Posts Tagged ‘technology’
Posted on January 12, 2010 - by James
From Mobile Healthcare to Payments to Microfinance, SMS Remains ‘Tip of the Spear’…
In less than a decade, mobility has gone from a mere convenience to an absolute must-have, both in the US and globally. In the US, mobility is most commonly used for social connections, and is gaining momentum for high value transactions and mobile services such as banking, healthcare, government, and more, albeit on a slower scale, especially when compared to other, developing regions around the world.
In Afghanistan, small business owners absolutely depend on mobility to bank; in South Africa, people use their mobile phone to purchase insurance; in India, farmers are using SMS to track crop prices; in Iraq people are “listening” in to President Obama’s historic speeches. These are just a few examples, and testimony to the wide selection of life-changing and awe-inspiring necessities using the simplicity and mass ubiquity of mobile text messaging, especially when looking at underdeveloped and developing regions.
Posted on December 17, 2009 - by James
Grameen: Using Technology to Advance the Fight against Global Poverty
Microfinance has grown tremendously in the last decade, moving from little NGOs working in tiny villages to large institutions providing loans, savings accounts and insurance to hundreds of thousands of poor women and men. Grameen Bank in Bangladesh alone has more than seven million clients, while institutions like Grameen Koota in India serve more than 300,000. In fact, according to the Microcredit Summit Campaign there are more than 3,300 microfinance institutions (MFIs) providing services to more than 155 million poor people and their families globally.
As these MFIs have grown, so has their need for technology to help them manage their overall business operations. Technology plays a key role in Grameen Foundation’s mission to alleviate poverty. From equipping MFIs with the capacity to manage technology to building and delivering industry-wide solutions like the Mifos™ platform, our goal is to advance the use of technology so all MFIs can better serve more of the world’s poor.
We have seen a promising shift in technology use among MFIs over the past five years. Surveys by theConsultative Group to Assist the Poor (CGAP) show that the share of MFIs leveraging technology to manage their operations grew from less than 50 percent in 2004 to roughly 72 percent in 2009. Still, we believe the spread of technology can be accelerated in two significant ways…
Posted on July 1, 2009 - by Gavin
Google to bring free text information to Africa…
Strategy Eye um4syjrzwb
Google is partnering with technology and microfinance charity the Grameen Foundation to provide an SMS texting service designed to help impoverished Ugandans gain access to online information. Google SMS will allow mobile owners to text free requests for information such as weather forecasts and sexual health advice.
The service will also provide a virtual marketplace and be accompanied by Google SMS Tips, which the company says provides a search-like experience through SMS.
Fixed-line telephones and internet connections are few and far between in most of Africa, but the continent has comparatively high mobile phone penetration rates. The service will allow Google to reach almost 9m Ugandan mobile phone users who are unlikely to come into contact with the brand in any other way. If the project is a success, it is likely Google will roll out the scheme to other developing nations.
The service will only be available on the MTN Uganda network. Company spokesman Noel Meier says: “We are hoping to reach people in rural and disadvantaged communities while we build up a new line of business for the company.” (more…)
Posted on June 25, 2009 - by Gavin
FINO: Bank to the poor…
Business Rediff
Thirty-seven-year-old Sivan Pandiyan had to run from pillar to
post for over seven to eight months to get a meagre Rs 5,000 as
loan from a bank to carry out the maintenance and repair work of
his taxi.
Tested to his limits, Pandiyan finally turned to the Financial
Information Network & Operations Ltd, which came to his
rescue by sanctioning the amount without any hassle.
Thanks to FINO, Pandiyan has been able to repair his taxi to eke
out a living earning Rs 500-1,000 per day.
For many like Pandiyan, FINO has emerged as the helping hand
providing much-needed financial assistance instantaneously,
making it an attractive alternative to banks.
Posted on June 23, 2009 - by Gavin
IFC to provide MTN $75m…
TMC Net
KABUL 23 June 2009 ,(Asia Pulse Data Source via
COMTEX) — A World Bank Group member is providing a $65 million
loan and $10 million in equity to MTN-Afghanistan to support the
expansion of the company’s mobile telephone network and meet
growing demand for affordable mobile phone services.
MTN Afghanistan is owned by MTN Dubai Ltd, part of the
South Africa-based group, a long time partner of the World Bank
Group member International Finance Corporation (IFC). It is the
second-largest mobile telephone operator in Afghanistan with more
than 2.5 million subscribers.
According to the World Bank’s office in Kabul, the
expansion is aimed in particular at low-income populations. “MTN
Group places high importance on its operation in Afghanistan,”
said James Ramadan, MTN Group’s regional vice-president for
Middle East and North Africa.
He added: “We have invested significantly in MTN
Afghanistan and will continue to do so in the future. IFC is
providing long-term funding, which is a great vote of confidence
for this frontier market.
“It will enable us to serve the people of Afghanistan by
enhancing network coverage and expanding high-quality services to
a greater number of customers,” Ramadan was quoted as saying in a
press release from the World Bank office.
IFC Director for Global Information and Communication
Technologies Moshen Khalil said: “Mobile telecommunications
enable access to knowledge and services, innovation across
sectors, and more efficiency in the delivery of government and
business services.” He hoped the investment would encourage other
investors to support the telecommunication sector, and more
broadly, economic development and growth in the strife-torn
country.
IFC investment portfolio in Afghanistan totals $95 million in
five companies, including investments in two small and
microfinance institutions. Its advisory activities complement its
investments through capacity-building initiatives with these two
institutions, and by helping the government establish regulatory
frameworks for leasing and housing-sector lending.
Source: "http://www.tmcnet.com/usubmit/2009/06/23/4238639.htm">http://www.tmcnet.com/usubmit/2009/06/23/4238639.htm”>http://www.tmcnet.com/usubmit/2009/06/23/4238639.htm
Posted on June 18, 2009 - by Gavin
MICROCAPITAL STORY: Microloans In China – Recent Experiences In The Ningxia Province…
Microcapital
In a Bloomberg report date dated 16 June 2009, reporter Dune Lawrence highlights the impact of microloans in rural China. By way of illustration, Wang Shulian started a business producing mineral powder that is used for plastering by obtaining microloans equivalent to USD 146 from an organization that supports rural women in the Ningxia province. Her monthly income has grown from nothing to about USD 1460 in just over 8 years.
Microloans for farmers and entrepreneurs like Wang may be a more sustainable path to rural consumption and growth although such initiatives do not grab the headlines much like China’s recent 4 trillion yuan (USD 585 billion) stimulus plan to build housing and infrastructure. Many commentators agree that getting funds through to the lowest levels of the economy is critical for the long-term development of China. As many as 30 million migrant workers from China’s cities have moved back to rural areas in search of jobs since the global slowdown began. Whilst jobs may be found, rural incomes on average work out to be less than a third of urban income levels. Accordingly, the government believes that the provision of credit to fuel growth in rural China is a key priority.
Some of Wang’s neighbors also obtained equivalent loans to raise sheep, thereby expanding their village economy beyond subsistence farming. More families now make at least several thousand yuan a year. Wang’s lender is Ningxia Huimin Microfinance Co. (Ningxia) which does not currently supply data to the MIX Market portal, an online network which provides financial and other information on over 600 MFIs around the world. Accordingly, updated financial data about Ningxia is not currently available. (more…)
Posted on June 17, 2009 - by Gavin
New payment system benefits microfinance clients & improves efficiency…
Reuters
World Vision Georgia’s microfinance organisation CREDO has launched a new type of payment system for clients in Georgia, enabling them to make loan payments at no charge via Payment Machines called ‘PayBox’, located in shops, streets and villages across the country. Designed to increase convenience and save time for clients, the new system also means significant cost savings for CREDO, as well as increased cash flow and efficiency of its operations.
This newly adapted method of payment is already in use in Georgia with people using these machines to pay mobile phone bills, Internet and utility expenses 24 hours, seven days a week.
It means easier payment, because people are no longer required to travel great distances to make payments and are not confined to bank working hours.
‘PayBox Technology means savings for clients and CREDO. For clients it is time saving with repayment points closer and they can repay at their convenience. For CREDO it means cost savings; repayment data from PayBox will be automatically imported to our loan tracking system’, emphasized Ljiljana Spasojevic, CEO of AzerCredit Azerbaijan and Credo Georgia. (more…)
Posted on June 12, 2009 - by Gavin
WB grants $250Mln for poverty alleviation in Pakistan…
Pakistan Times
ISLAMABAD: With track record and performance of Pakistan Poverty Alleviation Fund, the World Bank’s Board of Directors has approved US $250 million for poverty reduction project (PPAF-III) for next five years.
Speaking to media here, Kamal Hyat, CEO/MD of PPAF highlighted the fact that the World bank funding is based on the consideration PPAF’s output, lowest administrative cost, effectiveness of out-comes and impact on the poorest at the grassroots level.
Whereas PPAF-I (1999-2004) focused on growth and PPAF-II (2005-09) went to national scale, the thrust of PPAF-III (2009-2013) will be on integration and depth in terms of scope and activities. It will capitalize on its achievements of last ten years with respect to empowering poor people with increased incomes, improved productive capacity, quality of life and better access to services to achieve sustainable livelihoods and reduce poverty.
It will increase its focus on inclusion of poor people – including women, youth and ultra-poor households – in community organizations and strengthen their participation in all community decision-making pro-cesses. PPAF-ITI would focus on five key areas of social mobilization & institutional building, livelihood enhancement and protection, micro credit access, basic services and infrastructure and project implementation support. (more…)
Posted on June 10, 2009 - by Gavin
Agile Financial Technologies adds Microfinance capabilities to its product stack…
AME Info
Agile Financial Technologies (Agile FT), a leading provider of software and services to the insurance, banking and financial services sector has announced the signing of an agreement with India based Theme Technologies that would enable Agile FT to acquire Theme’s Micro-Finance, Micro-Credit and Credit Management product stack, in an earn-out mechanism over three years.
The products are compliant with CGAP standards. The products will be rebranded and launched as Agilis Universal Microfinance and will enable Agile FT offer Agilis UMF as both a software platform and as an outsourced service to Micro Finance Institutions (MFIs) in emerging markets.
The immediate thrust will be in Africa, Middle Eastern markets like Saudi Arabia and Egypt and South & S.E. Asian markets including Indonesia, Malaysia, Philippines and Vietnam. (more…)
Posted on June 9, 2009 - by Gavin
MICROCAPITAL STORY: Unitus Announces Ganesh Rengaswamy as India Country Director and Newest Member of Global Senior Management Team…
Microcapital
Ganesh Rengaswamy has been named India Country Director for Unitus, Inc., an international non-profit organization that partners with early-stage microfinance institutions (MFIs). Mr. Rengaswamy will head the organization’s India microfinance initiatives including managing the team of consultants, advising Unitus microfinance partners, and serving on the global senior management team.
Mr. Rengaswamy holds a Bachelor’s degree in engineering from IT-BHU/IIT-BHU (India), a Master in Business Administration from Harvard Business School, and a graduate degree in finance and systems strategy from IIM-Calcutta. Before joining Unitus, Rengaswamy was co-founder of Travelguru.com, a travel website for hotels and vacations in India and South Asia, and launched India investments for Greylock Partners. Prior to Greylock he worked for Infosys Technologies, managing mission-critical engagements for Fortune 500 clients and leading USD 100 million customer acquisition programs. Before Infosys, he managed a private investment fund.
Established in 2000 and based in Seattle, Washington (US), Unitus Inc. connects partner MFIs with business expertise, capital investments, and innovative tools and services. According to its website, Unitus works with 24 microfinance partners in India, Southeast Asia, East Africa, South America, and Mexico, and has served more than 8 million families in the last seven years. According the company’s most recent annual report, as of December 2007 Unitus’ total assets were USD 15.1 million. (more…)
Posted on June 2, 2009 - by Gavin
development: The price of micro-finance…
Daily Times
The high intermediation costs for a typical microfinance provider seem justifiable. Microfinance providers can however use other existing infrastructures or technologies to significantly lessen these operational costs
Since the creation of the Grameen Bank in Bangladesh, the use of micro-finance to alleviate poverty has gained recognition and support around the developing world, including South Asia. Besides providing credit, institutions have been developed to provide a range of other services for the poor, such as savings, home loans and even insurance.
However, the fact that micro-finance institutions end up charging much higher interest rates than commercial banks has led to much criticism concerning their alleged rent-seeking tendencies. To be fair, however, the role and compulsions of micro-finance merit a closer look, including their need to charge high interest rates, before concurring with such an unflattering conclusion.
Before focusing specifically on the issue of interest rates, however, let us contextualise the micro-finance industry in Pakistan. The financial sector in Pakistan as a whole has overall grown steadily in the recent past. Yet the sector’s outreach has largely been focused on a niche market in mostly urban areas, where it caters to the medium-high income group and the corporate sector. (more…)
Posted on May 13, 2009 - by Gavin
Enda Inter-Arabe goes live on Mifos Information Management platform…
BEIRUT, LEBANON
Tunisian microfinance pioneer invests in technology to accelerate growth.
Grameen-Jameel Pan-Arab Microfinance Limited and Grameen Foundation today announced the first Arab microfinance institution (MFI) to go live on the Mifos open source Management Information System (MIS) platform – Enda inter-arabe (enda) in Tunisia.
One of the Arab Region’s pioneering MFIs, enda selected Mifos, a highly flexible, cost-effective technology platform specifically designed for microfinance, to help drive and sustain its outreach, innovation and growth. Enda expects that its investment in Mifos, the open source initiative developed by Grameen Foundation and launched in the Arab World by Grameen-Jameel, will assist it in managing its high growth from the current 100,000+ poor clients across Tunisia to its target of 300,000 by end of 2012.
The announcement was made at the 2009 Sanabel Microfinance Conference, the largest gathering of microfinance practitioners and leading stakeholders in the Middle East and North Africa. (more…)
Posted on April 29, 2009 - by Gavin
Grameen Foundation honors Marshall Saunders…
The Asian Banker
Grameen Foundation, a global microfinance and technology organization, has announced Marshall Saunders as its 2009 Humanitarian Award recipient. Saunders, a philanthropist and microfinance practitioner, is being recognized for his two decades of advocacy and support for global microfinance initiatives, particularly in Mexico, Honduras, and India. He was honored at a ceremony in San Diego on April 24.
After reading about microfinance in 1991, Saunders visited Tijuana, Mexico, where he met poor women who inspired him with their resilience, optimism and business savvy in the face of grinding poverty. That encounter with microfinance clients so close to his home in San Diego sparked his passion and commitment to fighting global poverty. He was an early supporter of microfinance institutions CASHPOR and Grama Vidiyal in India and FINCA Village Banks in eight Latin American countries. He has also been a tireless advocate for RESULTS San Diego where he led efforts to raise awareness and support for fighting poverty and hunger.
Saunders was also one of Grameen Foundation’s earliest allies when it was launched in 1997. “Marshall has spent the last two decades excelling in four roles—advocate, practitioner, philanthropist and fund-raiser—that were central to building the microfinance movement,” said Alex Counts, president of Grameen Foundation. “His modest approach and tendency to shine the light on others have been hallmarks of his work, and his legacy will be one of selfless contribution and concrete results.” (more…)
Posted on April 17, 2009 - by Gavin
And Finance For All…
Business Standard
When you look at the numbers put out by Nabard on the financing of Self Help Groups (SHGs), or by banks using moderately-priced mobile phone solutions (Rs 20,000 for the full kit including a scanner to take biometric details) to provide rural banking, you’re convinced the goal of financial inclusion isn’t too far away. According to Zero-Mass Foundation which provides these solutions, nearly 25,000 new customers are added by it on a daily basis.
The way it works is that, instead of setting up an expensive rural branch, a bank just appoints a ‘banking correspondent’ (the kirana shop owner, for instance) who uses a Rs 20,000 ‘near field communication’ phone/a scanner/a thermal printer to get the details of a customer—the phone connects wirelessly to the bank’s server which then stores all the details of the customer.
So, instead of spending Rs 3-4 lakh to set up a rural branch, the bank can do this for as little as Rs 20,000. Several bank managers I’ve spoken to say they’re now in a position to break even on rural banking. The millions of smart cards being issued by different branches of the government, from the health ministry to the rural employment agencies, also send out the same signal of financial inclusion working. Leading telecom firms like Bharti Airtel, similarly, are working on low-cost means of transferring money using their mobile phone networks.
Talk to Vikram Akula, the poster-boy of microfinance, and you come away with the same message. In another year or two, according to Akula, he’ll have more customers than even the Grameen Bank of Bangladesh. Speak to the ICICI Foundation’s Nachiket Mor, however, and you get a different story. (more…)
Posted on April 2, 2009 - by Gavin
MICRO finance meets small producers in Sri lanka…
Daily Mirror
A Fair Trade Project for Organic Cocoa
The counatry’s first-of-its-kind Cocoa Processing Centre was established in the rural village of Ulpotha in Matale recently, under Etimos Lanka (Pvt) Ltd’s innovative project “Micro Finance Meets Small Producers In Sri Lanka”.
Etimos Lanka (Pvt) Ltd., a BOI approved company which began operations in 2007, was created to facilitate the services offered by Consorzio Etimos s.c., an Italian based financial consortium that supports and sustains micro businesses and micro financing programs in developing countries across the world. Consorzio Etimos s.c., which has a strong presence in Asia, Africa, South America and Eastern Europe came to the country subsequent to the Tsunami in 2004 and supported affected families to get back to their livelihoods through micro financing, thanks to the support of Dipartimento Italiano della Protezione Civile (Italian Civil Protection).
Etimos Lanka (Pvt) Ltd., was founded to continue the activities in Sri Lanka in strengthening the capacity of Microfinance institutions and co-operatives of producers. The company engages in loan monitoring, appraising of new loans, developing partnerships with other stakeholders, expanding the reach of micro finance among small producers and identifying investment opportunities. (more…)
Posted on April 1, 2009 - by Gavin
Nigeria: Royal Exchange Operates Microfinance Bank…
All Africa.com
Royal Exchange Assurance Nigeria Plc has been granted approval-in-principle by the Central Bank of Nigeria (CBN) to operate a microfinance bank in the country, a move that is expected to deepen access to financial services by the informal and under-banked segments of the economy.
Having satisfied all the statutory requirements for the opening of a microfinance bank, Royal Exchange was granted approval by the CBN recently and is currently making elaborate preparations towards a commencement of operations in the next few months.
The new venture, the first by an insurance company in the country, says Allan Walmsley, the company’s Group Managing Director, is in line with the company’s mission of evolving into one of the leading financial services firms in the world over the next few years.
According to Walmsley, the vision of the Royal Exchange Group is to become a world class operator by 2012. “That vision has seen us strategically restructure our operations while a comprehensive and integrated rebranding project also is currently underway.” (more…)
Posted on March 23, 2009 - by Gavin
‘Global Meltdown Will Affect Nigerian Banks’…
The Tide Online
A financial expert and Head of Post-Graduate Unit of the Faculty of Management Science in the Rivers State University of Science and Technology, Dr. Adolphus Toby has said the global financial meltdown would affect Nigerian banks contrary to Central Bank projections.
Dr. Toby, who made the observation in an exclusive chat with The Tide, said the financial crisis would affect downside risks’ because of the foreign credits in most of the banks and those in the Stock Exchange.
Though the effect would be minimal, Dr. Toby asserted that the credit squeeze from foreign investors is bound to expose local banks to minimal shocks.
According to him, “most of the shares funded with bank loans are yet to be repaid because a lot of stock-broking firms recorded great loss due to the crash”.
Dr. Toby recalled that already the Central Bank had identified about N840 billion debt of loan yet to be repaid by the banks noting that this might worsen the situation. (more…)
Posted on March 18, 2009 - by Gavin
Woman! Thou Are Loosed from Poverty…
Thisday Online
One of the several developmental challenges facing the southern Kaduna people in Kaduna State is poverty reduction. Ironically, this seems to be receiving the greatest attention. There is still high level of poverty in the region, which has defied several interventions from groups and individuals through different schemes and policies.
Apart from poverty, lack of jobs, income and infrastructure, including safe housing have also contributed to the poor health sector in the area as many residents do not have access to affordable and good health care facilities or services. The medical situation has not been helped by rural urban migration that has led to the brain drain of many professionals to the urban areas to seek better employment which has further compounded the poverty level in the area.
The high level of poverty in the north which includes Kaduna State, where over 70 per cent of its citizen live on less than a dollar a day was succinctly captured by the Governor of the Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo when he described poverty, during a function in Kaduna, as a northern phenomenon, to the chagrin of leaders in the region.
He said the high and persistent level of poverty was a result of the northern elite who have not done much to improve the environment, noting that the widening gap between the north and the south in terms of poverty seem to be increasing. He further revealed that there is no state in the north with less than 60 per cent poverty, while some states in the north-west geopolitical zone even have about 90 per cent poverty level. According to him, both the north-central and the north-east geo-political zones are better than the north-west in terms of poverty level. (more…)
Posted on March 18, 2009 - by Gavin
MICROCAPITAL STORY: Challenges to Regulation of Mobile Transaction Services, E-Money, and other Branchless Banking Technologies…
Microcapital
In March 2007, when Kenyan cellphone service provider Safaricom launched its mobile payment service M-Pesa (‘M’ for mobile; ‘Pesa’ meaning money in Swahili), it predicted the service would attract 450 thousand customers by January 2008. The service caught on, and fast. When January 2008 rolled around, M-Pesa had more than doubled its goal, registering more than 1 million users in ten months. People began using M-Pesa credits to pay for everything from well water to cab fare. According to Wired magazine, almost a third of Kenya’s population now pays their electricity bills via mobile device.
M-Pesa has now registered over 5 million users, and continues to register 10 thousand more each day. As discussed in this MicroCapital article, many banks and microfinance institutions (MFIs), such as Equity Bank in Kenya, have begun to adopt cellphone cash-transfer services as a way to minimize administrative costs and penetrate markets otherwise unreachable by traditional banking.
Mobile transaction services, e-money, and other branchless banking technologies have also flourished in a number of developing nations beyond Kenya, most notably Brazil, India, Peru, the Philippines, South Africa, Russia, and Colombia. However, where the rapid growth of branchless banking has sparked the imagination of many, others’ optimism is shadowed by apprehension and concern that inadequate regulation in the nascent industry may place customers’ already vulnerable finances at risk. (more…)
Posted on March 9, 2009 - by Gavin
How technology built the microfinance industry…
Computer World.com
March 9, 2009 (Computerworld) Bhalchander Vishwanath plans to operate in the global financial markets, and for a mere $5,000 cash investment, he has a pretty good shot.
Vishwanath is the founder and CEO of United Prosperity, which plans to raise money from individuals to guarantee the microcredit loans banks make to impoverished entrepreneurs. Contributors will make pledges, and they’ll get their money back when entrepreneurs repay their loans.
As one can imagine, there’s not a lot of funding available for a start-up nonprofit that’s helping to serve the poor. So Vishwanath and executives at similar organizations have to make every penny count. They do that by using technology to minimize costs while maximizing reach.
Not long ago, this business model would have been impossible. Now, though, it’s clear that technology has built a new sector within the world of microfinance — and it’s proving that small budgets can yield big gains with the help of high technology. (more…)
The MiFi Report
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