PROGRAMS / Information Technology
Around the world, the use of information technology has proven to greatly enhance the efficiency of microfinance programs. PlaNet Finance aims to transform rural and urban microfinance institutions into ICT "centers of excellence," enabling them to harness the power of IT.
How can technology benefit the poor?
PlaNet Finance China uses IT and communication technologies to develop efficient microfinance organisations and to facilitate exchange between the microfinance community and policy makers. PlaNet Finance has donated computers to local MFIs, created simple websites for MFIs, conducted computer literacy training, and coached MFIs through the process of implementing computerized loan-tracking systems.
With greater efficiency and transparency, microfinance organisations can then provide more affordable loans to benefit the poor. Additionally, with increased access to information (via the Internet and other communications), barefoot bankers are better able to deliver not only credit, but also information, to their beneficiaries.
In 2004, PlaNet Finance conducted a "PC Giveaway for MFIs" Initiative.
- The objectives of the activity were:
- using ICTs to promote the establishment of skills and professionalism among recipient microfinance institutions;
- using the China Microfinance Web Portal to build a bridge between domestic Chinese organizations and international microfinance organizations.
In total, over 60 MFIs participated in the activity, 20 organizations were selected by PlaNet Finance China to be PC recipients, and this was all very well received by the participating MFIs.
Data Collection and Dissemination
Beginning in 2002, PlaNet Finance China began to collect standardized data about the performance of microcredit programs in China. A data collection team designed and revised data collection information sheets, designed a database structure and invested in server technology, distributed surveys, incentivized MFIs to provide accurate data, collated and organized data in a queryable online database. The database aims to provide up-to-date information on the outreach and financial performance of microfinance programs in China. It is currently accessible on the China Microfinance Web Portal.
China Microfinance Web Portal
A go-to point for comprehensive information about the microfinance sector in China.
In 2004, PlaNet Finance China began the creation of a bilingual China Microfinance Webportal to host a national microfinance institutions database, a news corner, bulletin board services, a library, e-learning modules and other resources for Chinese and international microfinance practitioners, researchers, donors and policy makers. Initial sponsorship camefrom the European Commission. In 2004, the Portal was nominally adopted by the China Association for Microfinance. With help from McKinsey & Company, a formal review and "upgrade" project was conducted in early 2005. The second phase of Portal upgrading has now been completed. The Portal continues to be managed and developed by an internal team at PlaNet Finance China. Current Portal activities are conducted within the framework of the Broadband for Barefoot Bankers project.
Click here to view the Portal and review its dynamic contents: www.microfinancechina.net
MIS Implementation
With support from international experts from the PlaNet Finance network and financial sponsorship from the World Bank's Information Systems Fund, PlaNet Finance China helps local Chinese microcredit programs assess their information systems needs and adopt loan tracking software. Until 2005 there was no single effective microfinance MIS in operation in China. PlaNet Finance can perform different types of diagnosis for different types of MFIs. MFIs may be in the following phases of MIS use:
- Preparation 每 currently reviewing its processes and procedures, documentation, administrative and infrastructural issues.
- Needs assessment 每 drafting its current and future requirements for an MIS.
- Software evaluation 每 assessing the software currently in use to determine how well it suits our needs.
- Selection of software 每 assessing different software products to see which one will best the MFI to meet its organizational goals.
- Implementation 每 having selected software the MFI may be in the process of rolling it out.
- Optimisation 每 having installed software already the MFI make seek ways to to use it more effectively
Examples of IT Uptake
During a 3-day training, microfinance loan officers 每 young professionals from Hebei and Henan, 20-35 years old, learn to send and receive emails, to use search engines, and develop content for their own websites.
After a 5-day training, microfinance loan officers from Guangxi receive computers donated by PlaNet Finance which they use to process loans, hook up to the Internet, and communicate with the outside world.
After a 5-week implementation project, Technical Development Solutions, PlaNet Finance, and Mercy Corps have helped the China Foundation for Poverty Alleviation successfully migrate 4 branches' data to a new loan tracking system which has computerized arduous procedures, and provided a complete set of auto-generated reports. For example, a cash reconciliation process and receipt data-entry routine that used to take an information officer 2 days now takes 4 minutes.