After discussing why technology is an important tool for advancing MFIs, participants traveled to four demonstration stations to see first-hand how these technologies work.  Below are short descriptions of these technologies. Please see the corresponding links for more detailed information.

 

G-Cash was presented by Anna Bantug-Herrera of Chemonics International.

Participants at this station learned how mobile phones are being used to send and receive cash and make payments in the Philippines. Under the RBAP-MABS Project (Rural Bankers Association of the Philippines Microenterprise Access to Banking Services), Chemonics is utilizing mobile phone technology for microfinance to significantly lower transaction costs while expanding outreach to rural areas.  The G-Cash product was launched by Globe (an m-commerce service provider in the Philippines) in 2004. It uses SMS-based technology that turns a cell phone into an electronic wallet. Globe has partnered with various companies and banks, including rural banks for money transfers and remittances with merchant stores nationwide. As of March 2006, there are approximately 1.3 million G-Cash registered users.

 

Participants learned how G-Cash works and about the reach and potential of it. They then performed a deposit transaction using cell phones and saw how quickly the money transferred.

 

To learn more about G-Cash, click here.

 

Remote Transaction Systems was presented by Sandeep Chaterjee of Cyndeo LLC

RTS was developed with the vision of creating an end-to-end data processing backbone that would link microfinance clients to the formal financial sector. RTS was developed by a consortium of public and private organizations convened by the Hewlett-Packard Company in August 2003. This team includes: Accion International, BizCredit, FINCA International, Grameen Technology Center, Freedom from Hunger, Gobal echange, PRIDE AFRICA, and Hewlett-Packard Company.

 

The RTS is composed of a hardware device, known as a point-of-sale (POS) terminal, a specialized software application, smart cards, and a RTS back-end system. All transactions that are captured on the PoS terminal are uploaded to an RTS server (simple PC). Then data then moves through a connector to the accounting systems of the appropriate MFI. The benefits to RTS include its reduced cost, reliability and simple technical requirements. 

 

Participants learned about the different components of RTS and performed a transaction process using RTS.

 

To learn more about RTS, click here.

 

PortaCredit was presented by Christian Rodriquez of ACCION

PortaCredit is an application which is designed to run on a PDA (personal digital assistant). When the PDA is equipped with PortaCredit, loan officers can input client data while in the field, complete and process applications and make loan calculations. Data is then quickly uploaded to the MFI’s centralized database which eliminates the task of reentering the data. Since its inception in 1999, PortaCredit has continued to evolve and can now accommodate multiple loan products and the new platform incorporates various credit scoring tools, further contributing to the MFIs’ efficiency.

 

MFIs who are implementing the PortaCredit program have reported significant cost-savings in non-salary operational costs. PortaCredit is now fully implemented at several Latin American MFIs.

 

Participants at this station learned about how PortaCredit works and the benefits that have already been seen and performed a transaction using a PDA equipped with PortaCredit.

 

To learn more about PortaCredit, click here.

 

The Mifos project was presented by Michael Eber of Grameen Technology Center

In response to the statistic that microfinance reaches less than five percent of individuals around the world who could benefit from financial services, the Grameen Technology Center is helping transform the management of microfinance across the sector to facilitate aggressive and sustainable growth through the creation of The Mifos project. Mifos will:

·         Provide a management information system to improve operational efficiency and control;

·         Establish data standards to improve information exchange in the industry and access to commercial sources of funding;

·         Build a global community for product development and customer support to advance the Mifos offering and stimulate adoption.

 

At this station, Michel Eber was able to show the participants Mifos software and discussed the potentials of it because it uses the open source framework which allows all MFIs to modify the system to meet their unique needs. Mifos is currently being tested in MFIs through October, 2006.

 

To learn more about The Mifos project, click here.

 

            

 

             

 

For more information on USAID’s Microfinance After Hours Seminar Series: "Expanding the Frontier: Microfinance Innovations and Strategies", click here (text-only) or to learn more or how to attend upcoming seminars, please email the Seminar Coordinator.