“A good information system is a necessary tool for managing an MFI successfully.”

Microfinance Institutions (MFIs) play an imperative role in the upliftment of economically and socially disadvantaged sections of society. MFIs provide easy financial access to households for gathering resources which enables them to manage their social and financial susceptibilities. Non banking financial intermediaries, credit unions, non governmental organisations and some commercial banks can be understood as different kinds of MFIs. Microfinance industry in India is at the very stage of growth and diversification where technology’s potential has highlighted its importance. For improving effectiveness and efficiency of Microfinance Institutions (MFIs), information technology can act as a strategic tool. By using appropriate Management Information System (MIS) and by adopting different strategies as integration of products and services, the outreach of Microfinance Institutions can be increased economically. In today’s era of technology revolution, IT has made an impression on almost all segments of the industry be it manufacturing, marketing, human resource management and so on. This paper makes an attempt to highlight the extent to which Microfinance Institutions are using Information Technology for delivering business services and for increasing outreach.