Integrating MIS with Microfinance

Some of the challenges faced by Microfinance Institutions (MFIs) in India have revolved around the issues of a lack of trained labor for local level administration, resource mobilization and the cost of services. One way to tackle these problems is through the use of Management Information Systems (MIS) and this is being demonstrated by Equitas, an Indian MFI.

TC-I had previously featured an interview with the founder of Equitas and they were recently featured as a leader in implementing information systems in microfinance, by Greg Chen of CGAP. Some examples of technology being used by Equitas are,

E-Docs. Membership and loan applications are completed manually by branches but are couriered to a central processing center. The documents are then scanned and from there on out, remain paperless. Forms use a series of check boxes which can be read by scanners and coded automatically.  Remaining manual entries (e.g. names) are entered by a dedicated back office processing unit.

Real Time Meeting Monitoring. Within 15 minutes of the end of a group meeting, loan officers send a text message (SMS) by cell phone with three pieces of information: meeting attendance, loan collections, and when the meeting ended.  This information is picked up by Equitas’s system which then compares it with what is expected, and creates a branch-by-branch report.

Equitas also uses SMS to gather real time information on cash management and Optical Readers for back-office operations.  The Equitas model shows the need for MFIs to focus not just on innovation in the lending model, but also on driving efficiency through various stages of the loan process. MIS has played an important role in the growth of traditional financial institutions over the past few decades and there is no reason it should not do the same for MFIs.

The complete article by Greg Chen can be found here.

[TC-I Call to Action]: MBAs Without Borders opportunity with water purification project

MBAs Without Borders is looking for a Business Development Associate for a 6 month position in Ahmedabad, India.  The project is with the Environmental Planning Group Limited (EPGL).

The Environment Planning Group Limited (EPGL) is a socially minded for-profit company incorporated in Ahmadabad, India. EPGL’s vision is to manufacture, install and operate 3,000 Reverse Osmosis (RO) water purification systems in rural and urban India over the next five years to provide pure, low salt, soft, micro-organism-free, safe drinking water to over five million people at an average consumer price of US $0.004 per liter or US $0.25 per person per month.

The position focuses on financial reporting and analysis.  Applications are due by April 15, 2009, so be sure to review the details here and apply directly from the MBAs Without Borders website.

Sanitation innovator wins Stockholm Water Prize

Sulabh‘s founder, Dr Bindeshwar Pathak, was recently named the 2009 Stockholm Water Prize Laureate.  Sulabh has been working for decades to address sanitation, health, and hygiene in India and other countries.  Through inventive toilet designs, new biogas technologies, and his struggle for human rights, especially for those of the “untouchable” caste, Dr Pathak is recognized worldwide as an innovator and social reformer. A Business Standard article explains further:

The social reformer, who triggered the revolution against ‘sanitation crisis’, has been the main force behind changing social attitudes towards traditional unsanitary latrine practices in slums, rural villages and dense urban districts, and developed cost-effective toilet systems that have improved daily life and health for millions of people.

Dr Pathak will receive the award in Stockholm during World Water Week in August.

[TC-I Call to Action]: Yale Global Social Entrepreneurship Course

[Via Ajaita Shah]: Yale is working to identify social entrepreneurs working in the public, private and NGO sectors in India and invites them to participate in a Fall 2009 program on Global Social Entrepreneurship at Yale.

A core goal of the program is to link teams of Yale students with mission-driven social entrepreneurs in India over a four-month long course designed to bring the students and social entrepreneurs together to develop a business plan which addresses a specific management challenge the social enterprise is facing.  Key attributes for the course commencing in the Fall of 2009 are:

–         Five teams of 4 to 6 students each will be dedicated to working with a different social enterprise on a project vital to its continued organizational development;

–         The selected social entrepreneurs will visit the Yale campus for an intensive week of faculty and student interaction specific to their challenge;

–         Student team members will visit India to get a more practical view of the challenge and to meet with (or present recommendations to) each social enterprise’s management, staff and trustees;

–         A two-day conference will be held in India at which students, faculty, Yale alumni, each social enterprise’s representatives, and invited guests will hear and discuss the plans and explore issues of broader import to social entrepreneurs.

They are actively seeking, and accepting applications from, social enterprises in India interested in collaborating with them in next Fall’s course.  A one-page description of the program and an application form (due no later than April 10, 2009) are here and here.

Article on Atlas Corps and Deadline for Fellows April 1st

Here is an excerpt from a Washington Post article on Scott Beale and the Atlas Corps, an organization we have written on numerous times in the past:

His creation is Atlas Corps, which lures highly-skilled non-profit decision-makers from India and Colombia to the United States for a year, running Sept. 1 to Aug. 30.

He concentrates on India and Colombia because he speaks the languages and because they have highly-developed non-profit sectors. They also have a high opinion of the United States, Beale said.

To join this program, go here before April 1st, which is when the applications are due.

E4SI selects 24 fellows to help change India

Here is an update on a great fellowship founded by one of our colleagues Nitin Rao.

The Engineers for Social Impact (E4SI) Fellowship Selection Committee is delighted to announce that, after receiving and carefully reviewing the close to 500 internship applications it received for its 2009 edition, it has made offers to 24 outstanding candidates for 14 roles at 10 partner social enterprises that focus on development by means of sustainable for-profit entrepreneurship.

You can read further here.

[TC-I Call to Action]: Ennovent looking to fill Investment Manager position

Here is an opportunity for an experienced finance professional.

Job Profile

Title

Investment Manager

Job Objective

To develop and manage the investment portfolio of ennovent in India and Asia

Start Date

As soon as possible

Location

India – frequent travel in India and Asia

Reporting Relationship

Position reports to Managing Director

More information can be found here and general information on Ennovent can be found here.

Training programme on “Governance and Management of NGO’s and NPO’s

An announcement in NGOpost calls for application for a six-week full time training programme on “Governance and Management of Non-Profit Organizations (NPOs/NGOs)”, scheduled between 6th July 2009 to 14th August 2009. The training is offered by Entrepreneurship Development Institute of India (EDII).

The training cost including accommodation is free for participants belonging to countries listed  in Indian Technical and Economic Cooperation (ITEC). But participants from countries not listed can attend the training programme for the cost of $1500. Strangely, though the training programme is offered in India in partnership with the Indian’s government, India is not enlisted in ITEC. As a consequence, the fee applies to participants from India too!

Interested people can get more information on applying and information brochure here at EDII’s website.

Sa-Dhan to Host Microfinance Conference in New Delhi

Sa-Dhan, an association of community development finance institutions in India will host a National Microfinance Conference in New Delhi on March 31, 2009. The conference is centered on the theme, ‘Microfinance Ecosystem: Equilibrium Between Growth & Effectiveness’.

One of the goals for this event is for Sa-Dhan member organization to come together with academicians, practioners and policy makers to strategize on ways to overcome issues plaguing microfinance in India, such as “commercialization of microfinance institutions (MFIs), governance, risk management, provision of holistic microfinance services (like savings, microinsurance, livelihood, etc), resource mobilization and credit crunch and cost of services”.

The conference is set to bring the policy makers, mainstream financial institutions, donors, financiers, practitioners, academicians, researchers, parliamentarians and international participants in one platform. Amongst others, the conference would specially focus on Effective Microfinance, Linkages, Opportunities, Gap in Governance, Ethics/Values, Code of Conduct etc.

Some of the speakers at the conference include Prof. Muhammad Yunus of Grameen Bank and Ms. Ela Bhatt of SEWA Bank. More information on the conference can be found here, and the registration form is available here.

[TC-I Call to Action]: Total Immersion Programme in Finance and Development Summer Internships

The Centre for Development Finance (CDF) announces some very exciting internship opportunities for this summer.  If you’re looking for something more long term, word has it that CDF will likely be releasing postings for BoP related full time positions in the coming weeks… check back for more information!

Total Immersion Programme in Finance and Development (TIP/FD) – Summer 2009

CDF invites internship applications for the Summer 2009 IFMR “Total Immersion Program in Finance and Development (TIP/FD).”

Description of the program follows and application requirements follow below and in this CDF TIP document, and to apply please use the following link.

The TIP F/D provides undergraduate and graduate students interested in microfinance, development finance, and economic development an opportunity to gain hands-on experience in working on issues relating to access to financial services for urban and rural poor in a developing country. Interns will participate in a structured, two-week course directed by leading researchers, IFMR Centre Research Associates, and practitioners from the Indian government, microfinance institutions (MFIs), and NGOs. The course will be followed by eight weeks of work on a CDF projects which will consist of either field-based research, policy/sector wide studies or data analysis.  Past interns have completed stand-alone projects or worked to initiate, implement, and scale-up existing projects or pilots at the Centre.

The list of summer internship projects can be found online here and in this CDF Project Descriptions document. Interns may also be placed on another of CDF’s ongoing projects.

Internships are unpaid, although CDF will assist with housing and food or provide a small stipend of up to Rs 10,000/month toward living expenses. All interns are encouraged to obtain funding to cover international travel and personal expenses during the internship period.

This year, the TIP/FD will take place between June 8 and August 14, 2009. Applications will be accepted until April 15, 2009, although we encourage interested applicants to apply as soon as possible to ensure the best matching of interests and skills.

Positions of Particular Interest to the TCI Readership: Continue reading

Another failed development policy in the works?

A few headlines regarding the World Bank recently caught my eye, mostly because they are not the usual development headlines I am used to reading.  In the Business Standard‘s “Migration to urban areas is good, says World Bank,” and domain-b.com‘s “India’s rural job schemes are barriers to development: World Bank news,” the focus is on a new World Bank report that encourages a population shift from villages to cities.  More than that, the World Development Report 2009: Reshaping Economic Geography says that current schemes to improve rural life are contrary to development, as pointed out by domain-b.com:

The central government’s National Rural Employment Guarantee (NREGA) scheme and other poverty alleviation schemes act as policy barriers to economic development and perpetual alleviation of poverty, according to the World Bank.

In short, the report encourages the process of rural-urban migration.   This approach seems to be the  opposite of the upswing of efforts to address rural poverty and improve rural life so that the majority of India’s population has the same economic opportunity as in urban areas.  Instead of focus on rural schemes, the report advocates improving infrastructure in cities to boost economic activity.   Here is a quick look at the reasoning, as quoted by the Business Standard article:

“The world’s most geographically disadvantaged people know all too well that growth does not come to every place at once,” said Indermit S Gill, director of the World Development Report (WDR) and chief economist, Europe and Central Asia. “Markets favour some places over others. To fight this concentration is tantamount to fighting prosperity,” Gill added.

What does it mean for India when an international force such as the Bank supports a shift from rural to urban areas?  Will improving basic infrastructure in urban centers really address the pressure of large increases in city population?  While I’m not against migration as a whole, I remain skeptical about putting emphasis on encouraging rural to urban migration and discouraging rural schemes for poverty alleviation.  This debate also points back to an earlier post I wrote on urbanization.  Is this another development report gone bad?

mKrishi – More power at farmers’ hands

The Hindu reports about mKrishi (mobile Krishi) a mobile agro advisory system launched by Tata.  It can help farmers get personalized advise and updated information on their mobile phones about factors that may affect their crops such as weather.

Prima facie, this looks very similar to Nokia’s LifeTools that ThinkChange India reported a few days earlier.  However, there is one critical aspect in which mKrishi goes one step further. mKrishi mobile phones, that run on Tata Indicom’s network, are equipped with sensors that can read and send data about the current status of their crops.  This combined with an on-phone camera, should help agricultural experts provide specific advise experts understanding the on-field situation correctly.

According to K. Ananth Krishnan, vice-president and chief technology officer, TCS, personalised information and advice are given after farmers submit the soil nutrient and farming pattern data (The Hindu)

Further, it is also usable by illiterate farmers to make a query from a cell phone using voice-specific functions and get a response as an audio message.

This initiative has fetched TCS Wall Street Journal Global Innovation Technology Award for 2008. As I researched further to form my own opinion, I came across Ramesh Jain’s post on mKrishi.  He is a Professor of Computer Science and Engineering at University of Michgan, Ann Arbor and an entrepreneur.  I suppose his testimony should have better credibility than mine!

This project is truly revolutionary — it goes farther than most similar projects do.

[TC-I Changemakers]: Echoing Green’s Cheryl Dorsey

Editors’ note: The ThinkChange India staff is committed to providing our readers with first-hand insights from groundbreaking changemakers. Readers will be able to see other conversations under our TC-I Changemakers tab.

echoing-green1

Cheryl Dorsey is the President of Echoing Green, a leading global nonprofit which “invests in and supports outstanding emerging social entrepreneurs to launch new organizations that deliver bold, high-impact solutions.” Since its inception in 1987, Echoing Green has awarded more than $27 million in start-up capital to over 450 social entrepreneurs. Unlike typical venture capital firms, they are authentic collaborators in the process of effecting social change:

We consider ourselves active investors-not just providing funding, but also helping our social entrepreneurs achieve their maximum potential through a range of support services, including training, networking opportunities, consulting, and championing. Similarly, we view our fellows as investment partners, with whom we collaborate as they build and grow their organizations and with whom we hope to have a long-term relationship.

Cheryl became President of Echoing Green in May 2002, ten years after being awarded the Echoing Green fellowship herself for “Family Van,” a community-based mobile health unit for at-risk residents of inner-city Boston neighborhoods.

ThinkChange India’s Prerna Srivastava and Shital Shah spoke with Cheryl about Echoing Green’s path-breaking work, and solicited her insights regarding the future of the social entrepreneurship sector. Special thanks to Shalena Broadnax for her unflagging spirit during the process of arranging this interview.

We were struck by Cheryl’s groundedness and passion for this field. Overall, Cheryl emphasized the importance of being embedded in the local community, sticking by one’s core values, the “human capital” side of the equation, and the ability of anyone to get involved in social change even if they are not an entrepreneur.

The full interview follows below.

The following questions were discussed over the phone. The answers are not verbatim.

ThinkChange India (TCI): Can you start by briefly describing the work of Echoing Green, including its history since inception? How has the organization evolved since 1992?

Cheryl Dorsey (CD): Echoing Green was started in 1987 by the founding members of a private equity firm, General Atlantic, LLC. The idea was to bring meaningful venture capital principles from the private sector to philanthropy. They provided wraparound technical support services to give the organization the best chance of success and be on the cutting edge of social entrepreneurship for positive social change. The organization started as a private foundation with secure revenue from many sources, but has since evolved into becoming a public charity. Now, Echoing Green is a social venture fund. Continue reading

D.light’s d.sirable business success

But what really has us excited is the excitement at the consumer level.  If you have a chance, visit D.light’s website to see hear some of the remarkable stories of their customers and how light has impacted their lives. And also take a look at the letter that D.light just received from a resident in Orissa living in D.light’s first 100% solar village. We’ve got thousands and thousands of villages to go, but a very exciting start.

From a Nextbillion.net article on this disruptive company aiming to provide solar energy to India’s rural poor. This article emphasizes what is one of the most important aspects of a successful business, partcularly startups, which is knowing your customer and focusing on developing your entire business model to what they need and want.

Kubera-Edelweiss Social Innovation Honours awards 3 Indian organizations

Anjali, Azad Foundation and Samata are the winners for their innovative and outstanding work for the Girl Child in the fields of Health, Employability and Education. Here are the descriptions of each social entrepreneurship organization:

Anjali: Focusing on mental health issues of mothers and daughters in Kolkata, Anjali has been awarded top honors in Health.

Azad Foundation: Located in Delhi, Azad nabbed the Employability category by training girls from the slums to become professional taxi drivers.

Samata: Finally, Samata provides an innovative education and research curriculum for tribal girls in Andhra Pradesh.

For more information on the Kubera-Edelweiss Social Innovation Honours, check out their website here.