A microfinance information management system enhanced with communication features; case study: HOFOKAM MFI

Abstract

The major problems micro-finance institutions are facing are management of loans given to the clients and management of the staff records are long and tiresome processes. The current systems in place do not allow customers to access their statements and transactions history on time. In the similar manner, staff records are kept in paper files and hence hard for information retrieval by the management. To solve these problems faced by the micro credits, the researcher used a critical review of the existing literature on micro credits. Mechanisms for information gathering and dissemination within the microfinance information management system enhanced with communication features were identified using interviews which were achieved by the use of an interview guide, observation and a prototype of the system for microfinance institutions was designed. The system is meant to ease the way how microfinance manages loans and staff in the institutions to reduce on the long and tiresome processes involved. This will help customers in saving their time and also help the management in reliable and timely access to information that supports their decision making process. Hofokam MFI was used as a case study and a microfinance information management system enhanced with communication features was done and the system was later developed and tested. If adopted, the developed system will go on in helping to iron out the challenges that were identified during the data collection and analysis stage. The same system will deliver detailed reports which will help the Government in loan allocation and poverty reduction as mentioned in the literature review.