MICROCAPITAL BRIEF: Vijay Pratap Singh, Co-founder and CEO of Ekgaon Technologies, Discusses the Future of Information and Communication Technology (ICT) in Microfinance Institutions (MFIs)

Mr Vijay Pratap Singh, co-founder and CEO of Indian information and communication technology (ICT) provider Ekgaon Technologies, recently was interviewed by microfinance news website, MicrofinanceFocus.com concerning the impact of ICT on microfinance. Mr Singh claims that up to now, new technology has been “reluctantly received” and “half-heartedly implemented” by microfinance institutions (MFIs). Of impediments to progress, he notes that some MFIs have been unwilling to modify operational models to accommodate the new technologies. More importantly, he claims that MFIs are unable to utilize the full potential of ICT because they are unwilling to invest in operational efficiency, specifically in human resources.

Further, Mr Singh asserts the some MFIs are using the lack of technology to leverage additional funding. He states, “For them [MFIs], using technology is just another way of getting more funding. It is not using technology to improve efficiency but using it to obtain new grants.”

Despite these challenges, Mr Singh cites several improvements in ICT such as: biometrics, confirmation SMS (short message service, or ‘text message’), a visual screen on mobile phones that confirms transactions and, for those that cannot read, audio messages that communicate financial information.

About Ekgoan Technologies:

Ekgoan Technologies is an Indian information and communication technology (ICT) provider to development organizations. Ekgaon’s co-founder and CEO, Mr. Vijay Pratap Singh is an Ashoka-Lemelson Fellow and has extensive experience in institutional development, communication systems and grassroots networking.

By Matthew Fox, Research Assistant

Source and Additional Resources

MicrofinanceFocus: Cloud Computing is Way Forward for Smaller Microfinance Organization – Ekgaon, 9 August 2010: http://www.microfinancefocus.com/news/2010/08/09/cloud-computing-is-way-forward-for-smaller-microfinance-organization-ekgaon/

MicroCapital Universe: Ekgaon Technologies: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ekgaon+Technologies

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