and ICT trends in Microfinance, on 25th and 26th November 2010 in Tanzania.

Speaker: Michael Wakahe, Director, Shujaa Solutions Ltd
Date: 25th - 26th Nov 2010
Venue: Protea Court Yard Hotel, Dar es Salaam, Tanzania

Published in: Technology, Business
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Hivos Seminar - Dar es Salaam 2010

  1. 1. ICT Considerations for MFIsPresented by:Michael WakaheShujaa Solutions LtdNov 26th 2010
  2. 2. Table of Contents Shujaa Solutions Background Challenges for MFIs Solutions in Mobile & Related ICT Demo of Mifos Mobile Application Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  3. 3. Shujaa Solutions Background
  4. 4. Shujaa Solutions Background Software development company Specializing in mobile technologies Started late 2008 CCK approved as Content Service Provider Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  5. 5. Challenges for MFIs
  6. 6. Challenges for MFIs Has a very large number of clients that are scattered E.g. Grameen Bank, Bagladesh – approximately 24,700 employees & over 7.34 million clients Employee: Client ratio: 1: 297 Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  7. 7. Challenges for MFIs The ability to track the status of its portfolio in a timely and accurate manner is often the most pressing need of an MFI Have to be financially independent asap to stop relying on donor funding Copyright © Shujaa Solutions Ltd. 2010. All rights reserved.
  8. 8. Challenges for MFIs Fungibility – use of borrowed money for something else and later other funds used for loan purpose Have a challenge of reminding clients of overdue loans due to large numbers Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  9. 9. Solutions in Mobile & Related ICT
  10. 10. Solutions in Mobile & Related ICT Numerous mobile technologies involved e.g. applications, mobile web, SMS, USSD Can connect with microfinance MIS to have 2 way transactions Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  11. 11. Solutions in Mobile & Related ICT Mobile devices can reduce number of staff required for appraisal Instant lending via automated credit check – e.g. use transactional history of Mpesa Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  12. 12. Solutions in Mobile & Related ICT Mobile repayment history can also be used as credit check when borrower graduates to large financial institutions e.g. banks Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  13. 13. Solutions in Mobile & Related ICT Control fungibility by directly purchasing items for borrower instead of giving cash Repayment of loans can again be made via mobile money transfers Repayment reminder also through mobile Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  14. 14. Solutions in Mobile & Related ICT ICT can reduce CAPEX & fixed assets – some costs pushed to borrowers e.g. handsets Can provide social intermediation services e.g. receive tips over mobile Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  15. 15. Solutions in Mobile & Related ICT Asset Tracking can be enhanced using mobile Assets used as “security” for loans For example: taking mobile photos of business items; GPS triangulation of premises Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  16. 16. Solutions in Mobile & Related ICT Impact Analysis – the impact of microfinance interventions in the community served Can be aided by mobile e.g. questionnaires on phone, credit history on mobile payments Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  17. 17. Solutions in Mobile & Related ICT Many forms of mobile communication can be secured Will use hybrid of shared key & public-private key encryption on IP traffic Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  18. 18. Solutions in Mobile & Related ICT Today handsets for as low as KES 3000/- (USD $38) can use Internet communication Low cost, at KES 5/- (USD $0.0625) per MB, 1 SMS to cost KES 0.08 cents, equivalently, 6250 SMS for 5/- Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  19. 19. Demo of Mifos Mobile Application Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  20. 20. Demo of Mifos Mobile Application Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  21. 21. Demo of Mifos Mobile Application Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  22. 22. References Ledgerwood, J. (1998). Microfinance Handbook: An Institutional and Financial Perspective. Washington D.C., USA: The International Bank for Reconstruction and Development/THE WORLD BANK http://en.wikipedia.org/wiki/Grameen_Bank Copyright © Shujaa Solutions Ltd. 2010. All Rights Reserved.
  23. 23. The End Michael Wakahemichael@shujaa.co.ke+254 (0)20 250 9260 www.shujaa.co.ke www.shujaa.mobi

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