Published by Louis Berger Group, November 2019, 9 pages, available at https://sakchyam.com.np/wp-content/uploads/2019/12/Improving-Operational-Efficiency-of-MFIs-through-Tablet-Banking.pdf
The authors argue that “tablet banking” can reduce the operational costs of microfinance institutions (MFIs) while improving the quality of customer service. Through the Sakchyam Access to Finance Program, approximately 2,300 tablets were provided to 10 MFIs in Nepal for use by staff in a total of 486 branches. Based on observations of this rollout, the authors identify three partially overlapping questions that an MFI must address in order to optimize its use of tablets: (1) Which elements of the MFI’s lending process can it automate via tablet banking and what oversight controls are required to manage these automated processes?; (2) Which features of tablets can the MFI use to its advantage, such as card-reading capabilities, to improve the efficiency of data processing?; and (3) What available tablet software modules, such as know your customer (KYC) modules, can the MFI use in its day-to-day operations?
In considering whether an MFI has sufficient capacity to implement tablet banking, the authors suggest assessing financial capacity, technical capacity, regulatory environment and infrastructure available in the relevant service area.
In conclusion, the authors propose that the improved operational efficiency enabled by tablets can allow MFIs to focus on other goals such as improving financial literacy.
By Jolene Khor, Research Associate
Sources and Additional Resources
“Improving Operational Efficiency of MFIs through Tablet Banking”
https://sakchyam.com.np/wp-content/uploads/2019/12/Improving-Operational-Efficiency-of-MFIs-through-Tablet-Banking.pdf
Louis Berger Group homepage
https://www.louisberger.com/
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