Question:

We have been working closely with a number of growing MFIs. An ongoing frustration for both them and me as the CTO has been their inability to track their activities. As they continue to expand, I see a serious need for them to invest in some sort of managment information system but am unclear which ones are the best. Can you let me know what the best MIS is for an MFI?

	Submitted by:	Economic Growth Officer
		USAID Mission

Answer:

The microfinance gateway lists five MIS systems as the “best”. These are COBIS, eMerge, CUMIS Plus, Loan Performer, and SIEM. However, the more important question is really, “What makes a good MFI MIS?” Here are some key point to consider when working with an MFI to decide which MIS is the right MIS:

• Portfolio and accounting data are linked. This will allow the MFI to assess its performance in relation to its current product base and activity.
  
  
• There are various levels of security. The accountant has different access than a teller for example. This ensures the financial privacy of both the clients and the institution are maintained.
  
  
• Useful reports are produced in a timely way. This ensures managers have the information necessary to manage and USAID has the information necessary to evaluate the progress of the institutions it supports.
  
  
• The system is up-datable. As products, services, and the size of the MFI expand and diversify, the system should be able to grow with them.
  
  
• The system does not drive the products delivered. Some systems are only able to track certain financial product lines. This may limit the capacity of the MFI to meet the demands of the market, negatively impacting its sustainability.
  
  
• There is a local service provider. Local service provider offer cheaper, faster, and more personalized service.
  
  
• The MIS is not tied to an American NGO or other TA provider. This ensures that even if ties are broken with current partners, the MFI will still be able to update and operate its MIS.

By using these requirements as a guide, you will be able to ensure that the MIS adopted by an MFI is going to be able to serve it both now and as it grows an expands.

	Answered by:	Barry Lennon
		Financial Services Team Leader
		USAID Microenterprise Development office

Related USAID Experience:
Other Related Resources:	Microfinance Gateway Software Listings. This page contains a comparative list and descriptions of 60 MIS for MFIs.
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