Colin,

Its a great question, and I think you (and the broader group) should
consider the work that's already occurred in this space.  I looked at this
broader question of how to use technology, backend systems, front end
devices, etc while at Grameen Technology Center, a part of the Grameen
Foundation starting in 2001 because Mohamed Yunus was articulating the same
challenges back then.   What came out of that analysis and work with dozens
of Microfinance institutions around the world, was the birth of the MIFOS
projec <http://mifos.org>t - Microfinance OpenSource Project.

Moreover, CGAP (consultant group to assist the poor, part of the World Bank
Group) has also looked at this question with a well done series of technology
white papers <http://technology.cgap.org/category/topic/mobile-banking/>, an
online portal to existing banking systems, etc.   Gates
Foundation<http://www.gatesfoundation.org/financialservicesforthepoor/Pages/overview.aspx>began
a program a few years ago looking at how to use mobile telephony in
developing countries to leapfrog into mobile transaction systems (mobile
banking in its truest form).  There are many resources online include my
former colleagues at Grameen Foundation talking about this
subject<http://tedxseattle.com/2010/04/16/fiona-lee-and-david-edelstein-%E2%80%93-innovation-in-information-access%E2%80%A8-harnessing-the-potential-of-the-mobile-phone/>at
TedX.  Mobile banking, or transactions is where most of the focus is
on
now.

As the founder of the Mifos effort, I've also seen how challenging it is to
create a generalized banking information system.   While Microfinance
appears to be "banking simplified", it actually has a number of elements
that make it more difficult.  Indeed, this is one reason why there is not a
"gold standard" system used by a large number of the 12,000 MFIs out
there.   In my work globally since I left Grameen Foundation, the lack of
good systems is a huge challenge, but one well recognized by the
Microfinance community.   How those system connect to the mobile
transaction/banking systems is the area where many are focused right now.

While the ODK platform is one that is highly relevant, my take is that at
the current price level (above $200 per phone in country) it is not yet
attractive enough for MFIs to use for each field officer.  As the price
falls (yes $100 phones in Kenya and SA!!) and the ODK platform matures, we
should be looking for the sweet spot for microfinance operations.   Creating
an integrated approach with any mobile based front end like ODK should
probably go back to some of the work that my former colleague Tapan
Parikh<http://people.ischool.berkeley.edu/%7Eparikh/publications.html>has
championed (Tapan was a founding member of this echange group I
believe), namely the interaction of paper forms and mobile devices - i.e. a
focus on what is appropriate technology.

Here is a technical starting point - Integrating ODK with Mifos and for the
data collection process that occurs with the field officer in front of the
client - potentially the loan intake/approval form.   This could be further
leveraged for metrics and evaluation approach that is so important for
demonstrating that Microfinance is having a net positive effect on the
poor.  Which, at the end of the day is why any of us is doing this work.

Regards,

- James Dailey
Seattle
CTO, MicroEnergyCredits.com <http://www.microenergycredits.com>
CTO, VillageReach.org <http://www.villagereach.org>



On Thu, Sep 30, 2010 at 9:16 AM, Colin Dixon <ckd at cs.washington.edu> wrote:

> Having just listened to the podcast, it sounded like a big part of making
> the bank model work was the cost of banking computers and software.
>
> Is this a big chance to do an OpenMRS/ODK-style thing for banking?
>
> --Colin
> -- Sent from my Palm Pre
>
> ------------------------------
> On Sep 30, 2010 8:50 AM, Yaw Anokwa <yanokwa at gmail.com> wrote:
>
> Say you want to make loans to millions of poor women in the developing
> world, to help them climb out of poverty. Is it OK to raise money from
> rich investors, who expect to make a profit?
>
> Muhammad Yunus, the father of microfinance, says no. If you have
> investors who expect profits, you'll ultimately turn into something
> more like a loan-shark than a do-gooder.
>
> Vikram Akula, founder of SKS Microfinance ? a company that had an IPO
> earlier this year ? says raising money from profit-seeking investors
> is the only way to spread microfinance quickly around the world.
>
> NPR's Planet Money did a great podcast on the different viewpoints at
> http://is.gd/fCo5h. You can also watch the video of Clinton Global
> Initiative debate at http://is.gd/fCnWl.
>
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-- 
James Dailey
skype: jdailey
+1 206 234 8435 mobile
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