Financial institutions depend on their ability to process large quantities of information quickly and accurately. For smaller institutions, such as microfinance institutions, establishing and managing systems to process information is especially difficult. Skilled and properly trained staff is scarce, funds are limited, and a lack of formal, documented, and enforced processes—the building blocks of back office systems—only add to the challenge.
Management Information Systems (MIS) also known as information systems or core banking systems capture and store data, process data to produce meaningful and relevant reports, and support operations by enforcing defined processes and providing an audit trail. Most institutions benefit from using more complex, computerized MIS to ensure the accuracy and efficiency of managing large amounts of information.
In this day and age where access to information is not what determines success but how you process that information is the key that shall unlock the door to success, it is crucial to have a system in place that not only provides end to end view of your operations but also provides meaningful insights into the future.
All this makes the implementation of MIS extremely crucial as a successful implementation would go a long way in ensuring improved effectiveness of operations and a stable base to achieve further growth. Lauren Braniff and Xavier Faz practical guide looks at the pitfalls that encompass such implementation for small MFIs and how approaching the implementation as a business transformation project having a core project management team that has close involvement across the institution increases the likelihood of success.
Once MFIs have their house in order only then can they focus on future growth otherwise they will be continuously firefighting on day to day basis.