How to Digitize Microfinance Business?

The whole business world is trying to go digital. We utilize the strength of Digital Technologies to streamline our professional and business operations. Without the digitalization, none can survive in the rate race.

Financial Institutions are also the same line. Banking corporations have already digitalized their complete business modes and serving their clients. But other financial institutions like Microfinance Companies may not be taking advantage of the Digital Technologies.

Why is Digitalization Important?

Do you know that around 4.7 billion people use internet to get access the Digital World? In the last 12 months, there are more than 310 million new internet users were added. Going digital means you have the chance to present your business to this vast ocean of people. And if your products and services are good, then you will get your clients very easily from the digital domain.

How to digitization microfinance business
How to digitization microfinance business

How to Go Digital with Microfinance Business?

There are many procedures to go digital with any kinds of business whether it is Microfinance or banking. The first thing is to make a great website for your company, and the second thing is to invest in implementing proper digitalized system to control the business.

What is Digitalized System?

A digitalized System is to take care of all business related operations for the Microfinance business. It will help you to control your overall business scenario, from opening and managing of accounts to supervise over loan sections, getting repayments and many more.

Digitalized System is the software that any business can utilize and get benefit. In plain words you can call it as Microfinance Software.

How Microfinance Software can help the finance business?

Account Management

Microfinance Companies offer savings and other types of accounts for the poor and underdeveloped sections of the society. Those accounts are different from the banking savings accounts. Unlike banking accounts, Microfinance offered savings accounts don’t come with any kinds of maintenance charges. These are mainly ‘zero balance accounts’ that we are talking about.

Best Microfinance Software would assist MFIs to take care of the accounts related activities like these.

  • Opening of Accounts,
  • Documentations,
  • Management,
  • Maintenance,
  • Interest rates calculation.

Loans Management

Microfinance Companies offer microloans. These kinds of credits are quite different from the bank provided loans. Banks generally provide big ticket loans whether MFIs offer small amount of loans. The rates of interest of micro credits are also less. Most interestingly, MFIs does not demand any kind of collateral or securities for providing loans.

Advanced Microfinance Software has the ability to manage all kinds of microloan operations. It helps in streamlining the following areas.

  • Loan Application Process,
  • Loan Documentation,
  • Loan Amount and Rate of Interest Calculation,
  • Underwriting, Approval and Disbursal,
  • Money Transfer to the client’s accounts,
  • Creation and validations of repayment schedules,
  • Send messages and notifications to the clients.

Well, these are the average details of Microfinance Software features. But the list does not simply ends here. There are tons of benefits that microfinance software can offer to any MFI. All those benefits can help any financial organization to go digital with their business processes and get growth.

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