Mifos: Ending Poverty One Line of Code at a Time

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Presentation about Mifos OSS Microfinance MIS, given at the Open World Forum's Humanitarian Open Source track on September 23, 2011 in Paris.

Text of Mifos: Ending Poverty One Line of Code at a Time

  • 1. Mifos: Ending Poverty One Line of Code at a Time
    Humanitarian FOSS trackatthe Open World ForumParis; September 23rd, 2011
    Michael Vorburger, for Mifos Community

2. $ ls ~/presentation/

  • About Microfinance, a short introduction

3. Impressions a few photos from an India visit 4. About Mifos (briefly, more on request!)2
Mifos: Ending Poverty One Line of Code at a Time
5. $ whoami

  • Volunteer for Mifos since mid 2009, time permitting(java.net / mifosforge.jira.com & Wiki migrations; Workspace 2.0; Executable WAR; confs.)

6. Day job as Development Manager for Eclipse-based design time modeling workbenches at TEMENOSThe Banking Software Company. GIVING THIS PRESENTATION IN PRIVATE CAPACITYON ADAY OFF. 7. Lives & works in Lausanne, Switzerland. 8. http://vorburger.ch [email protected] @vorburger3
Mifos: Ending Poverty One Line of Code at a Time
9. $ file /poverty Hello World
Of total world population of 6.8 billion:

  • 880 million survive on less than USD 1/day (13%)

10. 1.4 billion survive on less than USD 1.25/day (20%) 11. 2.6 billion survive on less than USD 2/day (40%)International Poverty Line = USD 1.25 / day
Millions children die of hunger every year.
Source: World Bank Development Indicators 2008
Mifos: Ending Poverty One Line of Code at a Time
12. $ man microfinance

  • Microfinance, a proven poverty reduction strategy, provides financial services to very low-income unbanked clients, who lack access to traditional banking services (only loan sharks), to help them to help themselves, to:

13. Smooth irregular income flows 14. Provide cushions for emergencies 15. Expand economic activities 16. Prof. Muhammad Yunus(Nobel Peace Price 2006) founded the Grameen Bank in the late 1970s in Bangladesh, and scaled profitable microloans to millions of people. Quote: Our grandchildren will go to museums to see what poverty was like. (http://www.grameen-info.org/index.php?option=com_content&task=view&id=338&Itemid=375)5
Mifos: Ending Poverty One Line of Code at a Time
17. $ man microfinance

  • Microfinance Institutions (MFI) lend ~ $100-ish amounts (e.g. 12000 INR), repaid / collected in (bi)weekly over 12/18/24 months, so in 36/50-100 installments.

18. Microcredit customers are often women only (by MFI choice); money used for things such as bangles shop, family painting business, etc. 19. Loan Officers go out to meet clients, typically (bi)weekly to collect repayments. Customers dont come to branch offices to deposit or withdraw. LOs bring the collected money to BOs (and, in some cases,stay and sleep there!) 20. Typically ~ 98% loan repayment (recovery) rate; e.g. Nirantara in Karnataka/India 99.6% (of 7000 clients with 20000 Loans)6
Mifos: Ending Poverty One Line of Code at a Time
21. $ man microfinance

  • Solidarity Lending (Joint Liability model) is common, creating a bond among a Group of clients. - Centers are sets of Groups, managed by a few LOs in a local Branch, org. by Areas. Groups rural, meetings at e.g. group leader home, or a temple or community site; branches few rooms in small towns.

22. Products offered depend on country and respective regulations: In e.g. India today often only Loans, rarely Savings Deposit, but in e.g. the Philippines Savings accounts is more common. Growing trend towards broader financial services,incl.microinsurance (often life, some health), pensions, etc. 23. Typically tied to an educational programs: Week long Compulsory Group Training (CGT) introduction loaning; also stories read out at each group meeting, e.g. reg. infant hygiene.7
Mifos: Ending Poverty One Line of Code at a Time
24. $ man microfinance

  • MFIs vary significantly in scale and reach: from small NGOs (100s of clients) to mid-size non-profits (tens or hundreds of thousands; e.g. GrameenKoota [GK] in India using Mifos on >500000 Clients), to for-profits (e.g. publicly listed [non-Mifos] SKS Microfinance in India).

25. Interest rates in the 2030% range.MFIs typically borrow from traditional banks at around 8% - 12% interest (India); adding on top of it their operating costs, which are higher due to shorter collection cycles and almost doorstep service. 26. http://en.wikipedia.org/wiki/Flat_rate_%28finance%29 27. http://www.mftransparency.org/ 28. Challenges incl. (e.g. in India) regulatory uncertainty (Maligam report), or overheating with too many loans by competing MFIs and increasing defaulting problems (compounded by lack of Gov. ID)8
Mifos: Ending Poverty One Line of Code at a Time
29. group meeting (GK)
30. group meeting (GK)
31. group meeting (GK)
32. branch of GK
33. Loan Officer counting cash after returning from group meeting
34. Data Entry officer (Mifos)
BanashankariBranch Office
GrameenKoota (GK)
Mifos: Ending Poverty One Line of Code at a Time
35. Mifos Reports (BIRT, Pentaho)
36. 37. 38. Technology for Microfinance
Like any business, MFIs adopt technology to:

  • increase operational efficiency

39. scale better and faster 40. automate thousands of manual transactions 41. free up loan officers to reach further out 42. provide security and convenience 43. e.g.via mobile banking;Mifos M-Pesa interface! 44. know your customer (KYC), e.g. credit bureaus 45. lowers costs and risk 46. reduce paperwork 47. increases data integrity 48. 18
Mifos: Ending Poverty One Line of Code at a Time
49. Mifos Stats

  • 2004 11- 19: registered on SourceForge

50. 2006 -11: Official Launch and Initial Release at Halifax Global Summit 51. 2009 : Winner of JavaOne 2009 Duke's Choice Awardfor Best Java Technology for the Open Source Community 52. 2009/2010: Google Summer of Code (2009 & 2010) student programs 53. 2010 : 54. 8870 Product Downloads 55. 2906 volunteer hours from 25 volunteers 56. Software in use by 30 MFI serving 850,000 clients. 57. 2011: Grameen Foundation transitioned Mifos to a fully independent community-led project.About 256 database tablesaccording to SchemaSpy job on http://ci.mifos.org/schema/head/latest/
About 120'000 Lines of Code (NCSS, Non Commenting Source Statements) according to Sonar report on http://ci.mifos.org:9000/project/index/1
58. 20
Mifos Business Intelligence Suite
59. 21
60. 22
61. Mifos open source platform
Flexible back-end system powering the MFI, connecting them to innovation worldwide as it is built by the community:
Front-End Technologies

  • Mobile banking

62. Smartcard/POS devicesAdapted to your Needs

  • Localization

63. Rapid configuration 64. Local SupportOpen Mifos Architecture
Flexible & Open APIs
Centralized database
Financial Modules
Systems Integration

  • ERP & Accounting Software

65. HR Systems Service Innovation

  • ATM/SWIFT Networks

66. Remittances 67. Insurance Mobile Interfaces
Data Analytics
Reporting engine
Regulatory Compliance
Regulatory Compliance

  • Central Banks

68. Credit Bureaus 69. Ratings Agencies/RegulatorsTransparency

  • Donors/Funding Sources

70. Social performance measurement23
71. # nmap Mifos Deployments
In Progress Deployment
Live In Production User
72. Mifos Deployments

  • More than 850'000+ client accounts managed in Mifos deployments!

73. Nearly 30 MFIs in Production 74. All around the world 75. India 12 MFIs 76. Africa East Africa 8 MFIs | West Africa 5 MFIs | So. Africa 3 MFIs 77. SE Asia , MENA 78. Large 79. GrameenKoota (Bangalore, India) 450,000 clients 80. Enda(Tunis, Tunisia) - 140,000 clients 81. Small 82. Creocore (Mali) 26 clients, Nuru (Kenya) 1,400 clients 83. http://mifos.org/community/whos-using-mifos25
84. $ wget mifos
Learn more:

  • http://mifos.org/

85. http://bit.ly/mifos-videoMifosIn Action Intro. Video 86. http://mifosforge.jira.com & http://bit.ly/mifos-volunteer-bugs 87. Demo:http://demo.mifos.org:8080/mifos/(mifos/ testmifos)Get in touch!

  • Join our weekly developer callevery Wednesday at 1630 GMT.

88. Mailing List - http://groups.google.com/group/mifosdeveloper 89. Twitter - @mifos http://twitter.com/mifos 90. Facebook http://facebook.com/mifos.org 91. News http://mifos.org/community/news 92. IRC - #mifos on irc.freenode.net26
Mifos: Ending Poverty One Line of Code at a Time
93. $ Mifos Star Contributors
Volunteers help fight poverty in many ways across the globe. After 5 years of stewardship and funding from Grameen Foundation, Mifos is now a fully independent community-driven project. Volunteers and supporters are needed more now than ever. You could be one of them!
94. $ cat CONTRIB

  • This presentation was prepared with contributions from and reviewed by:

95. Edward Cable 96. Ryan Whitney 97. BinnyGopinath 98. Keith Woodlock 99. Udai Gupta 100. Thank you!28