Microfinance Institutions play a big role in financial inclusion, and providing credit facilities to many people in the world. They provide financial services to small business and entrepreneurs, bridging a major gap in the financial industry. These supplement and complement the role played by banks, Saccos, and other informal banking service providers.
The microfinance industry in Kenya has been rapidly growing, fuelled by the demand for credit facilities, and numerous business entities that require financing their activities once in a while. This is replicated in surrounding countries such as Uganda, Rwanda and Nigeria, which has a very high population and thus a bigger market.
The success of Microfinance Institutions requires good management and application of cutting edge technology to aid management decision making. There are several Microfinance information management systems that can be used. Most of these systems such as Jisort Banking Software are offered on cloud platform, making it easy for the institutions to run several branches. The leading management system for Microfinance institutions, MicrofinanceERP offers many services such as bulk payment system and other customized features that allow for quick disbursement of services. For a microfinance to succeed, the use of a good microfinance information management system and goo decision making, must work together.