This document discusses computerized management information systems (MIS) for microfinance institutions. It describes the key components of an integrated MIS including loan portfolio, savings accounts, general ledger/financial statements, and security administration. Integrating all elements allows them to work together and communicate to ensure accurate data and efficient operations. The benefits of an integrated software system include improved data quality, reduced data entry workload, and easier administration. General requirements for an MIS system include managing lifecycle costs, usability, required feature set, and meeting the majority of needs.

1. Computerized MIS
Systems
for Microfinance
Regional Workshop,
East Asia and the Pacific
Manila, Philippines
Shirley A. Lunde salunde@us

2. An Information
SYSTEM for MFIs
Savings
Loan Portfolio Report
Writers
and
Accounts Payable
Financial
Analysis
General Ledger / Financial Stmnts / BankingTools
Security and System Administration
Operating System and Development Language

3. The Blind Men and the
Elephant
“ It was six men of
Indostan
MIS
To learning much
System
inclined
Who went to see the
Elephant
(Though all of them were
blind)

4. One, approaching the
tusk, cried. . .
“ To me
„tis
General
mighty
Ledger
clear
This
wonder
of an

5. Another seized upon the
tail. . .
“ I see
Loan
Portfolio the
Elephant
Is very
like
a rope! ”

6. Yet another felt about
the knee. . .
Savings
“ „Tis clear
enough
the Elephant
Is very like a
tree! ”

7. The Moral of the Story:
You can‟t draw accurate conclusions
based on limited information. Here,
each man‟s conclusion was correct,
based on the information available. Yet
his understanding of the whole was
“ And so these men of Indostan
very wrong.
Disputed loud and long. . .
Though each was partly in the right,
And all were in the wrong! ”

8. The Solution:
Integration
All elements of the system
work together;
communicate with each other.

9. g
Applicatio
ns /
GL and
AP

10. Accounting
Applications [GL, AP]
Optimal Chart of Accounts
Flexible, allows for growth and multi-
sector analysis
Promotes financial analysis
Transactions: history, balances,
audit trail
Flexible financial
statement generator
Centralized bank
reconciliation facility
Foreign currency
processing

11. Loan
Portfoli
o

12. Loan Portfolio
Application
Automate loan processing
cycle
Enter and validate / Approve / Disburse /
Cancel / Pay / Adjust or Reschedule /
Risk and /performance analysis
Write Off Pay Off
Portfolio reporting and calculation of
indicators
Monitor on-lending and Internal Account /
Group Fund activity
Integrated socioeconomic
Credit Product performance analysis
impact database

13. Saving
s

14. Savings Application
Savings transactions
Forced Savings, with integration from
Loan Portfolio
Voluntary Savings
Savings-based Income / Investments
Teller Operations
Savings product
analysis

15. Possible Levels of
Integration
Most
Transaction-level
integration
Transactions processed in one
application
update data throughout the
Shared master files
system
Master files are shared, where
Common Chart of
appropriate
Accounts file
Manual GL entries based
on summary
Least
Noapplications subsidiary
reports from
integration

16. Benefits of Integrated
Software
Ensure data integirity among
applications and
enhance the quality of
Eliminate redundant data entry,
management information
minimizing
workload to:
Speed delivery of services
Enhance capacity and efficiency, and
Minimizegrowth
facilitate training with a common
user interface
Share security profiles
and system
administration functions

17. General System
Requirements
Lifecycle costs
Software
Installation and training
Modifications / Enhancements
/ Support
Usability / User
productivity
Feature set (cost/benefit)
Requirements matrix, with weighting
by importance
Expectations: 90% not 100%