MANAGEMENT INFORMATION SYSTEMS (MIS)
The most common technology applied by MFIs is the management information system known as MIS. MIS is an integrated computer-based application used to access useful, timely and accurate information to allow the user to make appropriate decisions, and manage information effectively and efficiently. MIS includes modules such as loans portfolio tracking, human resources, internal control, accounting, and financial analysis (Grant, Hackney & Edgar, 2010). MIS is often one of the major factors that enable MFIs to achieve significant growth. “It is difficult for an MFI to upscale significantly and maintain the transparency and accuracy of its credit portfolio with no MIS,” (Chatterjee, 2010) .
PERSONAL DIGITAL ASSISTANTS (PDA)
A (PDA) personal digital assistant, also recognized as a palmtop computer, is a mobile device that functions as a personal information manager. MFIs employ PDAs to ease processing of loan, improve loan officer competence, and add to data access and accuracy in the field. To get the maximum benefits from PDAs, MFIs should have a stable MIS, and high-speed access to data from their branches (Grant, Hackney & Edgar, 2010).
SMART CARDS
Smart Cards are wallet-sized plastic cards have an embedded microchip that allows data storage, and works like an electronic passbook that allows MFI clients to carry all their related information on this microchip. Smart cards are used to manage savings accounts, disburse loans or make transfers (Lytras & Ordonez, 2010).
Reliable electrical power for card readers, software integration between card readers and the central management information system, together with processes, policies, and staff resources for handling lost, stolen or damaged cards are required prior to the introduction of smart cards (Chatterjee, 2010).
POINT OF SALE (POS)
Point of sale (POS) is a device or system often linked to computers, bankcard readers, or even mobile telephones that are located at a physical location such as a retail outlet, in order to perform an electronic transfer from one account to another or from a customer to a retailer. Some MFIs have implemented this technology in order to increase the security of financial transactions, reduce transaction cost in order to serve clients, and to reach new areas without branch infrastructure (Lytras & Ordonez, 2010).
MOBILE PHONES
Mobile banking is a way for clients to perform balance checks, account transactions, payments, etc. using a mobile phone. Mobile phones offer a new and speedily developing technological alternative delivery channels to extend financial services to those excluded from formal financial systems. Mobile phones allow clients to call into an automated system to conduct business transactions and to access and request information. M banking to date has largely been driven by mobile network operators and, to a lesser extent, by some banks. MFIs have not played a significant role in introducing this technology (Grant, Hackney & Edgar, 2010).
AUTOMATED TELLER MACHINE (ATM)
An automated teller machine (ATM) or cash machine is a device that provides the MFI clients with access to financial transactions in a public space, without the need for a bank cashier. MFIs consider ATMs when there are high transaction volumes, …