The ability to provide financial services via digital channels is opening up new opportunities to reach populations that previously were un-served. Mobile money services are available in 60 percent of developing countries, and 16 countries now have accounts. Mobile payments enables customers to initiate remote financial transactions from their mobile phone, be it utility bill payments, fund transfer or m-commerce transactions. Instead of making payments using cash, credit card, debit card or checks, customers can use a mobile phone to pay for a wide range of products and services. This will mean lighter pockets and wallets and an opportunity for everyone not just to travel lighter but also to travel and transact smarter. Banking penetration is still poor in many parts of the world. For helping people in doing their banking related operations, MFIs have been set up which operates in a similar manner as banks, but in a smaller scale. There are many schemes are operational for the poor in the rural areas from the government, which requires payments from government to person. With the introduction of mobile Wallet solution for MFI now the process of delivering payments to those who are yet to be linked with the bank has become quite simple and easy. With mobile payment solution available on the smartphones, now beneficiaries of mobile solutions can receive payments from other people, from micro finance institutions and from government with the help of digital economy available in their smartphones. These smart mobile apps are helping greatly to the people in rural area for operating all their transactions through mobile payment solution for MFI with easy and convenience. They don’t have to travel distance cities or to the banks to avail their payment digitally from the government or any other such agency. Information Technology plays a key role in providing sustainable micro financing to the bottom of the pyramid sector of the society. Operational Efficiency and reach ability are the key factors determining the efficiency of an MFI.
Problems with the conventional systems
Human errors while entering data again and again.
Problems in tallying numbers.
Data of many indicators not reported.
Valuable time of meetings spent in correcting the data.
MFI reducing the limitations
Use of automation in collection, transferring and processing of transactions.
MIS to meet timely information needs of the management, governance and the customers.
Development of flexible financial products combining saving, lending and insurance that meet the requirement of customers and also reduce the cost of transaction.
Automation of retailing of financial services of multiple providers through single delivery point.
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