Management Information Systems

725 Words2 Pages

MANAGEMENT INFORMATION SYSTEMS (MIS)

The most common technology applied by MFIs is the management information system known as MIS. MIS is an integrated computer-based application used to access useful, timely and accurate information to allow the user to make appropriate decisions, and to manage information effectively and efficiently. MIS includes modules such as loans portfolio tracking, human resources, internal control, accounting, and financial analysis (CGAP, 2010). MIS is often one of the major factors that enable MFIs to achieve significant growth. Kashyap (2009) stressed that “It is difficult for an MFI to upscale significantly and maintain the accuracy and transparency of its loan portfolio without an MIS”.(PAGE?)

PERSONAL DIGITAL ASSISTANTS (PDA)

A personal digital assistant (PDA), also known as a palmtop computer, is a mobile device that functions as a personal information manager. MFIs employ PDAs to ease loan processing, improve loan officer efficiency, and increase data accuracy and access in the field. To get the maximum benefits from PDAs, MFIs should have a stable MIS, and high speed access to data from their branches (Waterfield, 2004).

SMART CARDS

Smart Cards are wallet-sized plastic cards have an embedded microchip that allows data storage, and works like an electronic passbook that allows MFI clients to carry all their related information on this microchip. Smart cards are used to manage savings accounts, disburse loans or make transfers (Whelan, 2004).

Reliable electrical power for card readers, software integration between card readers and the central management information system, together with processes, policies, and staff resources for handling lost, stolen or damaged cards are required prior to the introduction of smart cards (Whelan, 2004).

POINT OF SALE (POS)

Point of sale (POS) is a device or system often linked to computers, bank card readers, or even mobile telephones, that is located at a physical location such as a retail outlet, in order to perform an electronic transfer from one account to another or from a customer to a retailer. Some MFIs have implemented this technology in order to increase the security of financial transactions, reduce transaction cost in order to serve clients, and to reach new areas without branch infrastructure (Owens, 2009)

MOBILE PHONES

Mobile banking is a way for clients to perform balance checks, account transactions, payments, etc. using a mobile phone. Mobile phones provide a new and rapidly developing technological alternative delivery channels to extend financial services to those excluded from formal financial systems. Mobile phones allow clients to call into an automated system to conduct business transactions, and to access and request information.

More about Management Information Systems

Open Document