Middle-East Journal of Scientific Rearch, 17(3), 374-381, (2013)

 

APPLYING TECHNOLOGY ISSUES IN MICROFINANCE OPERATIONS

 Nabilah Rozzani, Rashidah Abdul Rahman, Intan Salwani Mohamed and Sharifah Norzehan Syed Yusuf

 

Abstract  

This paper identifies and analyses the issues surrounding the current operation of the microfinance institutions. A review of past literature was conducted and it was found that the issues of data flow and security, access to credit, as well as cost were restricting the microfinance institutions from properly adopting technology into their operations. Hence, proper structuring of both core and additional system of technology had been proposed through the implementation of Management Information System, client-facing technology and also process automation technology. Hence, proper structuring of both the core and additional systems of technology has been proposed through the implementation of the Management Information System, client facing technology, as well as process automation technology. Although the findings reveal that the loopholes caused by the various issues surrounding Islamic microfinance operations could be solved with the advancement of technology, many microfinance institutions are rejecting the implementation of technology due to the realisation of the high cost and lack of participation from clients, which, in turn, affects the demand and supply in the market.