Investing in Mifos: A Framework for Forecasting Return on Investment

This report describes the return on investment (ROI) framework that MFIs can use to estimate the net benefits of Mifos, an open-source platform for microfinance.

Technology solutions are expensive to acquire and maintain.MFI managers need to be able to estimate the benefits of installing a new information technology (IT) system before making a commitment to it. ROI modelling helps managers clear their doubts about technology implementation. It estimates the benefits from project investment. Accurately measuring the ROI of technology projects is important for MFIs since they have limited resources. ROI modelling can be used to:

• Evaluate whether projects are feasible;
• Determine which project among several will bring the largest return;
• Evaluate the actual value of projects after their implementation.

Mifos is built on leading technologies and gives MFIs the flexibility and capacity to scale up their client lists and loan portfolios with improved efficiency. The Grameen Foundation has guided the development of Mifos, while its affiliates and volunteers support and extend its use worldwide. Mifos should allow MFIs to centralize data, improve their operational efficiency, and bring greater predictability into planning for future needs and costs.