4

Sa-Dhan Patrika

Volume 7,

Issue 1, September 2006

technology is the best solution to

Problems in Computerisation

dissipate the drudgery of repetitive

tasks.

While software can be a growth driver

for many institutions, the story is not true

2.

Creates standardised processes

for all. There are various reasons for

across an institution. Under the

institutions not being able to use

older manual system, there is the

software fully and some of these are:

possibility of people introducing

their own perceptions at various

1.

Legacy System

levels of recordkeeping.

IT-

powered systems prohibit anything

This occurs when an MFI is already

other than what is standard.

using a rudimentary software

package and is in the process of

3.

Enables incentive-based system for

installing new software. There will

the staff. Most MFIs plan to shift to

be many differences in UI and staff

the incentive system so that staffs

may be used to one type of data

doing good business are awarded.

entry. They may take time to first

Such systems therefore bring

unlearn the older methods and

objectivity in measuring each

then adopt the new system. New

one's performance and make it

software needs customisation so

easy to set up incentive-based

that UI is at least made like the

systems that would further propel

legacy system. Another problem is

the growth of the institution.

that the MFI may already have an

accounting package. The new

4.

Offers flexible products that can be

loan tracking system and the old

customised as per the needs of the

accounting

packages

are

customers. To attract more business

required to talk to each other or

there is the need for a variety of

else problems of interface will arise.

products and the flexibility to

The new system can establish

modify loan, deposit and insurance

interface with the legacy system

packages. When the products can

only if the database is known and

be matched with the needs of the

the read access right is available.

customer, MFIs can expect more

Very often both these are not

revenue from the business.

available. In such cases doing

away with the legacy system is a

better option.

5.

Consolidates the transactions in a

branch on a regular basis if data

sync  is  done  properly.

A

2.

Absence of Computer-Literate

consolidated picture enables the

Staff

MFI to understand the complete

business and take appropriate

Many small-size MFIs do not have

action. For the consolidated report,

trained IT staff which is a must if

appropriate data sync software is

technology infrastructure is to be

required to transfer the data from

put in place. Although vendors

the branch to the head office-

promise support, at least one

based Server, which is most crucial

trained staff member is of great

to keep the branch in order.

help because he or she can take

immediate action, report errors

6.

Provides a platform to build

correctly and seek correct solutions

knowledge-mining

tools.

from the vendor. Although this may

Appropriate software helps in

seem to be expensive in the long

Such efforts push

mapping business intelligence from

run, it is worthwhile and worth the

the growth of the

institution on to a

past data. Old data in electronic

cost.

new trajectory.

form is an asset to an MFI since it

provides the business intelligence,

3.

Inexperienced Vendors

based on which it can change the

product features to provide better

There are many inexperienced

customer satisfaction and charge

vendors in the market. Software

fees for additional services. Such

developed by inexperienced

efforts push the growth of the

vendors is not advisable. Normally,

institution on to a new trajectory.

such software works well in the

beginning. But does not stand the