Maximizing the Outreach of Microfinance in Nepal : The Case for a Central Technology Platform

This report addresses the establishment of a centralized information and communication technology (ICT) platform for the microfinance sector in Nepal. It has been shown from international experience that ICT improves the efficiency, transparency, a...

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Bibliographic Details
Main Author:	World Bank
Format:	Policy Note
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FORMAL FINANCE ACCESS TO INFORMATION ACCOUNTING ADB AFFORDABILITY AGRICULTURAL DEVELOPMENT BANK ANTI-MONEY LAUNDERING APPLICATION SERVICE PROVIDER AUDITING B2B B2C BANK ACCOUNTS BANK BRANCHES BANK CREDIT BANK LOANS BANKING MODELS BANKING SECTOR BANKING SERVICES BANKING SYSTEM BARRIERS TO ENTRY BORROWER BUSINESS PLAN BUSINESS-TO-BUSINESS BUSINESS-TO-CUSTOMER C2C CAPACITY BUILDING CDS CENTRAL GOVERNMENTS CLEARING HOUSE COLLATERAL COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL LOANS COMMUNICATIONS TECHNOLOGY CONNECTIVITY CONSUMER PROTECTION CREDIT BUREAU CREDIT BUREAUS CREDIT FACILITY CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT MECHANISMS CREDIT POLICY CREDIT PROGRAMS CREDIT PROVISION CREDIT UNION CREDIT-WORTHINESS CUSTOMER BASE DEPOSIT DEPOSIT ACCOUNTS DEPOSIT PRODUCTS DEPOSITS DEVELOPMENT BANK DEVELOPMENT BANKS DEVELOPMENT CENTER DIGITAL NETWORK DONOR FUNDS E-COMMERCE EARNINGS ECONOMIC ACTIVITIES ECONOMIC GROWTH ECONOMIC REFORMS ECONOMIES OF SCALE ELECTRONIC DATA ELECTRONIC FORM ELECTRONIC FUNDS ELECTRONIC FUNDS TRANSFER ELECTRONIC FUNDS TRANSFER POINT OF SALE ENABLING ENVIRONMENT EXCESS LIQUIDITY EXCLUSION EXPENDITURE EXPLOITATION FAMILIES FAMILY INCOME FARMERS FINANCE COMPANIES FINANCIAL ACCESS FINANCIAL ANALYSIS FINANCIAL DATA FINANCIAL HEALTH FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL PERFORMANCE FINANCIAL PRODUCTS FINANCIAL PROVIDERS FINANCIAL REFORM FINANCIAL REGULATORS FINANCIAL SERVICES FINANCIAL SERVICES FOR LOW-INCOME HOUSEHOLDS FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FORMAL FINANCIAL INDUSTRY FORMAL FINANCIAL INSTITUTIONS FORMAL FINANCIAL MARKET FORMAL FINANCIAL SECTOR FORMAL FINANCIAL SERVICES GLOBAL POSITIONING SYSTEMS GOVERNMENT POLICY GPS GROUP GUARANTEE HOUSEHOLDS HOUSING HUMAN RESOURCE MANAGEMENT ICT INCOME-GENERATING ACTIVITIES INDEBTEDNESS INFORMAL BORROWING INFORMATION NETWORK INFORMATION SYSTEMS INFORMATION TECHNOLOGY INFRASTRUCTURE MANAGEMENT INNOVATIONS INSTALLMENTS INSTITUTIONAL CAPACITY INTEREST PAYMENT INTEREST RATE INTEREST RATES INTERNATIONAL BEST PRACTICES INTERNET SERVICE PROVIDER ISPS KEY CHALLENGE KEY CHALLENGES LAWS LEGAL FRAMEWORK LENDER LIMITED ACCESS LOAN LOAN GUARANTEES LOAN OFFICER LOAN OFFICERS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCTS LOANABLE FUNDS MANAGEMENT INFORMATION SYSTEMS MARKET OUTREACH MARKET REACH MFI MFIS MICRO FINANCE MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE LOAN MICROINSURANCE MONEY TRANSFER MULTIPLE ACCESS NONPERFORMING LOANS OPERATIONAL COST OPERATIONAL COSTS OUTREACH OUTSTANDING LOANS OVERHEAD COSTS PACKET RADIO PACKET RADIO SERVICE PAYMENT SYSTEMS POINT OF SALE POINT-OF-SALE POLICY ENVIRONMENT PRIVATE BANKS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY PROFITABILITY PROVISION OF CREDIT PUBLIC FUNDS RATES OF INTEREST REGIONAL DEVELOPMENT BANKS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REGULATORY OVERSIGHT REMITTANCE REMITTANCES REPAYMENT REPAYMENTS RETAINED EARNINGS RURAL FINANCE SAVINGS SAVINGS PRODUCTS SAVINGS SERVICES SMALL BUSINESS SMALL BUSINESSES SMALL FARMER SMALL FARMERS SMART CARDS SYSTEMIC RISK TECHNICAL ASSISTANCE TECHNICAL SUPPORT TECHNOLOGY DESIGN TECHNOLOGY PLATFORM TELECOM TELECOMMUNICATION TELECOMMUNICATIONS TELECOMMUNICATIONS AUTHORITY TELEPHONE TELEPHONE PENETRATION TERRORISM TRAINING CENTRE TRANSACTION COSTS TRANSLATION UNION UNIONS UNIVERSAL ACCESS VILLAGE WHOLESALE FUNDING
Online Access:	http://documents.worldbank.org/curated/en/2008/12/16380059/maximizing-outreach-microfinance-nepal-case-central-technology-platform http://hdl.handle.net/10986/18908

Description
Summary:	This report addresses the establishment of a centralized information and communication technology (ICT) platform for the microfinance sector in Nepal. It has been shown from international experience that ICT improves the efficiency, transparency, and outreach of microfinance institutions (MFIs) and reduces operational costs. There is an opportunity in Nepal to implement similar solutions, and this report provides information on these solutions and offers recommendations for implementing them in Nepal. The microfinance sector in Nepal has many players, but these players have shown few real successes. The sector is largely unsustainable, subsidy driven, and fragmented to the extent that it might not meet the real needs of the country. This report presents a new paradigm for introducing ICT in the microfinance sector of Nepal. The centralized technology platform was chosen as opposed to telecom-led platforms due to its ability to resolve most of the pertinent challenges that Nepal's microfinance sector faces. The paradigm can help remove most of the constraints that have limited the growth of MFIs and kept them from becoming sustainable, moving out to remote and rural areas, and providing more loans to those that need them. In the traditional paradigm, MFIs acquire ICT in an ad hoc fashion and are able to use it only partially to automate their operations.

Maximizing the Outreach of Microfinance in Nepal : The Case for a Central Technology Platform

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