Information Technology and Microfinance in Developed Countries

As Information Technology becomes increasingly more present in the so called Information Society, its potential to constitute a strategic resource also increases. Whether, and to what extent, strategic changes linked to the adoption of IT have effectively reached specific economic sectors or industries is therefore of interest. This chapter is meant as a contribution in that area, analyzing the relationships between IT and microfinance, focusing on the microfinance sector in Spain. Our study shows that the microfinance sector’s basic IT infrastructures are above the Spanish average. Two main uses of IT tools are revealed: (1) to provide information, both to prospective clients and to those sustaining microfinance, and (2) as a management and support tool, including on-line direct support to would-be entrepreneurs. Strategic use of IT is less widespread, related primarily to financial transparency issues, more clearly shown by MFIs linked to the social economy. Finally, depth of outreach related to the actual IT use in the sector is also discussed.