MFIs urged to tap into technology for growth

Mr James Agada, a Director at Computer Warehouse Group (CWG) Ghana Limited has urged Microfinance institutions (MFIs) to make the most of the opportunity that technology has created in the financial ecosystem to grow their businesses.

He said MFIs could utilise the benefits of technology to grow their businesses at a much lower cost, which would go a long way to extend their reach in the country’s financial industry.

Mr. Agada made the call at the meeting of the Ghana Microfinance Institutions Network, the umbrella-body of different MFIs associations in Ghana, in Accra.

He said “MFIs in the ecosystem can increase their profitability and competitive advantage by acquiring the right technology.”

In a presentation, on the topic “Joining the Financial Ecosystem: An MFI Imperative”, Mr. Agada said incorporating the right partnerships and technology platform would keep their channels and processing costs lower than the bigger banks would do.

The Director said the financial ecosystem was a community of financial service providers, in conjunction with the components of their environment, which comprised customers, merchants and firms interacting as a system.

He announced that CWG Ghana has developed a platform that would enable MFIs to optimise their proficiency, taking away the burden of acquiring and maintaining technology infrastructure.

Mrs Harriet Yartey, Country Manager of CWG Ghana, said the role of MFIs in the country could not be overemphasised, adding that, the platform would enable the industry to enjoy the benefit of technology infrastructure at an affordable price.

She said that focus was required for business growth, hence, the provision of this platform to facilitate the MFIs focus on their core business while CWG Ghana provides and supports the technology that ensures growth in their business.

The Country Director said CWG Plc, the parent company, in partnership with MTN Nigeria has launched the same platform -- christened MTNXaas for MFIs in Nigeria and has extended it to Ghana and Uganda.