New York – Founder and CEO of SKS Microfinance, Vikram Akula, was awarded the Global Indus Technovators Awards 2006 for his organization’s work in cutting edge technology in the field of microfinance. Vikram was recognized along with nine other young innovators of Indian origin working in the fields of biotechnology, medicine, healthcare, optics, optoelectronics and information technology. SKS is recognized as one of the first microfinance institutions in the world to have a fully-automated Management Information System (MIS) that streamlines operations and helps reduce transaction costs.
The ease-of-use of this system allows SKS field-staff, most with no more than a 10th grade education, to independently handle up to 600 borrowers each and up to 30 lakhs ($65,000) of loans. SKS was also one of the first MFIs to run a smart-card pilot project in 2001-2001. The pilot aimed to reduce the increased cost and time involved in conducting thousands of manual transactions. Though the smart-card never rolled out, SKS is now working with VISA International on using a cell-phone based Point-Of-Sale (POS) device that will allow members to use magnetic-stripe cards as cash substitutes. Vikram noted, “this award is a recognition of SKS’ achievement as a technological innovator in the industry. We hope that others in the microfinance field follow suit and adopt automation as a standard business practice. This can only help the industry grow to new heights, and help us provide financial services to greater numbers of poor around the world.”
Contributed by Anuradha Bhattacharjee, 16 Mar 2008