IBM and the Mifos Initiative

Last month, IBM agreed to partner with the Grameen foundation in working with the open source Mifos platform. Mifos is a MIS program being used at microfinance institutions around the world. This technology component is massively important because it means more cost effective lending, which means there can be more lending, which means they can reach more entrepreneurs and really affect change.

It is estimated that only half of the MFI’s around the world are currently using automated systems for their loan processing and administration. In some ways I could see how top-of-the line software wouldn’t be the top priority in say a village where electronics may not be as prevalent, or where the volume of small business owners isn’t as great. Still having a solid streamlined database managment system is essential for the expansion of microfinance.

Props to Grameen for their emphasis on technology in pushing MFIs to the next level, specifically their insight in using an open source platform. Further, I think that IBM is setting an example, and I think that more companies should get involved with not just throwing money at a cause, but instead using their industry experience and know how to make this world a more equitable place.

Somedays, I really wish I was a programmer, It would be cool to program for social change.