Cash Management DSS based on System Dynamics for MFIs

Ritika Singh; Chandan Bhar

Authors

Ritika Singh
Chandan Bhar

Keywords:

microfinance, decision support system, system dynamics, cash management

Abstract

All the institutions which share a commitment to serving clients with low-incomes that have been excluded from the formal banking sector are part of the microfinance industry. The Consultative Group to Assist the Poorest (the apex association of international donors who support microfinance) regards microfinance as "a powerful tool to fight poverty" that can help poor people to "raise income, build their assets, and cushion themselves against external shocks". Microfinance institutions (MFIs) have reached well over 100 million clients and achieved impressive repayment rates on loans. Because of the increase in the scale of operations, the concept and practice of microfinance have changed dramatically over the last decade and the microfinance is increasingly adopting a financial systems approach, either by operating on commercial lines or by systematically reducing reliance on interest rate subsidies and/or aid agency financial support.

Downloads

How to Cite

Cash Management DSS based on System Dynamics for MFIs. (2014). Global Journal of Management and Business Research, 14(7), 15-21. https://journalofbusiness.org/index.php/GJMBR/article/view/

Download Citation

References

ATUL (2013) ATUL, Modelling and Simulation of Business Problems Using Stella (I THINK) Software. https://www.uow.edu.au/content/groups/public/@web/@commerce/@research/documents/web/uow109439.pdf-iTHINK.pdf

Epifanova Brandt Laura, Kamornikov Natalia, Sergey (2013) Financial Management for Microfinance Organizations. http://depts.washington.edu/mfinance/eng/curriculum/docs/51_financialmanagment.pdf

CGAP (2004) Building inclusive financial systems.

Chandra Prasanna (2008) Financial Management: Theory and Practice, 7th Ed.

Charitonenko Stephanie, deSilva Dulan (2002) Commercialization of Microfinance: Sri Lanka, Asian Development Bank.

Churchill Craig, Coster Dan (2001) Microfinance Risk Management Handbook, CARE, available at:. http://kb.trilincanalytics.com/upload/f5/f546502afcea3e5.pdf

Coleman Brett (2006) Microfinance in Northeast Thailand: Who Benefits and How Much?. 34(9), 1612.

Robert Costanza, Alexey Voinov (2001) Modeling ecological and economic systems with STELLA: Part III. 143(1-2), 1-7. https://doi.org/10.1016/s0304-3800(01)00358-1

R. Coyle (1977) Management System Dynamics.

Cull R, Demirguc-Kunt A, Morduch J (2009) Microfinance Meets the Market. 23(1), 167-192. https://doi.org/10.1257/jep.23.1.167

Guerin Despallier Bert, Mersland Roy (2011) Women and Repayment in Microfinance: A Global Analysis. 39(5), 758-772. https://doi.org/10.1016/j.worlddev.2010.10.008

Cappio-Borlino Dimauro C, Macciota N.P.P, Pulina G (2007) Use of a computer-aided design to develop a stress simulation model for lactating dairy sheep. 106(2-3), 200-209. https://doi.org/10.1016/j.livsci.2006.08.005

Y. Feng, S. Chen, L. Zhang (2013) System dynamics modeling for urban energy consumption and CO2 emissions: A case study of Beijing, China. 252, 44-52. https://doi.org/10.1016/j.ecolmodel.2012.09.008

Gaul Scott (2009) SDI vs. FSS. 18.

S. Gibbons, Meehan David, Jennifer (2000) The Microcredit Summit's Challenge: Working Towards Institutional Financial Self-Sufficiency while Maintaining a Commitment to Serving the Poorest Families. http://www.microcreditsummit.org/papers/challenge.htm

I. Hall, Roger (1999) A Study of Policy Formation in Complex Organizations: Emulating Group Decision- Making with a Simple Artificial Intelligence and a System Model of Corporate Operations. 45.

Chisty Hoque Monzurul, Halloway Muhammad, Rashid (2011) Commercialization and changes in capital structure in microfinance institutions: An innovation or wrong turn?. 37, 422.

M. Hudon, D. Traca (2006) Subsidies and sustainability in microfinance.

David Hulme, Thankom Arun (2009) Microfinance - A Reader, London: Routledge.

Isee systems (2012) isee systems Releases New Interactive Weight Loss Prediction Model. http://web.ebscohost.com/ehost/detail?vid=5&hid=113&sid=b5fd8bda-91a5-4bb3-ae45-b1c75b71ade6%40sessionmgr112&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bwh&AN=bizwire.c41532838

I. systems (2013) iTHINK: Systems Thinking for Business. http://www.iseesystems.co-m/softwares/Business/iTHINKSoftware.aspx

K. Karmakar (2008) Microfinance in India.

Susanna Khavul (2010) Microfinance: Creating Opportunities for the Poor?. 24(3), 58-72. https://doi.org/10.5465/amp.2010.52842951

Rakesh Kumar, Prem Vrat (1989) Using computer models in corporate planning. 22(2), 114-120. https://doi.org/10.1016/0024-6301(89)90130-1

Joann Ledgerwood (1998) Microfinance Handbook: An Institutional and Financial Perspective, The World Bank, Washington DC.

A. Lunde, Sheldon Shirley, Waterfield Tony, Chuck (2006) Using Microfin 4: A Handbook for Operational Planning and Financial Modeling.

Ly Pierre, Mason Geri (2012) Competition Between Microfinance NGOs: Evidence from Kiva. 40(3), 643.

Mallick Debdulal (2012) Microfinance and Moneylender Interest Rate: Evidence from Bangladesh. 40, 1181.

Microbanking Bulletin (2009) Introduction to the Peer Groups and Tables. (18).

Mohan Prem (2013) Banking Industry in India. http://www.bookadda.com/books/banking-industry-india-prem-mohan-9381302146-9789381302149

Ouyang Ying (2008) Modeling the mechanisms for uptake and translocation of dioxane in a soil-plant ecosystem with STELLA. 95, 19.

Pandey M (2010) Financial Management, 10th Ed.

Published Search Citations from the NTIS database Cash Management (Jan 70-Oct 81).

A. Rizzoli, W. Young (1997) Delivering environmental decision support systems: software tools and techniques. 12(s).

N. Roberts, F. Andersen, M. David, Ralph, A. Shaffer, William (1983) Introduction to Computer Simulation: A System Dynamics Modelling Approach.

Schulstad Geir (1997) Design of a computerized decision support system for hatchery production management. 16, 18.

R. Sprague, J. Watson, Hugh (1993) Decision Support Systems: Putting theory into practice, Prentice-Hall International.

R. Srivastava (1996) Financial Management (Principles and Problems), 5th Ed, Pragati Prakashan, Meerut.

Blaine Stephens (2005) Sustainability in Sight: An Analysis of MFIs that Become Sustainable. 23.

Blaine Stephens (2004) Depth of Outreach and Financial Self-Sufficiency. 1.

J. Stover (1975) The use of Probabilistic System Dynamics in the Analysis of National Development Policies: A Study of Economic Growth and Income Distribution in Uruguay. 1037-1044.

J. Thierauf, Robert (1982) Decision Support Systems for Effective Planning and Control: A Case Study Approach.

Tucker Michael (2001) Financial Performance of Selected Microfinance Institutions: Benchmarking Progress to Sustainability. 3(2), 107.

K. Veit (1978) Managerial Application of System Dynamics.

Vensim-Stella (2013) Notes on Vensim and/or Stella Software for System Dynamics Modeling when Using Modeling the Environment. http://public.wsu.edu/~forda/Notes%20on%20Vensim%20or%20Stella.pdf

Woller Gary, Schreiner Mark (2013) Poverty Lending, Financial self-sufficiency, and the six aspects of outreach. 12. http://www.microfinancegateway.org/gm/document-1.9.28981/50.pdf

E. Wolstenholme (1990) System Enquiry-A System Dynamics Approach.

World Bank (2000) World development report 2000/2001: Attacking poverty, World Bank, New York.

Ylinen Tuuli (2010) Profitability and outreach of microfinance: Mission drift theory and evidence from Uganda. http://epub.lib.aalto.fi/en/ethesis/pdf/12248/hse_ethesis_12248.pdf

Zhang Bo, Qin Yu, Huang Mingxiang, Sun Qiang, Li Shun, Wang Liqiang, Yu Chaohui (2011) SD- GIS-based temporal-spatial simulation of water quality in sudden water pollution accidents. 37, 875.