Micro Finance Institutions

Introduction

Micro Finance Institutions (MFIs) provide a broad range of financial services to those excluded from the formal financial system especially in developing nations where the reach of financial services is limited.

These institutions provide financial services such as deposits, loans, payment services, money transfers, and insurance products to low-income households, and their micro-enterprises and small businesses. This enables the poor to raise their income levels and improve their living standards.

The underlying principle of MFIs is to provide small amounts of credit to poor in developing countries and to help them effectively use credits, thus raising the recipients’ income and decreasing their risk level vulnerability.

Situation Analysis

• 'Distance' or reaching the target rural communities in remote areas in the developing countries is the greatest challenge.
• High cost of service associated with the low-value, high volume and cash-intensive nature of the business
• High costs for procuring physical infrastructure required to broaden the reach.
• Absence of information database and lack of credit history of people with small means
• Inability to evaluate and monitor cash-flow cycles and repayment capacities in the absence of complete information
• Inadequate manpower
• Lack of proper orientation or expertise of human resource

High Level Solution

• POS terminals are provided to small-business owners who are employed as agents. Agents are accessible as they are located in the target villages.
• POS terminal with built in smartcard reader allows clients to access all microfinance services - savings, loan repayment, credit, insurance, etc.
• System involves a combination of local agents with POS terminals and clients with smartcards. The POS device prints one receipt each for the client and the agent.
• Smartcard stores client authentication, financial and demographic information.
• Secure user authentication through both fingerprint and PIN.
• Smartcard security can be integrated with a Core Banking System for automatic account update and fraud control.
• Daily updates to the MIS central server using a GSM connection.

Bottom Line

MFIs are driven by one primary goal - poverty reduction; and VISIONTEK solution helps achieve this goal for the Micro Finance Institutions.

Case Study

Micro Finance - Life Insurance
With updated transaction and customer data on central servers, more

The VISIONTEK Advantage

• Consume less time than the pure cash based transactions
• Enhanced transparency and accountability
• Increased operational efficiency
• Instant server update and receipt printing
• Minimize administrative and transaction cost
• Productivity enhancement of staff
• Proven, secure, and scalable solution
• Real time inventory management
• Reduced book record keeping
• Save on stationary and manpower expenses
• Secure transactions using biometric authentication
• Transactions updated real time on the central server
• Updated customer data at central server at any point
• Availability of units and spares in Indian Rupees
• Prompt service across Linkwell Service Centers

Value Added Services

• Mobile E-Top up
• Payment Disbursement
• Collection of EMI's

Related product - 94 POS

A POS terminal with in-built fingerprint scanner designed exclusively for government and non-government schemes. VISIONTEK 94 POS offers biometric authentication for beneficiary transactions for microfinance and PDS segments.  more