Microfinance : Exploring the Role of Technology

Microfinance has created access to financial services for millions of poor and low-income people around the globe. Yet, a large number of poor in developing countries still lack access to basic financial services. High transaction cost restrict the outreach of microfinance institutions (MFIS) have to constantly weigh outreach and sustainability in deciding how far and how fast to expand their operations. Information and communication technologies (ICTS) have emerged as a powerful solution to address the outreach -- sustainability dilemma that MFIS face. A host of ICT applications are already in use by banks and MFIS around the globe, while some are in the pilot stages. The applications range from the basic MIS solution to the mobile phones, ATMS, personal digital assistants (PDAS) and point-of sale (POS) technologies. This book examines the role that ICTS can play in expanding the outreach of microfinance services while at the same time enhancing their sustainability, the emerging and potential ICT applications in micro finance and the implications of ICT adoption on the convenience for clients. It present a number of MFI and country experiences of ICT adoption in microfinance