Microfinance is a rapidly changing industry. Due to the ongoing evolution of the industry, MFIs face difficulty in defining business objectives, needs, priorities and limitations for acquisition of an MIS solution. There is lack of standardization within the microfinance sector, and business practices of MFIs differ from each other. Consequently, software developers face problems in coming-up with an MIS that can be used by most of the MFIs. Common failures are due to ill defined business process and procedures.
There is a shortage of skilled professionals who can understand technology as well as the microfinance industry, and be able to suggest the right solution. Such
professionals can act as a bridge in filling the gap between use of ICT and microfinance operations.
Majority of the MFIs do not have the technical capacity and required resources to understand, adopt and implement MIS solutions.
Most MIS solutions are not affordable to the majority of MFIs.
In some cases there is a lack of vision and commitment from the management towards use of technology
Integration is becoming one of the big challenges, as most of the MIS solutions for microfinance are built on weak platforms, thus not being flexible and scalable enough to integrate with emerging technologies and delivery channels.
There is poor information sharing on successful MIS deployments within the microfinance as well as the financial sector.
ICT vendors still do not see the tremendous business opportunity and growth in the microfinance industry thus are reluctant to invest and establish strategic partnerships with MFIs.
Power and communication infrastructure, which is the foundation for hosting ICT services, is inadequate in those areas where MFIs operate.
Non-availability of efficient technical support by vendors