Virtual Conference Day 1: Capacity Building

Today’s conversation is moderated by George Conard and Charlene Balick of the Grameen Foundation.

During our recent workshop series, a consistent theme across all regions was the notion that adoption and usage of back end systems could be done more successfully and for less money if (a) MFIs had better internal skills to work with technology and (b) if vendors gained a more intimate knowledge of MFI operations and requirements. Would capacity building at MFIs and vendors help alleviate technology headaches at MFIs?

Participants repeatedly expressed that costs could be reduced if MFIs had improved capacity both among managers and staff. MFI leadership needs to be able to better plan for and work with technology, both at initial phases of a project and on an ongoing basis as the business changes and expands. Likewise, MFI staff need to be better equipped to work with technology and technology vendors.

Examples of skills needed at MFIs:

• Being able to link technology to business goals and strategy – having an improved IT strategy (or one at all!)
• A champion at the executive level with enough knowledge of the technology project to help advocate for the best investment
• A knowledgeable and dedicated project manager for IT projects
• Ability to clearly express business requirements to the vendor as linked to well-defined operational process
• Ability to review and negotiate a contract and plan for an ongoing relationship with a vendor

Conversely, it was commonly expressed that many vendors working in the microfinance space have a limited knowledge of the unique characteristics and intricacies of microfinance products, business operations and characteristics. If the vendors knew the business better, costs could be reduced and back end systems could be designed better and implemented and utilized more successfully.

How can the working relationship between vendors and MFIs be improved – especially with an eye to avoiding large cost overruns and enabling MFIs to effectively use back end systems to achieve growth and operational efficiencies and cost reduction goals?

Please share your thoughts and ideas:

1. If training and capacity building is needed at the MFI level to better work with technology, who is responsible for providing it and where can funding to pay for this training come from? 
2. What are some ideas for how vendors can better learn the MFI space? Who is responsible for teaching them? What are some ways that they can learn on their own?
3. What other ideas do you have to improve the interactions between vendors and MFIs – especially with an eye to reducing costs, capturing greater value from the system, and reducing the risks that can come with failure of system implementation or the wrong system in use?
4. Where does the responsibility lie: Are MFIs responsible for educating themselves on the business skills in working with technology? Or are vendors responsible? Who else can play a key role and how? How can this skill building be paid for? 
5. What do you think about investors and funders setting aside a portion of the funds to pay for training and capacity building – as a protection to their investment?
6. How could TA Providers play a stronger role?