Solution impact on microfinance industry
For many years, microfinance industry has been attracting more and more attention of the general public, development agencies, investors, donors, policy makers and other stakeholders. In the past 20 years the industry grew rapidly, in terms of number of new clients outreach and loan portfolio.
Many MFIs that started as a small microfinance project grew very fast taking advantage of the huge market potential, reaching poor population that doesn’t have an access to finance from other financial institutions. ASPEKT identified cases where MFIs with excellent performance and development had experienced business downturns, failures, frauds and other crisis which deserves special attention and analysis. In most of the cases the main reason behind these scenarios was lack of adequate, reliable and quality MIS, including internal control systems.
The lack of quality data processing, monitoring and control over the business growth has created an unrealistic picture about MFI’s performance and financial stability. In addition, due to the poor MIS, the vulnerability of MFIs on frauds and sudden credit defaults became very high, to the extent that it can drastically affect MFI’s existence and industry reputation.
Applying a strong and reliable MIS for growth-oriented microfinance institutions is a key to successful and sustainable development. It’s a long term investment and requires systematic analyses and approach. The purpose of quality MIS is to provide efficiency in the business process, mitigate risk management and operation control. It’s the second most valuable asset (after the personnel) that leads MFI in achieving its social mission in a sustainable and efficient way.
The above-mentioned assumption and facts are the basis of Aspekt Microfinance Software, which considers the main needs and requirements of MFI management and front staff, anticipates the dynamic and diverse business operations of MFIs worldwide.
The software is designed and structured to meet different MFIs needs, understanding that MFIs differs from banks and other financial institutions, in a way that social and impact data on their clients are as important as financial records.
Aspekt Microfinance Software is developed on the basis of 4 main objectives:
Integrating all business processes into one system
Advanced controlling mechanisms to minimize the risks of errors and frauds
Excellence in responsiveness and post-implementation support to meet future client demands
Flexible reporting and data collection platform to meet MFI requirements and quality support to the management decision-making processes