The following is a guest post by Amy Carol Wolff, who is an Intern at Opportunity International and Imagine This! TV.
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As the microfinance market continues to develop in both area reach and method, Opportunity International has engaged several leading microfinance minds in conversation on Twitter. Through a live discussion called Microfinance Monday (#mifimon), microfinance leaders and developers join in discussing the latest developments in the market, and ways to ensure effective implementation.
On, July 20, 2009, we had a lively discussion regarding developing technology for microfinance institutions (MFI). The tool of Short Message Service (SMS) technology is proposed as a method of cutting costs for microfinance institutions (MFI) and extending their reach into rural areas. This type of technology would utilize mobile phones for various methods of communication and banking.
As we discussed the benefits and drawbacks of this kind of tool, it became clear that two elements cannot be ignored: affordability and intentionality. While technology could increase the reach and significantly cut administrative costs, several contributors reminded that our purpose as microfinance providers and supporters is connecting and empowering our client base. Implementing SMS technology has the risk of decreasing person-to-person contact within MFI programming. And according to several microfinance leaders, this kind of personal contact and support is considered to be one of the main reasons for high pay back rates. Credit SMS, an organization about launch a pilot program utilizing this tool, mentioned that they will be looking to develop social impact elements in their implementation. It is also important to note that SMS technology developers are not looking for this type of tool to replace existing programs, but rather provide an additional resource for MFIs to reach the rural poor.
Opportunity International (via @optinnow) will continue to host these discussions to spur on continued innovation within the social entrepreneurial community. In addition, starting July 27, they will be hosting a new type of facebook discussion through the #MiFiMon fan page. The all-day affair will begin at 8:30AM CST and go until midnight. The next twitter discussion will be on August 3rd from 12PM-2PM CST.
Here is the #mifimon hashtag feed:
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Amy is currently studying at Indiana University for her Master’s in Public Affairs in Non-profit Management and will graduate in 2010. She is about to complete her internship with Opportunity International, a world leader in microfinance. Among other interests, Amy is passionate about the impact microfinance has had and will have on people, families, communities and entire nations. Amy also coordinates sector relationships for Imagine This! TV.
Opportunity International
- Provides opportunities to the chronic poor via microfinance and other financial services
- Organization Type: Non-Profit
- Website: www.opportunity.org
- Founder(s): Al Whittaker and David Bussau
- Founded: 1971
- Location: Oak Brook, ILL, United States
Source: badidea.co.uk
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