Benefits your microfinance institution can gain with cloud technology
Cloud-based technology or the cloud delivers significant business benefits. Because countless businesses are reaping the benefits already, the results are well documented. When a business or organisation replaces its dated, on-premise IT system with a modern cloud-based platform, they benefits in three key ways according to IBM: flexibility, efficiency and strategic value.
For microfinance institutions, the value of cloud technology leads to becoming more efficient, making informed decisions, growing and reaching more clients in remote, hard-to-reach communities. Your microfinance institution benefits from cloud technology both in the short-term and long-term. The benefits are especially significant for growing institutions. Take the example of opening a new branch.
Become more efficient
With cloud technology, your financial institution can open new branches quickly and without heavy capital investment. Each branch only needs to have an Internet connection and a laptop to access your cloud-based core banking system. This speeds up the time it requires to open a new branch — an access point for financial services
Make informed decisions
Using real-time data that is consolidated from all of your branches, you can create reports that show you which branches are overflowing with demand for your services. This gives you an overview of your market and where it makes the most sense to open a new branch — for your business and for your community.
Reach more clients
With the ability to open new branches quickly and place them wisely throughout your market, your microfinance institution can reach more clients in a more efficient manner. This is critical to supporting your communities and reaching your financial inclusion mission.
Myths about cloud technology are misleading business leaders
Despite the proven benefits of cloud technology, skeptics remain. As Vice President and Gartner Fellow Daryl Plummer states, “Cloud computing represents one of the most misunderstood, yet valuable, innovations in current IT and business strategies.” In a report written by Gartner, How and Why Leaders Must Implement Cloud Computing, some of the most common myths are:
- Cloud is less secure than on-premise systems
- The cloud is a data centre
- Cloud is not for mission-critical use
- Cloud should be used for everything
- “The CEO says so” is a strong enough cloud strategy
While myths about cloud technology are widespread, experts like David Cearley emphasise that “Organisations that do not have a high-level cloud strategy driven by their business strategy will significantly increase their risk of failure and wasted investment.”
How to successfully move your microfinance institution to the cloud
Replacing an on-premise system and going to the cloud is not just about technology. To reap the full benefits of the cloud, your microfinance institution needs to align your technology strategy with your business strategy, create a change management plan, get buy-in from all areas of your business, develop an implementation and training plan, etc.
Oradian works with microfinance institutions one-on-one through each step of digital transformation from on-premises systems to our cloud-based core banking platform. To get started, contact us and we will get back to you shortly.
In the meantime, there are useful guidelines and helpful thought exercises that can help you as a leader of a microfinance institution prepare your move to the cloud.
1. Simplify your administration
If administration consumes too much of your staff’s time, they don’t have enough time to dedicate to more important tasks. For example, it can take your staff weeks to create one monthly portfolio report. This is because they are creating the reports manually: collecting loan information, consolidating transactions, and calculating key metrics like PAR and portfolio size by hand. By the time they have finished, they must start the process again.
With Oradian’s digital MIS for cooperatives, your staff can create accurate reports with real-time data in seconds, with just a few clicks. There is no time-consuming processes at the end of each month because reports are created automatically.
2. Focus on your portfolio
Your loan officers need to focus on your portfolio: collecting payments for existing loans and issuing new loans. To do so, your loan officers must plan meetings with their members, findtheir members’ loan history, calculate interest payments ahead of time and make a list of the payments they need to collect.
With Oradian’s digital MIS, your loan officers can use the client management tool to instantly compile all the relevant information for them. In seconds, they have an accurate list of payments to collect and from who.
Before leaving the office for the field, your loan officers can automatically send an SMS message using Oradian’s digital MIS to all of their members with their balance and loan payment information.
3. Serve more members
The Philippine microfinance market is competitive and cooperatives must continue to grow theirmember base and serve their communities better. However, adding new members can be a time-consuming process in itself. If the onboarding process takes too much time, the potential member will go to another cooperative for service instead.
Oradian’s digital MIS lets you instantly generate forms to streamline the new member process. Your staff can create customised loan application forms and new member forms from their digital MIS dashboard. The forms can be printed or filled out directly on the computer. Then, all the documents are stored on the new member’s profile – organised and accessible.
How Oradian makes it possible
Oradian provides a digital MIS for cooperatives, rural banks and microfinance institutions. It’s an all-in-one solution that enables our customers to become more efficient, dedicate more time to collecting payments and issuing new loans and serving more members. Oradian’s digital MIS enables you to be ahead of the competition and face the future with confidence.