ABSTRACT
Since the last five decades microfinance has been emerged as a panacea of channelizing small finance in the backdrop of credit market failure of commercial banks. MFIs are highly dependable on donors' fund coupled with lower margin on investment but recognizes as an effective tool for financial inclusion. MFIs main concern is about maintaining financial sustainability without donors' support, and upholding an acceptable outreach performance. In this context, Information and Communication Technology (ICT) play an imperative role in, scaling down operating expenses, deliver better customer experience, extending outreach operation, etc. This chapter measures the magnitude of sustainability of selected MFIs across the world regions and delineating the role of ICT in explaining sustainability of MFIs. Technique for Order Preference by Similarity to the Ideal Solution technique is employed to measure sustainability score of MFIs. Factors contributing to sustainability score are identified by using panel regression model. Results reveal a positive and significant influence of gross loan portfolio, ICT and return on assets and a negative and significant impact of portfolio at risk in explaining variation of sustainability score of selected MFIs.
