How to Digitize Microfinance Business?
Why is Digitalization Important?
Do you know that around 4.7 billion people use the 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.
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 accounts to supervise over loan sections, getting repayments, and many more.
Digitalized System is the technology that any business can utilize and get the benefit. In plain words, you can call it Microfinance Software.
How Microfinance Software can help the finance business?
Microfinance Companies offer savings and other types of accounts for the poor and underdeveloped sections of 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 banking Software would assist MFIs to take care of accounts-related activities like these.
- Opening of Accounts,
- Interest rates calculation.
Microfinance Companies offer microloans. These kinds of credits are quite different from bank-provided loans. Banks generally provide big-ticket loans whether MFIs offer a small number of loans. The rates of interest of microcredits are also less. Most interestingly, MFIs do not demand any kind of collateral or securities for providing loans.
Online 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.
After providing loans, it’s time to apply loan recovery measurements. Therefore, there are huge tasks that the MFIs need to take care of. An excellent Microfinance Software comes with all kinds of loan recovery tools and modules that are essential to managing any loan recovery procedures. Check the below-mentioned details to get a glance at loan recovery.
- Making Printout of Loan recovery schedules and sends a copy to the clients via mail or E-mail,
- Assign loan recovery tasks to the field agents,
- Send messages and notifications to the borrowers for the next repayment date,
- Calculation of late fees,
- Creation of reports regarding payments and non-payment of loans,
Well, these are the average details of Microfinance Software features. But the list does not simply end 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