BWTP Network Bulletins & Publications

April 2011 Issue

Getting Beyond the 'Crisis' - Exploring Practitioner Perspectives on the Critique of Microfinance

Nina Nayar & Jamie Bedson

The article is based on the views of BWTP Network members, who provide a practitioner perspective on the current issues in the microfinance industry, in particular the recent ‘crisis’ reported by the media in India and Bangladesh which has led to concerns about the future of the industry. The views expressed in this article are those of the authors and are supported by contributions from members of the BWTP Network who have provided their perspectives through an online survey and interviews.

This article explores recent criticisms of the microfinance industry drawing on the opinion of members of the Banking with the Poor (BWTP) Network who are primarily practitioners. The article begins with a contextualisation of the microfinance industry including the diversity of stakeholders, the different development approaches and delivery models, and the broadened scope which goes beyond the provision of small loans, to include a range of credit products, deposit facilities, money transfers and insurance products, as well as the provision of non-financial services including enterprise development and social development programs.

June 2011 Issue

MIS Usage at MFIs: Pan-India Study

Arjun Kashyap

Abstract

From awareness stems action

The present paper studies the progress of Management Information Systems (MIS) usage amongst Indian Microfinance Institutions (MFIs) since a previous survey (conducted in October 2009), which had uncovered a low understanding of MIS. Significantly, the study found that MFIs are now not only well aware, but also enthusiastic about MIS, and investing in line with their operating budgets, with plans of increasing their expenditure on the systems even further.

The study found that while MFIs lauded their MIS’ ability to produce myriad reports at the click of a button, they complained about the ever-changing reporting requirements (with investors, donors, and regulators constantly asking for different sets of reports), which made the MIS to underperform. This suggests that there is an urgent need for the standardisation of reporting requirements, something that currently does not exist within the industry.

The other worry of the MFIs is the cost, and the perceived lack of an affordable product that can satisfactorily serve their needs.

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