The Micro finance Institutions working at the grassroots levels of the country are creating opportunities for farmers, house wives and the under-educated millennial. These institutions provide these resource deficient people, a potential new horizons which they would have never dreamt of.
Creating opportunities at this level is way easier said than done. Alexandre Dumas has rightly said “The merit of all things lies in their difficulty.” The MFI’s have had to deal with multiple challenges like scarce resources and far remote locations. From the past few years, these MFI’s are adopting risk management solutions to ensure that they are achieving their organization goals.
Micro finance institutions, following the hub and spoke model are trying to cover as many villages, talukas, towns and cities. Their field officers are mandated to visit these remote areas for fund deployment and collections. Of lately, these organizations have started adopting advanced technologies like financial tracking, remote financial data recording and many more. But even after all these attempts there have been certain insurmountable problems. The lack of a trust worthy mechanism
- To ensure on-field officers are indeed conducting meetings at the right time/location
- To ensure the presence of employees in-the-office at the remote locations
- To ensure all the members of a SHG are attending the scheduled meetings.
- To ensure total number of group members present in any scheduled meeting locations
“A MFI from Karnataka had no scalable and cost effective mechanism to ensure the presence of all the in-office employees across branches. Spending for installing fingerprint scanning hardware was capital intensive. To add agony to the pain, spending on the hardware frequently for each and every new branch that would newly open, added to the expense.”
“MFI’s from Tamil Nadu, Uttar Pradesh, Assam and other states had no other solution to guarantee their SHGs/JLGs members were indeed attending the meetings.”
MFI’s, as part of their risk management policy, are now adopting a unique and novel visual identification and tracking system which absolutely does not require any of the dedicated hardware or the scanners. These MFI’s have not only installed the Mobile Visual Identification and Tracking System (MVITS) in the existing branches to ensure in-office employee attendance but also to track and monitor their on-field employees. The MVITS ensures the on-field employees are meeting 60-70 SHGs/JLGs members per day. This solution helps the management by providing details like number of group members present/absent in daily meetings, their locations, and time stamps thereby ensuring complete control over their company operations.
Dedicated to all micro finances in India
“It is not because things are difficult that we do not dare, it is because we do not dare that they are difficult.”