Despite the availability of technology today, there is a problem in developing a good and problem free MIS software for Microfinance Institutions (MFIs). What are the complexities involved in developing good MIS software

Despite the availability of technology today there is a problem in developing a good and problem free MIS software for the MFIs. The diverse nature of microfinance creates an intriguing complexity for software application development. Some of the complexities in developing a single or a small number of software to meet the needs of the 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. In Indian for example some MFIs follow thee-Grameen Model as per the example of the Grameen Bank, Bangladesh while other follow Self Help Group Model. Methodology on Interest Payment: The practices for calculating interest and the periodicity for its payment vary according to the product and organization. These variations can occur even within the same organization 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.