Client-Focused MFI Technologies Case Study

This study aims to understand the potential use of client-focused technologies for microfinance and MFIs. It outlines various approaches that can be considered by MFIs while using client-focused technologies mainly personal digital assistants (PDAs), point-of-sale (POS) devices, and cell phones, in their daily operations. With the extensive help of case studies, and through a series of examples from different parts of the world, the study also aims to address five key questions related to the use of the client-focused technologies for microfinance purposes. These are:

• Does client-focused technology help MFIs reach scale and efficiency?;
• Were the institutions expectations of these client-focused technologies met?;
• What are the reasons for success or failure of the different business models used to deploy these client-focused technologies?;
• Do MFIs have a quantifiable return on investment from implementing these technologies?; and
• What are the technical and non-technical prerequisites that an MFI will need to consider to start using one of these technologies?

The study adds a cautionary note that as each technology implementation and each country has unique characteristics. The findings from analyzing the case studies cannot be blindly applicable to all MFIs, as other aspects might need to be taken into consideration when implementing these technologies.