Microfinance institutions (MFIs) use Software Group’s solutions to enable them to succeed in their digital transformation. Our highly scalable solutions allow the MFIs to digitize their operations and execute on their digital strategy to offer their customers a full set of banking services anytime and anywhere. By going digital, an MFI can improve its operational efficiency and expand its outreach while improving the quality of services offered to customers.  In this digital age, MFI’s digital transformation is vital to its existence and relevance in global competitive markets.  Software Group is currently working with 7 out of the top 10 global MFI networks in implementing their digital strategies.

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Increase outreach & Improve portfolio quality

MFIs use Software Group’s channel solutions to improve customer acquisition and increase customer outreach to access areas that are difficult and costly to reach.  By introducing mobile based solutions, MFIs can avoid the limitations of costly bricks and mortar infrastructure. They can provide a service that is convenient for clients and reach new markets beyond their branch network. Using solutions such as Digital Field Application, which consist of mobile applications used for customer onboarding and/or loan origination, MFIs can also improve portfolio quality through enhanced verifications, automated credit decisions, digital processes for loan collections and multiple options for repayment via agents and partner m-wallets.  All of that ensures availability, ease of access, customer convenience and higher satisfaction with services. 

New Revenue Streams

Increase revenues and operational efficiencies

For microfinance institutions to serve low-income clients in a sustainable manner, they must constantly strive to optimize their efficiency and operational costs. International case studies show that by deploying Software Group’s solutions, an MFI can increase revenue as a result of realizing loan officer, field-staff, and back-office efficiencies. MFIs can decrease their operational costs by using mobile banking to disburse loans rather than distributing cash or checks, which implies logistics and personnel costs. Moreover, there are several cost savings from the elimination of physical files and processes and adjacent benefits such as cost reduction in fraud and improved client service.

Customer Experience

Compete through new products, better service and competitive pricing

Using Software Group’s solutions MFIs can provide customers with high value and convenient services that help to increase customer loyalty thereby competing more effectively in the market. Branchless banking solutions not only help introduce new points of service, but also can be leveraged to introduce specialized products and services such as mobile emergency loans. Improvements in efficiency made possible by digitization can also help reduce the cost of sale for most microcredit products, providing opportunities for more competitive pricing. Additionally channels such as Agency Banking can be key to deposit mobilization strategies that help lower the cost of funds for MFIs again providing the opportunity for more competitive pricing. 

Extend Reach

Enable scale and transformation to full banking services

The high-touch and in some cases labor-intensive model of microfinance poses limitations to reach scale. By using Software Group’s solutions, MFIs can scale their operations quickly and if desired, ensure a smooth transformation to full banking services. In this digital age, an MFI’s digital transformation is vital to its existence and relevance in global competitive markets. Software Group’s highly scalable solutions enable microfinance institutions to digitize their operations and execute on their digital strategy to offer to its customers a full set of banking services anytime and anywhere. 

Тo be able to meet the diverse needs of MFIs, we offer solutions like Agency Banking, Digital Field Application, Enterprise Integration Platform, Mobile Wallet, Payment Switch and Card Management, Internet and Mobile Banking, and many others. 

All our solutions are built on a single platform - the mature, flexible and future-proof DigiWave Platform, making for quick launch to market, easy scaling, and cross-channel workflows.