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Computerized MIS Systems for Microfinance
Regional Workshop, East Asia and the Pacific
Manila, PhilippinesShirley A. Lunde [email protected]
An Information SYSTEM for MFIs
Loan Portfolio
Accounts Payable
Report Writers
andFinancial Analysis
Tools
Security and System Administration
Savings
General Ledger / Financial Stmnts / Banking
Operating System and Development Language
The Blind Men and the Elephant
“ It was six men of
Indostan
To learning much
inclined
Who went to see the
Elephant
(Though all of them
were blind)
That each by
observation
Might satisfy his
mind. ”
MIS System
One, approaching the tusk, cried. . .
“ To me
‘tis
mighty
clear
This
wonder
of an
Elephant
Is very
like
a spear!
”
General Ledger
Another seized upon the tail. . .
Loan Portfolio
“ I see
the
Elephan
t
Is very
like
a rope!
”
Yet another felt about the knee. . .
Savings “ ‘Tis clear
enough
the Elephant
Is very like a
tree! ”
“ And so these men of Indostan
Disputed loud and long. . .
Though each was partly in the
right,
And all were in the wrong! ”
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 very wrong.
The Solution: IntegrationAll elements of the system
work together; communicate with each
other.
Accounting Applications / GL and AP
Accounting Applications [GL, AP]Optimal Chart of
Accounts Flexible, allows for growth and
multi-sector analysis Promotes financial analysisTransactions: history, balances,
audit trail Flexible financial statement generatorCentralized bank reconciliation facilityForeign currency processing
Loan Portfolio
Loan Portfolio Application
Automate loan processing cycle
Enter and validate / Approve / Disburse / Cancel / Pay / Adjust or Reschedule / Write Off / Pay OffRisk and performance
analysis Portfolio reporting and calculation of
indicators
Monitor on-lending and Internal Account / Group Fund activity
Credit Product performance analysisIntegrated socioeconomic impact database
Savings
Savings ApplicationSavings transactions
Forced Savings, with integration from Loan Portfolio
Voluntary Savings Savings-based Income /
Investments Teller OperationsSavings product
analysis
Possible Levels of Integration
Shared master files
Common Chart of Accounts file
Manual GL entries based on summary reports from subsidiary applications
Transaction-level integration
Transactions processed in one application update data throughout the system
Master files are shared, where appropriate
No integration
Most
Least
Benefits of Integrated Software
Eliminate redundant data entry, minimizing workload to:
Speed delivery of services Enhance capacity and efficiency, and
facilitate growth
Ensure data integirity among applications and enhance the quality of management information
Minimize training with a common user interfaceShare security profiles and system administration functions
General System Requirements
Lifecycle costs Software Installation and training Modifications /
Enhancements / Support
Usability / User productivityFeature set (cost/benefit)
Requirements matrix, with weighting by importance
Expectations: 90% not 100%
