news - Microfinance News Synopsis: MFIs tap technology as the bridge to reach unbanked millions

2012 Annual Conference and the 1st African SPM Conference

from 24/09/2012 to 29/09/2012

Kampala (Uganda)

The Africa Microfinance Network (AFMIN) will organize its 11th Annual Conference
and the 1st African SPM Conference in Kampala, Uganda, from September 24th to 29th, 2012

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Microfinance News Synopsis: MFIs tap technology as the bridge to reach unbanked millions
July 20, 2010

July 20, 2010 (Microfinance Focus) - Microfinance News Synopsis brings a compilation of industry headlines broadcasted by other news media from across the world.

MFIs tap technology as the bridge to reach unbanked millions: Kenyan microfinance institutions have for a long time served the unbanked segments of the population despite several obstacles in their quest to access this niche. It is estimated that micro-enterprises contribute about 18 per cent of Kenya’s gross domestic product and 25 per cent of non-agricultural GDP. It is thus not surprising that many MFI’s have taken to using technology, especially mobile phone platforms, to cut on high operational costs and reliance on commercial banks while increasing focus on core functions. Early this year, during the opening of the Africa-Middle East Regional Micro-Credit Summit in Nairobi, President Mwai Kibaki affirmed the central role micro-finance plays in national development by striving to address the challenge of providing financial services. “The sources of funds and the cost of providing financial services as well as the technology and infrastructure available to this sector remain real challenges,” [Business daily]

Microfinance mission accomplished? Hardly, expert says: The recent decision by its board to close Seattle nonprofit Unitus and shift its resources to “other strategic areas” prompted Adam Sorensen, a consultant working for the International Finance Corporation, to write a response questioning the actions. Here’s his personal perspective: Adam Sorensen, a Seattle native, is a microfinance consultant currently working in South Africa. Unitus, the Seattle-based, non-profit microfinance organization announced ‘Mission Accomplished’ on the eve of July 4th by closing its offices in Seattle, Bangalore and Nairobi and dismissing its 45 staff members. Like the infamous declaration by George W. Bush in 2003, the decision by the Unitus board of directors is hardly justified. Despite the definitive claims of success, the closure of Unitus has only raised confusion about the organization and questions about the state of the microfinance.

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