Monitoring the Microfinance Processes

The distinguishing elements of microfinance compared with traditional finance, as pointed out in the previous chapters, are the target clients and the typology of the offered products. The satisfaction of the various needs of the clients, located in different geographic locations, has led to the development of many typologies of microfinance institutions characterized by more or less structured products — sometimes including non-financial products — which also follow socio-ethical exigencies. Therefore, the operational processes that are finalized to the achievement of the strategic objectives — both economic and social — of the different institutions have specific levels of standardization and complexity, and, consequently, the arrangement of the performed activities changes. The ‘micro’ features of the offered products and the simplicity of the methodologies used for their structuring and distribution is, indeed, the result of a number of activities that are carefully planned, organized and controlled. The operational processes’ effectiveness and efficiency, despite the complexity of the supplying institution, widely depends on the existence and on the implementation of continuous monitoring and control systems for the activities as well as for the human resources and tangible assets that are used. Such systems must be correctly planned, implemented and shared at all organization levels, in order to guarantee that all activities are carried out correctly.