Online microfinance operation in rural areas – what comes to mind when you hear these words? You may think the problem is taken care of, but your field officers might think differently, especially if they have trouble operating the software due to a bad internet connection. So the problem remains. But don’t worry; here comes a hybrid software to save your day!
You might wonder, what place does not have an internet connection today? Literally, there are numerous rural areas without any internet connection. Many even don’t have good mobile networks—for example, in rural areas in Africa.
As a matter of fact, most microfinance mostly depends on rural communities to operate. Now think, will your online solution be useful if you send your field officers to those rural places? We don’t think so.
Now what? Won’t you automate your microfinance because of bad internet situations?
Well, if you have a hybrid solution, it doesn’t matter where you are; you won’t have to run your MFI manually. Doesn’t it already sound fascinating? It really does and is a blessing for those running MFIs in rural areas.
Now let’s get to the detail, why choose a hybrid core banking solution for your MFI?
What is a Hybrid Core banking Solution?
Simply put, a hybrid core banking solution is software that can function both online and offline. Let’s elaborate on this.
Since microfinance institutions worldwide operate mostly in rural areas, internet connection is a big issue for them. But offline desktop-based solutions are no good either. So, in this situation, the industry needed an alternative that could function both online and offline. Here comes a hybrid software!
A hybrid software, when installed on your device, functions online when connected to the internet. But what happens when there is no internet connection?
Well, without the internet, it functions offline and never gets stuck or has any loading issues. It even lets you work as you work while connected to the internet. Isn’t it amazing?
It is amazing! How is this even possible?
Well, when you have no internet connection, the app or the software automatically becomes an offline solution like many other offline apps or software on your devices. And it starts using the device’s space to record data, letting you do what you need to do.
But the fact is, whatever you record offline is not updated on your server. Does that sound scary? Well, don’t worry. The software will automatically update your server as soon as it gets online.
Isn’t it what the microfinance industry needs? Yes, it is. So, if you have hybrid software, you will never have to consider internet issues. And it doesn’t even matter where you operate.
Hope you understand what hybrid software is and how it functions. Now let’s learn how a hybrid core banking solution can help you in detail.
3 Benefits of Having Hybrid Software for your Microfinance
The way we have explained in the previous section, I hope it clears the reasons why you should choose a hybrid software for your MFI. But still, if you are confused, we will explain it to you more precisely.
There are countless benefits of having hybrid software for your microfinance. However, we will talk about 3 of the most important benefits. Let’s not waste any more time and get to the business. Shall we?
Operate MFI Digitally No Matter Where
MFI owners often complain that they don’t get much out of an online core banking solution. It is actually true because if you have an online solution in place, but your field officers cannot operate due to an internet connection, what will you get?
For example, if you are operating in rural Africa, many of those places are still away from the blessing of an internet connection. Now you have an online core banking solution. It is fine when you are in your office since you have internet. But what will happen when your field officer goes to collect repayments in the rural area?
They won’t be able to update their work and repayments in the software on-site. They will have to maintain collection sheets as always. And then, they will make the entry in your system later. It is a waste of time and a waste of man hours.
However, if you have a hybrid solution, you don’t need to think about where you are operating. Your field officers can collect the repayments and make the entry from where they are. In simple words, with a hybrid solution, you are 100% functional no matter where you are.
Have you ever thought about the man-hours wasted in manual work? Even if you have desktop-based software, you need to make the entry of all those work manually.
Similarly, if you have a fully online solution but need to update your repayments after returning to the office, we cannot call this automation.
Now think how much time every day’s entry takes. A lot of time, for sure. But why would you do that if you have an option ready for you? With a hybrid core banking solution, it is actually possible. And you can get all the benefits of digitization. You can save a ton of man-hours and focus on improving the repayment rates.
Save Operation Cost
You already know that a hybrid solution makes your operation fully automated no matter where you operate. It doesn’t matter if you have an internet connection or not. With it, you can go truly paperless.
So, eventually, you save a significant amount of money on paper and space. with hybrid CBS, you don’t need papers because you can record and make an entry on your software even if you don’t have an internet connection. Besides, you don’t need any space to keep those papers like big offices used to have.
On the other hand, with a hybrid core banking solution, you save man-hours. Simply put, you need fewer people to manage the work. Thus, you save a lot of money.
Hope this helps you understand why you need hybrid software for your microfinance operation.
Looking for a Hybrid Core Banking Solution?
Explore Southtech’s Ascend Financials