Milton Friedman, economist and Nobel Prize winner, once said – ‘the poor stay poor, not because they’re lazy, but because they have no access to capital.’ Rightly so, a majority of poor people are ‘unbankable’ or ‘unbanked’, conducting their lives outside of the formal banking system. Microfinance is thus a powerful tool for poverty alleviation in growing economies because its primary objective, as a sector, is to make financial services accessible to this segment of the population.
The inherent business model of microfinance makes it challenging to maintain efficiencies and contain costs as customers increase. For a Micro Finance Institution (MFI) to achieve such stability implies the selection of the right microfinance technology that is scalable, reliable, and affordable while simultaneously allowing MFIs to focus on core business areas. The processes that govern the flow of information – in, out and within a MFI – is of critical importance. The growing need of small income earners to access organised funds means MFIs need to monitor a growing number of customers with small transaction values.
Craft Silicon’s BR Core Microfinance Solution (BRmfs) is an award-winning financial solution for the operations of microfinance and co-operative unions. Its rich features and modules work for both small and large organisations that are in the process of becoming microfinance banks or running on Front Office Services (FOSA). We developed BRmfs in recognition of operational problems, and as an answer to anticipated future needs.