A major thrust of FAO’s changing approach to institutional development has been the development of a computerised banking software for small and medium-sized financial intermediaries. The FAO MicroBanking System, as it is called, is a pioneering banking software package that
combines real-time transaction processing, general accounting and
information retrieval functions with low-cost personal computer hardware. The system covers Loans, Savings Accounts, Time Deposits,
Shares Accounts (for credit unions), Customer Information and General
Ledger in one integrated package. The system is a low cost solution to
the challenge of reducing the expenses and increasing the management
efficiency of financial operations, particularly in decentralised grassroots level financial intermediaries.
The software was first introduced in 1988 and enhanced through a
series of FAO-executed projects to its current level of considerable
sophistication. At the beginning of 1998, the number of installations exceeded 1,000, in some 26 countries. The majority of installations are
in developing countries in Asia, but the system has been launched in
other regions as well, including Africa, Latin and Central America, the
Caribbean, Eastern and Central Europe, and Russia.
Like any other computerised banking software, the FAO MicroBanking
System needs appropriately trained and qualified local experts who can
assist users with installation, user training, problem solving and further
programming to meet new emerging requirements. Therefore, a considerable emphasis in FAO’s work is put on training and development of
manpower to meet such requirements. FAO has also helped to establish
small entities capable of providing support services to the users of the
FAO MicroBanking System.