Hivos, a Dutch development organization, in cooperation with IDRC, Adept Systems and Triodos Facet, is pleased to invite you to a seminar on open source Management Information Systems and ICT trends in Microfinance, on 25th and 26th November 2010 in Tanzania. Speaker: Michael Wakahe, Director, Shujaa Solutions Ltd Date: 25th - 26th Nov 2010 Venue: Protea Court Yard Hotel, Dar es Salaam, Tanzania

1. ICT Considerations for MFIs
Presented by:
Michael Wakahe
Shujaa Solutions Ltd
Nov 26th 2010

2. Table of Contents
 Shujaa Solutions Background
 Challenges for MFIs
 Solutions in Mobile & Related ICT
 Demo of Mifos Mobile Application
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

3. Shujaa Solutions Background

4. Shujaa Solutions Background
 Software development company
 Specializing in mobile technologies
 Started late 2008
 CCK approved as Content Service Provider
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

5. Challenges for MFIs

6. Challenges for MFIs
 Has a very large number of clients that are
scattered
 E.g. Grameen Bank, Bagladesh –
approximately 24,700 employees & over 7.34
million clients
 Employee: Client ratio: 1: 297
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

7. Challenges for MFIs
 The ability to track the status of its portfolio in
a timely and accurate manner is often the
most pressing need of an MFI
 Have to be financially independent asap to
stop relying on donor funding
Copyright © Shujaa Solutions Ltd. 2010. All
rights reserved.

8. Challenges for MFIs
 Fungibility – use of borrowed money for
something else and later other funds used for
loan purpose
 Have a challenge of reminding clients of
overdue loans due to large numbers
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Rights Reserved.

9. Solutions in Mobile & Related ICT

10. Solutions in Mobile & Related ICT
 Numerous mobile technologies involved e.g.
applications, mobile web, SMS, USSD
 Can connect with microfinance MIS to have 2
way transactions
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

11. Solutions in Mobile & Related ICT
 Mobile devices can reduce number of staff
required for appraisal
 Instant lending via automated credit check –
e.g. use transactional history of Mpesa
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

12. Solutions in Mobile & Related ICT
 Mobile repayment history can also be used as
credit check when borrower graduates to
large financial institutions e.g. banks
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

13. Solutions in Mobile & Related ICT
 Control fungibility by directly purchasing items
for borrower instead of giving cash
 Repayment of loans can again be made via
mobile money transfers
 Repayment reminder also through mobile
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

14. Solutions in Mobile & Related ICT
 ICT can reduce CAPEX & fixed assets – some
costs pushed to borrowers e.g. handsets
 Can provide social intermediation services e.g.
receive tips over mobile
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

15. Solutions in Mobile & Related ICT
 Asset Tracking can be enhanced using mobile
 Assets used as “security” for loans
 For example: taking mobile photos of business
items; GPS triangulation of premises
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

16. Solutions in Mobile & Related ICT
 Impact Analysis – the impact of microfinance
interventions in the community served
 Can be aided by mobile e.g. questionnaires on
phone, credit history on mobile payments
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

17. Solutions in Mobile & Related ICT
 Many forms of mobile communication can be
secured
 Will use hybrid of shared key & public-private
key encryption on IP traffic
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

18. Solutions in Mobile & Related ICT
 Today handsets for as low as KES 3000/- (USD
$38) can use Internet communication
 Low cost, at KES 5/- (USD $0.0625) per MB, 1
SMS to cost KES 0.08 cents, equivalently, 6250
SMS for 5/-
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

19. Demo of Mifos Mobile
Application
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

20. Demo of Mifos Mobile
Application
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

21. Demo of Mifos Mobile
Application
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

22. References
 Ledgerwood, J. (1998). Microfinance Handbook: An Institutional and
Financial Perspective. Washington D.C., USA: The International Bank for
Reconstruction and Development/THE WORLD BANK
 http://en.wikipedia.org/wiki/Grameen_Bank
Copyright © Shujaa Solutions Ltd. 2010. All
Rights Reserved.

23. The End
Michael Wakahe
michael@shujaa.co.ke
+254 (0)20 250 9260
www.shujaa.co.ke
www.shujaa.mobi