Funding Microfinance Technology
This short note points out that a wide range of technologies are available to help microfinance providers improve efficiency, track operations more accurately, increase transparency, and reach new customers. It argues that at the same time, however, the majority of microfinance institutions struggle to select the right technologies and get the most from their investments. The paper suggests that donors should be realistic about what technology can achieve. in addition to providing funds, donors should ensure that microfinance providers follow good investment and management principles when choosing and implementing new technologies.
The note is broken down into three sections, which try to answer the following questions:
- What technologies are used in microfinance? (this includes a look at how technology can benefit microfinance providers)
- What principles should MFIs follow when implementing technology?
- How should donors support MFIs that are using technology to improve operations?