Outsourcing Options for Microfinance Institutions (Discussion Transcript)

This is the Summary of the Speakers Corner #26: Outsourcing Options for Microfinance Institutions (September 16-18, 2008).

Outsourced core banking systems could increase the efficiency and capacity of microfinance institutions (MFIs). MFIs, however, have been slow in adopting the use of outsourced core banking systems. They are concerned about finding a system that works for their unique situation, fear losing control over sensitive client data, and worry about security risks. Moreover, they are not convinced outsourcing will lead to reduced costs.

In the US, however, experiences suggest that outsourcing could be a successful operational strategy for financial institutions. This discussion addressed various options that MFIs can exercise when considering outsourcing some of their activities.