Bringing Microfinance Technology to the Countryside

 

ARDY staff members check the new digital loan records against paper backup records

The ARDY office is all abuzz this month about an impending switch to a completely new software system to manage all of the organization’s microfinance data. A representative from a Sino-German microfinance consultant, based in Beijing, as well as from a Nepal-based software distributor, are both spending the month in Jincheng to oversee the switch and train the staff on the new system’s operation. The new software, called Microbanker, is a powerful example of international development collaboration. It was originally developed by the UN Food and Agriculture Organization’s Asia division, in Bangkok, in collaboration with the German technology firm GTZ. Microbanker of Nepal, the nearest distributor, has successfully installed the software in 37 different countries.

 

The software has the potential to dramatically increase the efficiency of ARDY’s operations as well as make future expansion and modification of the model much faster and cheaper. While each of ARDY’s branches currently manages the data for its own set of loans entirely locally, making it impossible to access that data from the central branch or from other branches, the new system will connect each branch to an internal network to make all of the organization’s loan data accessible from anywhere.

So good so far, right? Of course, installing an entirely new software system on computers spread out throughout seven different remote towns in mountainous rural China is easier said than done. Observing this process of bringing state-of-the-art technology into rural China, and many tiny snags encountered along the way, has been an interesting experience.

The installation process is an interesting case study in international cooperation. The two Nepalese consultants learned fluent English from a young age, and need the Chinese consultant from Beijing, who speaks good English, to communicate with the ARDY staff. It has been gratifying to feel useful as a miscellaneous interpreter when the official translator is busy.

 

Mcgyvering a power strip

A couple of weeks ago I travelled with the outside consultants to the Yong Le branch and watched as they connected the branch’s computers into the new software network. Before long, the tiny concrete storefront was bristling with extra wires and Ethernet cables. Luckily, there was a clever local solution for organizing the wires; one of the loan officers disappeared and returned with a plain length of steel pipe, into which all of the wires were threaded. When the wire on the surge protector they were using proved too short to fit through the wire, the loan officer vanished again and returned with a longer wire, then proceeded to take the surge protector apart, strip the insulation of both ends of the new wire and put the surge protector back together with the new, longer wire.

 

Though all of the hardware was finally assembled around noon, when the consultants opened the program they were unable to raise a signal from the main server that they had installed at ARDY headquarters in Jincheng. “We usually don’t get internet around noon,” the Yongle loan officer explained. “It comes on again after about an hour, around 1pm. The same thing happens from 6-7pm.” None of them had any reason why this was the case.

 

Forrest Zheng, a consultant from Beijing, and Ajay Shrestha, a representative from a Nepal-based microfinance software distributor, hook up the new server at the ARDY branch in Fuxing

On the first day of installing the new software at the branch office in the town of Fuxing, the staff stayed up late, scrambling to finish the initial data migration before the next morning. “They’re turning the power off tomorrow morning,” a Fuxing loan officer told me, “we have to get all of the new data in before then.”

 

These types of obstacles are rarely predictable, and are the inevitable result of dealing with the idiosyncrasies of a rural setting like Yilong. Watching the installation process has been, for me, a powerful reminder that rural development is inherently an unpredictable and dynamic field.

 

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One Response to “Bringing Microfinance Technology to the Countryside”

  1. The End of Microfinance’s Honeymoon « West of Middle Says:

    […] Nepal to help them install a new data management system–something I’ve blogged about previously here. The two men who came in from Kathmandu to oversee the installation process had been to China […]

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