1 Introduction
Microfinance industry as we know it today is changing the lives of people who
depend on it for various financial services not only in India but globally as well.
Whether it is a small size or a marginal loan amount, or a savings account, crop
loan, or for fulfilling social events of life such as birth or death ceremonies, mar-
riages and likewise. Schumpeterian has defined microfinance service provider as an
entrepreneur, in a sense that the form of business he is involved is social but
innovative in nature. The fact is that by venturing into such a business he is not only
running the business, but also solving a social problem, and creating new rela-
tionships using innovative business models which involve ground level actions for
empowering people in different ways [1].
This research paper focuses on the aspect the use of data analytics in the MFIs
(MFIs hereafter) for analyzing and tracking the user needs and necessities. The
paper is structured in forms of sections, such as literature review, which relates
more towards the need hierarchy theory of motivation as defined by Maslow
(1943). The contextual correlation of this theory is significant in serving the
microfinance sector customers as their needs and aspirations keep on changing from
time to time. The section covers in detail about the connections of this theory and its
applicability in the microfinance industry, in particular at the MFIs level. Followed
by it is the method of study, which is analytical and based on the information
obtained from the secondary data sources such as scholarly articles , periodical,
working papers, report publications, as well as recent studies conducted by the
researchers in India and abroad. The rest of the sections such as discussion and
policy implications, followed by conclusion and future research, talks more about
the ICT interventions for efficient delivery of financial services for the microfinance
industry and in particular, the MFIs.
2 Literature Review
Maslow (1943) said that, “A musician must make music, an artist must paint, a poet
must write, if he is to be ultimately happy. What a man can be, he must be. This
need we may call self actualization”. This de finition as proposed by Maslow
indicates that there is a strong relationship with the entrepreneur and the business he
operates. At the same time, this also indicates the fact that the self-actualizing
entrepreneur is also looked upon in this world for producing most innovative ideas,
products and services, for the benefit of mankind [2]. Maslow (1943) further pro-
posed a theory in order to give more contextual meaning to his definition of a
self-actualizing entrepreneur. He called it a theory of the need hierarchy of moti-
vation. In this theory, he has defined individual needs in terms of hierarchy.
According to this world famous theory, he has defined an individual’s need in terms
of lower order and higher order needs. An individual will gain satisfaction by
2 P. Parikh and P. Singh