PRODUCT NAME

Octopus Microfinance Suite v. 2.6

VENDOR NAME

Octopus Microfinance

2009 Review*

September 2009

Previous Reviews

Not applicable

SUMMARY
Overall impression

Octopus is an innovative new solution based on an open source

development model. Continuous improvements and developments
are made through a collaborative web platform which brings
together the editor, resellers, and MFIs to contribute to product
development.
The solution was launched in 2007 and meets basic requirements
for a small-medium MFI. The solution is evolving at a steady pace
as a result of its development methodology.

Pros

User-friendly solution with highly ergonomic window displays

(intuitive use, search anywhere function, dashboard of critical
information and alerts)
Free of charge license acquisition - the user owns the source
code and can choose its own counterpart for maintenance
Product
is
continuously
enriched
through
community
contributions

Cons

Basic functionalities covered at this time

The advantages of a continuously evolving product may raise
issues for MFIs to adapt their standards/processes on an ongoing basis
The advantages of a continuously evolving product may also be
reduced for MFIs which have limited access to the Internet

IT expertise
required

Installation and maintenance may require users with experience in

SQL servers.

*Please consider the profile of a typical user when reading this review. Evaluations are conducted based on how well the
product performs for the type of user indicated in the client profile section.

CLIENTS
Size (# of clients)

Small (less than 5,000)

Medium (5,000-25,000)
Medium-Large (25,000-50,000) with SQL version
Large (more than 50,000)
Other (specify)

Type of institution

Commercial Bank
Microfinance Bank
Community Bank
Finance Companies
Savings and Credit Associations
Cooperatives and Credit Unions
Non-profit Organizations

User feedback
(Sample of users)
See User Surveys for
detailed ratings.

Installation by
region
See RFI for installations
by country.

Overall Rating
(Excellent, Good, Average, or Poor)

Name of User

Good
Average
Average
Good
Average

African Gate Financial Support

(Ghana)
Anonymous
Anonymous
Anonymous
AIRDIE (France)
Buksh Foundation (Pakistan)

Total Number of Clients (MFI)

12

Europe and Central Asia

10

Sub Saharan Africa

East Asia and the Pacific

South Asia

Middle East and North Africa

Latin America and the Caribbean

Good

RATINGS from * = poor to **** = best

Functionality
**

The solution meets the basic requirements of a small-medium MFI.

The Credit and the Client Information modules have the most
extensive coverage. The multi-currency Accounting module is
complete but the configuration schemes lack flexibility. Only
current accounts and saving accounts offered by the Savings
module which is expected to be completed by the end of 2009.
Transfers expected to be added in 2010. Teller Management is
basic and no other delivery channels are available for the time
being.
The Group methodology is particularly well implemented. Screens
display one glance for detailed information related to all group
members. Batch entry available for loan repayments and
compulsory savings, with exception posting capability.
2

The application can centralize and present data at different levels:

branch, region, end entity. However, it does not yet offer multientities.
Ease of use
****

State-of-the-art screen design with easy and intuitive navigation

through the windows. Client-centric approach; all information and
operations related to a client can be accessed through tabs in the
same window. Clear display of information with drill-down
capacities.
Some practical features are permanently displayed, including
search anywhere and automatic alerts on events (treasury level,
todays repayments, late loans, etc.).
The application is multi-lingual, available and maintained in
English, French, Russian, and Arabic.
There is no contextual Help in the application. Users connect to the
website to access updated manual, wiki, forum, etc.

Management
reporting
**

The solution comes with an extensive number of reports. However,

most of them are preset so the user cannot define their own
criteria for filtering and presentation of data.
The information can be presented at different levels of
consolidation, and some of the reports include trend analysis based
on specific time periods.
The application integrates with Crystal Reports, but the design of
new reports requires IT expertise (SQL and Octopus data
structure).

Implementation/
Training/ Support
***

Implementation and training support are provided either by the

editor, based in France, or one of its partners located in Senegal,
Kyrgyzstan, and Sri Lanka. New partners are expected in North
Africa/Middle East, Sub-Saharan Africa, and South Asia. Some
users indicated that they have installed the application themselves.
The application and new releases can be downloaded from the
Octopus website. The website also provides methodology and data
migration tools for the end-users.
Surveyed users have rated the implementation, training, and
support services from Average to Excellent.
Octopus Microfinance Suite is also available in ASP mode
(Application Service Provider); MFI users connect remotely to the
editor server and manage their own data (Octopus online).
3

Technical
capabilities
***

The application can run on a simple PC, either as a standalone or

embedded in a network environment with a central server (local
(LAN) or Internet (VPN)).
Databases supported include Microsoft SQL Express (free of charge
but limited to 11 concurrent users) and SQL Server.
Consolidation in the central database is made through integration
of the entire database, not in an incremental manner. Incremental
consolidation is expected to be available by the end of 2009.
The application includes audit trail reports, however, these are
limited to input from transactions and does not include changes
made on tables and the configuration.
User roles and privileges are rigid and cannot be set based on the
user profile.

COST SUMMARY
Range of user
budgets
(See User Surveys for
detailed budget)

Total implementation budget of the surveyed users varies from $0

to $145,000.

Standard costs

Unit

Comments

License

N/A

License is free of charge as Octopus is open-source.

Implementation fees

Per
implementation,
based on portfolio
size

Octopus proposes a turn-key implementation

package which includes training, installation and
configuration, light adaptations, and migration of
data up to 2 branches. Fees are based on portfolio
size:
- Greenfield: EUR 5,000
- Portfolio < EUR 1 million: EUR 10,000
- Portfolio EUR 1-10 million: EUR 15,000
- Portfolio > EUR 10 million: EUR 25,000

Training

Per person

System administrator: $ 3,000 per person

End-user: included in the implementation package

Maintenance

% of gross
portfolio

Three levels of maintenance support offered:

- Shared Support (0.02% of gross portfolio):
resolution of bugs and calls answered within one
day
- Dedicated Support (0.05% of gross portfolio):
resolution of bugs and calls answered within 2
hours, one feature request per year
- Continuous Improvement Support (0.25% of gross
portfolio): resolution of bugs and calls answered
within 1 hour, on-site support and coaching
whenever needed, unlimited feature requests

Pricing Cases
(details in RFI)

Case 1: MFI with Loan, Deposit,

Domestic Transfer Products
Case 2: MFI with Group and
Individual Loan Products
Case 3: MFI with Individual Loan
and Deposit Products

# of
Clients

# of
Users

# of
Branches

% Urban/
% Rural

Price

100,000

220

50

50/50

N.A.

40,000

60

20

20/80

$105,000

15,000

45

10

80/20

$60,000

Comments: For case 1, provider prefers to quote on a case-by-case basis.

Features covered by Octopus

DELIVERY
CHANNELS

FRONT OFFICE
CLIENTS

PRODUCTS AND SERVICES

Teller
mgmt

ATM

POS

Loans
Client information
management

Potential client
information
management

Transfers

Savings account

Interbranch

Others

Individual loans

Solidarity groups with

individual loans
Solidarity groups with
group loans

Collateral mgmt

Mobile
Banking

PDA

Savings

Customer
Relationship
Mgmt (CRM)

Current account

Interbank

Overdraft account
International

Term deposit

Guarantor mgmt

Planned savings

Credit Scoring

Group savings

Batch

Payment card

Check mgmt
Foreign exchange

Insurance

LEGEND
Function not covered

Function covered at
less than 50%
Function covered
between 50 and 75%
Function covered at
more than 75%

Function covered by
additional module
Function covered by
partner software

BACK OFFICE
ADMINISTRATION
HR
administration
Payroll
management

Share mgmt

NETWORK

FINANCE & ACCOUNTING

Finance

Accounting

REPORTING
Operational reporting

Budget mgmt

Chart of accounts
mgmt

Regulatory authorities
reporting

Treasury mgmt

Sub-ledger
updates

Financial reporting

Accounting GL

Management reporting

Asset mgmt

PC stand
alone

LAN

Centralized

On line
(WAN)

With off
line option

Decentralized with
consolidation of
Database
transfer

Incremental
data transfer