Briefly discuss some of the complexities in developing a good and problem free MIS software to meet the needs of the Micro Finance Institutions (MFIs).

Some of the complexities in developing a single or a small number of software to meet the needs of the Micro Finance Institutions (MFIs) are discussed below: Many Institutional Models: The organizational forms is a function of the specific of social, political, economics, regulatory and legal environments throughout the world. There are a variety of organizational forms that are assumed by the MFIs for carrying on their work. The MFIs can be in the form of credit union, cooperatives, Non-Governmental Organizations (NGO) and even banks. All have their own varied type of requirement for MIS and its automation. Different Lending Methodologies: MFIs have vastly different lending methodologies across the globe and even within the same country. Some MFIs follow individual lending some follow village banking methodology and yet others may be following solidarity group lending. In India for example some MFIs follow the e-Grameen Model as per the example of the Grameen Bank, Bangladesh while others follow Self Help Group Model as propagated by the institutions like National Bank for Agriculture and Rural Development (NABARD). Methodology on Interest Payment: The practices for calculating interest and the periodicity for its payment vary according to the product and organisation. These variations can occur even within the same organisation depending on the product and the area of operation. Other Varied Requirements: There are variations in terms of the currencies, languages and reporting requirements of the MFIs.