Comments on: FrontlineSMS:Credit http://rachelstrohm.com/2009/10/16/creditsms/ Africa • Culture • Design • Economics • Microfinance Sun, 21 Feb 2010 22:13:51 +0000 http://wordpress.com/ hourly 1 By: rachelstrohm http://rachelstrohm.com/2009/10/16/creditsms/#comment-105 rachelstrohm Wed, 28 Oct 2009 15:07:49 +0000 http://rachelstrohm.com/?p=285#comment-105 Thanks! I'm pretty excited. : ) Thanks! I’m pretty excited. : )

]]> By: Roving Bandit http://rachelstrohm.com/2009/10/16/creditsms/#comment-104 Roving Bandit Wed, 28 Oct 2009 15:05:37 +0000 http://rachelstrohm.com/?p=285#comment-104 Congrats on the new job, looks very interesting. Mobile transactions are the future! Congrats on the new job, looks very interesting. Mobile transactions are the future!

]]> By: Development wishlist « Africa • Culture • Design • Economics • Microfinance http://rachelstrohm.com/2009/10/16/creditsms/#comment-90 Development wishlist « Africa • Culture • Design • Economics • Microfinance Fri, 23 Oct 2009 18:37:29 +0000 http://rachelstrohm.com/?p=285#comment-90 [...] discourse on innovation balanced with discourse on not reinventing the wheel. I’m obviously not anti-innovation.  People are doing some great thinking on how the constraints of poverty both necessitate and [...] [...] discourse on innovation balanced with discourse on not reinventing the wheel. I’m obviously not anti-innovation.  People are doing some great thinking on how the constraints of poverty both necessitate and [...]

]]> By: Beating Back the Cynicism « No Cynics Allowed http://rachelstrohm.com/2009/10/16/creditsms/#comment-84 Beating Back the Cynicism « No Cynics Allowed Wed, 21 Oct 2009 17:47:52 +0000 http://rachelstrohm.com/?p=285#comment-84 [...] next discusses the potential for a mobile (and ideally open source) payment system for microfinance. It goes on to discuss some parameters that would help and why this would be a good innovation. [...] [...] next discusses the potential for a mobile (and ideally open source) payment system for microfinance. It goes on to discuss some parameters that would help and why this would be a good innovation. [...]

]]> By: rachelstrohm http://rachelstrohm.com/2009/10/16/creditsms/#comment-79 rachelstrohm Mon, 19 Oct 2009 17:57:45 +0000 http://rachelstrohm.com/?p=285#comment-79 Hi Mark! Donor perception is a good question. I'm not working for CreditSMS, so I don't know anything about what their interactions with donors or other funders have been like, but I would imagine that the combination of the popular approaches of appropriate tech & microfinance, as well as the real potential for increased efficiency of transactions, is really drawing some attention. It's a good historical moment for moving into widespread electronic transactions & record keeping in microfinance, I think. M-Pesa's proven it's possible, and the variety of MISes coming out recently are an encouraging step towards better records - and CreditSMS could bridge the gap between these two technologies nicely. (Also, your comment about it being an uphill battle to introduce tech into some MFIs is right on. FINCA-DRC had a whole bank of computers used by loan officers to write their reports, but they weren't connected to the internet and had had their USB ports removed to prevent anyone from introducing virus-filled flash drives, so they were basically expensive typewriters. Just having the tech doesn't guarantee that it'll improve productivity!) Hi Mark! Donor perception is a good question. I’m not working for CreditSMS, so I don’t know anything about what their interactions with donors or other funders have been like, but I would imagine that the combination of the popular approaches of appropriate tech & microfinance, as well as the real potential for increased efficiency of transactions, is really drawing some attention. It’s a good historical moment for moving into widespread electronic transactions & record keeping in microfinance, I think. M-Pesa’s proven it’s possible, and the variety of MISes coming out recently are an encouraging step towards better records – and CreditSMS could bridge the gap between these two technologies nicely.

(Also, your comment about it being an uphill battle to introduce tech into some MFIs is right on. FINCA-DRC had a whole bank of computers used by loan officers to write their reports, but they weren’t connected to the internet and had had their USB ports removed to prevent anyone from introducing virus-filled flash drives, so they were basically expensive typewriters. Just having the tech doesn’t guarantee that it’ll improve productivity!)

]]> By: Mark Palmquist http://rachelstrohm.com/2009/10/16/creditsms/#comment-77 Mark Palmquist Sun, 18 Oct 2009 15:49:20 +0000 http://rachelstrohm.com/?p=285#comment-77 I would be interested to hear something about donors' perspectives of credit SMS. As an individual donor I specify that MFIs maintain detailed accountability for all loan activities. The model of loan officers managing peer groups, face to face, although costly, is a minimal level of supervision. Once we get past trusting the loan officers we can go forward with funding MFIs. With SMS introduced into the model we have a entirely new scenario for verification and due diligence. If SMS can be implemented reliably, both in reality and in perception, the cost reduction could be a really good thing. The MF clients that I have met all live analog lives and it seems like an uphill battle to radicalize the process with high technology. Do you feel that the donors are on board with credit SMS? I would be interested to hear something about donors’ perspectives of credit SMS. As an individual donor I specify that MFIs maintain detailed accountability for all loan activities. The model of loan officers managing peer groups, face to face, although costly, is a minimal level of supervision. Once we get past trusting the loan officers we can go forward with funding MFIs. With SMS introduced into the model we have a entirely new scenario for verification and due diligence. If SMS can be implemented reliably, both in reality and in perception, the cost reduction could be a really good thing. The MF clients that I have met all live analog lives and it seems like an uphill battle to radicalize the process with high technology. Do you feel that the donors are on board with credit SMS?

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