Microfinance Institutions reach out to rural India

New Delhi: Microfinance Institutions (MFIs) are now using mobile phone technologies to make it more convenient and secure for the users. This comes in as an effort to increase the reach of micro-financing into rural India.

A recent example is Cashpor India, which has partnered with the Israel-based ClassifEye to adopt their software-based fingerprint authentication technology that enables the MFI�s agents to carry out transactions competently. Cashpor India, with its three lakh active loan clients and a range of Rs 150 crore is navigating the service in parts of Uttar Pradesh and Bihar, reported Business Line.

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David S. Gibbons, Chief Executive Officer, Cashpor India, said, "Rural women are keen to use technology if it makes their lives better. But reaching rural populations with cost-effective, appropriate technology and products in a financially sustainable manner is a big challenge. Solutions offered by ClassifEye will aid in monitoring operations, taking more informed management decisions and in planning timelier follow-up."

ClassifEye's imaging technology uses camera phones to deliver secure services for customers served by MFIs. Customers can access a broad range of financial services that are handled by the MFI to manage loans, make deposits and execute other operations via field agents who are equipped with Internet-enabled cellular phones. The phones have ClassifEye�s software downloaded on to it.

Rami Cohen, Chief Executive, ClassifEye, said, "ClassifEye's solutions will allow tens of millions of rural Indians to access services that were previously out of their reach. Similarly, many vendors and merchants will be able to gain access to new markets of hundreds of millions of people, resulting in new opportunities for microfinance and commerce throughout the developing world."