Microfinance is a type of financial service offered to individuals of lower social economic backgrounds or those who lack traditional financial service. Microfinance originate from micro credit, which is the practice of providing small loans to those who do not have steady source of income, collateral or any credit history. The goal of microfinance is to provide financial service support to encourage entrepreneurs. Opportunity International, a chicago-based non profit believes that “ the path out of extreme poverty for many people around the world lies in entrepreneurship. as it provides access to micro loans to the poor and financial expertise to help them run their small enterprises
Technology is changing at a great pace so if microfinance institution are to keep up with ever-changing demands, its by investing heavily into the latest technologies. Good news is that technological innovation are already available in the market that microfinance can take advantage of and its easily accessible by any microfinance without having to make big investment and that solution is Amala Core Banking System.
Technological innovation can help microfinance to extend their service for a greater number of clients and establish their long term sustainability. Outreach and sustainability are strongly interlinked , The use of Amala Core Banking System and Mobile apps which are Amala Yangu and Amala Popote enable clients even in a remotely and rural areas to have access to finance by submitting their loan applications, upload the necessary documents and viewing their account summary without having to travel big distance. AmalaSoko a mobile app that connects borrowers and lenders on the palm of the hand. Therefore the more the clients microfinance can reach the better their chances to survive in the long run.
Information lies at the very heart of microfinance whether by hand or computer The use of Amala Core Banking system helps Microfinance data to be stored, processed and clearly presented so that Microfinance boards and managers to make the sound decision for example system holds and maintain large amounts of important data such as basic client information to detailed analyses of portfolio statistics and Some Microfinance lack clear insight of their customers but system draw deep customer insight which will be helpful on debt collection and manage delinquency better with data analytics. if there will be any pending repayment it will be shown on the system and it will be easier for Microfinance to understand customer payment pattern.
Amala Core Banking security system is safety and trustworthy as it allows clients to access their accounts safely and securely without worry about identity theft
Before beginning any technology planning the organization must have clear mission, vision, goals and operational procedures as The use of technologies and system help to expand the outreach of microfinance, improve efficiency and reduce cost.