Strategic use of information technology in the Spanish microfinance sector

This paper analyzes the relationships between IT and microfinance in a developed country. Its main purpose is the study of the intensity of IT use in the sector, focusing on IT-related management of its organizations. Two different goals related to actual IT use have been identifed. Information Technologies have indeed been used as a tool to provide information, both to prospective clients and with a more general scope. Furthermore, improvements on management due to IT use have also been encountered, such as on-line direct support to would-be entrepreneurs through specifc software. The paper also considers whether IT use adds effective value to the performance of some or all Spanish Microfinance Institutions (MFIs). It is found that such strategic use of IT is less widespread, related primarily to fnancial transparency issues, more clearly shown by MFIs linked to the social economy.