As shown in Figure B, in addition to recording non-financial data, the software also incorporates other details to help loan officers assess the needs of a microbusiness.

FIGURE B

CrediPalm enables loan officers to record client information such as goods sold, product costs, and household expenses.

The cost of electricity and water, transportation, and rent, as well as a microentrepreneur's family expenses, like education and health care, pop up on a series of screens the loan officer can quickly fill out.

Back at the office, data can be quickly uploaded to a centralized database, eliminating the time-consuming task of reentering it.

Thanks to the Palm handheld's success in Mexico, loan officers at several ACCION affiliated programs are using Palm handhelds, including: BanGente in Venezuela and FINAMERICA in Colombia. ACCION is in the final stage of deploying the technology with affiliates Mibanco in Peru and Banco Solidario in Ecuador. ACCION is introducing loan officers to the new technology at a rate of eight to ten per month. Among them, they are using Palm IIIx, Palm IIIxe, Palm m105, and Palm Vx handhelds.

The handheld payoff
Using handheld computer technology, ACCION is developing a way to substantially cut the time and cost it takes to make a microloan. Previously, loan officers in the field carried a thick stack of paper and a calculator, taking an average of 25 minutes per client to record information. After the data was reentered at the office, the total processing time stretched to one hour.

Today, the Palm handheld program has cut loan-processing time by 75 percent--to 15 minutes. And those extra three-quarters of an hour? Enough time to interview more potential borrowers and follow-up with existing clients.

The application has significantly reduced the chance of error by eliminating the time-consuming task of manually re-entering data recorded in the field on office computers. It gets loan officers away from a pencil and paper approach--saving approximately 25 sheets of paper per loan.

The application also makes it easy to record information such as bank references without the need for paperwork. It also allows loan officers to take into account intangible qualities of the loan applicants, such as references from customers.

Loan officer's can also record their impression of an applicant's character, which is essential when lending to poor people. The handhelds are also a relatively inexpensive solution for loan officers to use. Handhelds are much safer for loan officers to use than laptops because they are less conspicuous, so they are less likely to be stolen, as can be seen in Figure C.

FIGURE C


Handhelds are less conspicuous than laptops, so they are less likely to be stolen. Roll over picture for a larger image.

Ultimately, the software will even enable on-the-spot loan approvals so loan officers can disburse funds more quickly. For now, the best news is that loan officers have more time to meet with clients and reach new ones.

Expect the unexpected
An unexpected benefit of the Palm solution is the reaction loan officers get from clients, who rarely have any exposure to high tech gadgets. Clients "like the idea of you bringing technology to them," says Carlos Membreño, an ACCION consultant who has worked on the project since its inception. "They feel they're being treated as serious businesspeople."