Challenges and Opportunities in Microfinance Technology

After demonetization in India, microfinance institutions (MFIs) have started upgrading to Core Banking Solutions (CBS). CBS is helping these institutions in servicing more customers and also easing the process of repayment collections using National Automated Clearing House (NACH). However, MFIs are facing challenges when it comes to implementation of CBS, and one of the reasons is lack of technology talent in MFIs. MFI technology vendors are also offering solutions that are capable of collecting rich-data from customers for behavioral analysis - a key component that many MFIs want to explore in order to mitigate credit risks.

This report discusses: 

• Transitioning to Core Banking Solutions;
• The need to understand customer behavior.