Can you elaborate on microfinance open source (Mifos)?
Mifos is an open source core banking solution, specifically designed to meet the
information management needs of microfinance institutions (MFIs) across the
globe. MFIs have vast amounts information that needs to be analyzed constantly
to ensure that certain quality standards are maintained across operations. A
challenge presents itself in the rate at which MFIs add data to the system.
Mifos makes it possible for institutions to track information as it changes and
grows, enabling MFIs to make informed lending decisions. Mifos was developed to
address the key challenges faced by MFIs, that includeInternet bandwidth,
computer literacy of the branch staff, etc.
How does Mifos function?
Mifos is a solution available with GPL license, which MFIs can download, use and
customize (if required) at no cost. It works completely on open source
environment like Linux, tomcat, mysql, etc, which are free too. It is a thin
client browser based application with no client software installation. MFIs
would need to setup the solution on a server at the head office/data center in a
central location with Internet connectivity, and then Mifos can be accessed from
anywhere in the world from any personal computer with very basic Internet
connectivity even a dial-up. It is very easy to set up and maintain, and hence,
proves to be very cost effective.
What are the benefits of Mifos?
Mifos have light web pages and work very fast even on dial-up connections. The
user interface is very simple and the branch staff can be easily trained to
operate the software proficiently. Also, as it is a browser based application,
it can be accessed from any PC with Internet connectivity, and hence, dependence
on specific computers is ruled out. It makes easy to swap PC during any
failures, thus making PC management easy at client locations.
What is the RoI on Mifos?
Grameen Kootas investment in Mifos, Grameen Foundations open source
microfinance software, is generating a $5 mn RoI from an initial outlay of
$200,000. This investment is in line with the industry average of 1-10% for
technology expenditure, showing the remarkable value of investing in a complete
IT solution that aligns technology with both people and processes. Since
partnering with Grameen Foundation to implement Mifos, we have accelerated our
growth, and outreach of financial services to the poor.
Shilpa Shanbhag
shilpas@cybermedia.co.in