Savings and Technology

Publication Date: 2004
Published by: Microfinance Centre for C&EE and the NIS
Document Type: Paper

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Important points to be considered by MFIs before providing deposit services

This paper considers the repercussions on technology requirements for institutions that begin to offer traditional savings services. The author states that MFIs need to consider important aspects in:

• Operations – need to focus on information management security;
• People and culture – management to prepare staff as early as possible for the upcoming changes in the way of doing business;
• Legal considerations – ensure compliance with existing regulations;
• Audit and control – shift from manual processes necessitates alternative ways of logging transactions to reduce the risk of fraud;
• Flexibility in product definition, information analysis and costs among others.

Finally, the author states the important management considerations:

• Seeking advice from technology specialists, both inside and outside of the organization; establishing technology priorities;
• Setting realistic short and long-term objectives;
• Making choices that are measurable and directly linked to operational goals;
• Allocating sufficient financial and human resources to achieve them.

The author concludes that soliciting good system to support people is critical for successful technology adaptation.