Building of an ecosystem of applications for efficient delivery of financial services: A case for MIPC

Microfinance industry has highest growth potential for the country like India which consists of the world´s second largest population. The potential lies in the fact, that most of the rural population is not covered with good financial services. The infrastructure for the financial inclusion is not adequate given the issues relating to the system of administration. Microfinance institutions (MFIs) have made an excellent attempt to reach in the interiors of the country and provide cheap loans and financial services thereby accelerating the growth rate and economic development in recent years. However, these institutions have to face systemic problems in their loan financing business, in terms of high transaction and operation cost of managing such a business. Use of Information and Communication technology could help these institutes in efficiently delivering the required financial services. This research paper focuses on the core technology issues which MFIs face in maintaining as well as operating their Information Technology (IT) based system application. The issues, in particular, relates to data collection, flexible information processing, data migration and data warehousing as well as data mining. This paper makes an attempt to provide a solution with Microfinance Information Processing Center (MIPC) as a low cost and feature rich IT solution business model for the efficient delivery of the financial services for the Microfinance Industry. Also, the various benefits derived from implementing a model such as MIPC are explained in depth in this paper.