Microfinance represents financial niche market where technology vendors see potential to establish sustainable market presence through diversified software solutions but still the available options are incompatible with the needs of this niche industry. The current state of the microfinance market requires specialized software solution which caters for the specific microfinance requirements.
A couple of decades ago, a new global trend emerged and the traditional financial sector couldn’t respond to the needs of the development economies where borrowers used the loans for combating poverty, establish start–up businesses and help inclusion of the marginalized groups.
These borrowers struggle for financial survival and respectively did not qualify for the loans offered by the traditional banking system. Therefore microloans began exploiting the societies in the developing countries.
Through the years, the scope of operations for MFIs around the globe increased significantly and the demand of information technology that will alleviate the operations and increase efficiency emerged respectively. The lack of adequate solution and growing but unfulfilled market need is where ASPEKT sees an opportunity to focus on this niche industry.