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Enabling the Expansion of Microfinance using Information and Communication Technologies
Abstract
This chapter looks at the origins and evolution of microfinance and explores some of the challenges faced by microfinance institutions (MFIs). It examines the costs and benefits of using ICTs as a means of increasing the effectiveness and efficiency of MFIs enabling expansion and outreach to remote populations. Specific technologies such as smart cards, PDAs, and MISs are explored in detail and case studies are provided. MFIs can also use ICTs to facilitate income-generating opportunities for borrowers, and the case of Village Phone will highlight this potential. It is hoped that this chapter will advance the case for the continued use and research into the synergistic combining of microfinance and ICTs.
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