The growth of Micro-Finance Institutions (MFI) in India is rapidly boosting up in this current age of digital technology. In the last year, MFI has shown a positive growth rate of 11.6 percent in India. The working procedure of MFI can get boosted digitally with the help of efficient microfinance software. There are many options available in the market where an MFI can choose its appropriate software type.
Usually, an established or new MFI can choose to build its software from three main sources;
- Open Sources
- Proprietary Sources &
- Hybrid Sources
All these sources are efficient to deliver quality software for microfinance operations using various technological supports. However, choosing the second option i.e., the proprietary source for developing the MFI software can provide the best results than other options.
Explaining Proprietary Software
Proprietary software simply means the software which is developed by an efficient software development company. The company will have skilled staff and quality knowledge to build the software efficiently. Often these companies provide the demo of microfinance software to their clients for letting them know about their services. It’s the right choice to build the MFI software from a software development agency as it can provide you with customization benefits along with flexibility. In India, microfinance institutions are choosing proprietary software for these detailed benefits.Â
Now, let us understand why the working mechanism of proprietary software is so efficient.
The Working Mechanism of the Software
Ã‚ The agencies that develop MFI software for their clients are having updated knowledge about the industry. Microfinance institutes in India are playing important functions in financial inclusion. Hence, these agencies build the software upon the principle of financial inclusion at their core. These agencies offer attractive microfinance software price structures for small MFIs to have robust growth.
Customization algorithm: the developing agencies are working with the best people to provide efficient software for their clients. These agencies are helping the MFIs to get customized algorithms that can handle the operation efficiently. The agency will optimize the workflow to ensure the smooth functioning of the institution through the software.
Simplify complex business model: the working procedure of MFI is quite complex as it includes various rules and regulations. When an MFI chooses to get software from an agency then it would simply ease the process. The agency would provide technical support and assist the MFI s staff regarding the software installation.
After knowing the working mechanism of proprietary software, let us must understand the key advantages of this software.
Advantages of Microfinance Software
Besides simplifying the working process, there are many advantages included here when an MFI chooses to get proprietary software. Some of them are detailed below;
- Customized Loan Management System
Ã‚ MFIs mainly deal with small loans and allow the borrowers to repay the loan through some monthly installments. Therefore, tracking the loans becomes an essential feature in these institutions. The proprietary software is having a customized loan management option where the MFIs can track their loans clearly.
The software will update the loan repayment option regularly after getting the installments from the borrowers. Nowadays, various agencies are providing the option for Microfinance software free download to make details about customization before installing an actual one.
- App-Based Loan Collection
As the field staffs visit various places to collect regular payments from the borrowers thus the software must provide app-based solutions. Choosing the right proprietary software can provide the MFIs to have all the app-based features. Currently, MFI software-providing agencies are proving app-based solutions to collect loans and record them in real-time.
- Automated Risk Assessment
Profiling the borrowers is an important area in MFIs before distributing the loans. With proprietary software, the process of risk assessment would get automated by verifying the borrowers’ profiles. The process would not take much time and hence it powers the MFI to distribute the loans on time.
Ã‚ Finally, after going through all the details about proprietary software, many key highlights have emerged regarding its wide popularity. Getting strong security features and customized facilities are the two main things that made proprietary MFI software widely popular. But, choosing the right agency is very essential for the software as it will provide long-term support. Checking the key lists and services the agency will offer thoroughly can benefit you to get the best software for MFI operation.