The best microfinance solution! Sounds intriguing. But how much does the best microfinance solution actually help your business?
Before we dive into this, let’s have a look at what microfinance does and how it works. Microfinance is the extension of small loans to the very poor, in combination with other financial services, such as savings accounts, training, health services, networking, and peer support. This allows them to pursue entrepreneurial projects that generate extra income, thus helping them to better provide for themselves and their families.
In this way, microfinance allows families to work to end their own poverty with dignity. Microfinance programs around the world, using a variety of models, have shown that poor people achieve strong repayment records often higher than those of conventional borrowers. Repayment rates are high because, through a system of peer support used in many microcredit models, borrowers are responsible for each other’s success and ensure that every member of the group is able to pay back their loans.
How Microfinance Works
In many developing countries, the self-employed comprise more than 50 per cent of the labour force. Access to small amounts of credit at reasonable interest rates – instead of the exorbitant ones often charged by traditional moneylenders – allows poor people to move from initial, perhaps tiny, income-generating activities to small microenterprises. In most cases, microcredit programs offer a combination of services and resources to their clients including savings facilities, training, networking, and peer support. When these factors are taken care of, the best microfinance solution can help manage the operations better than ever.
In this way, microfinance allows families to work to end their own poverty – with dignity. Microcredit programs around the world, using a variety of models, have shown that poor people achieve strong repayment records – often higher than those of conventional borrowers. Repayment rates are high because, through a system of peer support and pressure used in many microcredit models, borrowers are responsible for each other’s success and ensure that every member of their group is able to pay back her loans.
Microfinance institutions (MFIs) fund small entrepreneurs in developing countries. These entrepreneurs run what are knowns as micro-enterprises. Since these entrepreneurs have no credit history, loans offered by traditional moneylenders are not available to them.
Why is a microfinance software important
Microfinance software has a lot to do with managing your business better than ever before. There could be many ways in which you can better your microfinance operations by using the best microfinance solution for your business.
There are so many things that can’t be done by the employees of an organization just by themselves. They need to focus on doing better things than just manage data all day long. In this case, the best microfinance solution can be their saving grace. When it comes to microfinance institutions, they are already doing the greater things that one can do to serve their community. So making their tasks easier and better should always be a priority. When an MFI chooses the best microfinance solution, automatically many aspects of their business gets taken care of.
Southtech’s Ascend Financials is exactly the perfect match for MFIs who are looking to make positive changes in their operations.
To start with let’s introduce to you what Ascend Financials does for you!
Whether you are a small MFI looking to make a change or the industry leader, our flagship product Ascend Financials is your one-stop microfinance solution. Ascend Financials is the only microfinance software in Bangladesh that helps microfinance institutions evolve into banks – it includes products from core banking to financial inclusion.
Our Microfinance Software Guides You All The Way!
The ultimate microfinance software in Bangladesh makes your daily operations easier than ever before by doing the following for your business.
Let’s look at a break down of our modules.
Our 3 mandatory modules are-
Center control- Sets up operational policies for all modules, including the Security & Administration Module
Sets up a chart of accounts and loan and deposit products for the organization
Security and Administration- Sets access rights for all the users of the system
Allows all housekeeping processes (e.g. end of day, weekend setting, daily back up etc.)
Dual control overall system administration functions
Multi-currency Accounting- Automatically manages multiple currencies into the base currency
Generates standard financial statements such as balance sheet, income statement, cash flow statement, etc. by the total overall organization, branch or project
Provides funding source-wise financial reports.
Our 3 remote modules are-
Internet Banking– Allows balance enquiry, printing account statements, transfer of funds from the account to account (including the account of other customers) and requests for cheque books
Branchless Banking– This Android-based mobile application allows product service officers (field officers) to collect loan repayments and deposits in remote locations using a unique registered mobile device, replacing collection sheets
Agent Banking– Directly acquires, tracks and serves customers through the Internet in the absence of a brick and mortar banking infrastructure
Is platform independent- can run in all operating systems since its developed in Java, Java EE and MySQL
Pre-configured processes allow fast roll-out of branchless banking
Digitization is everywhere. From the fingerprint scanner at your office to the fund transfer you just made within seconds through your mobile app, everything is being digitized now!
Today, you can witness many corporates, and micro-entrepreneurs utilizing microfinance digitization through financial technology.
So the question right now is….
Why should you future proof your Microfinance operation with a Microfinance Software?
We know how simple it sounds to go completely online through a microfinance system. But how realistic is it?
Can you manage all your branches online? Can you transfer data within seconds?
This is where microfinance software can make your job faster and easier. You can manage all your data online with just a click.