Beruflich Dokumente
Kultur Dokumente
Jean POUIT
Luxembourg 04/11/2011
European Microfinance Week
What is a microfinance software?
A loan portfolio manager Key loan features Optional 2
with group lending – Multilingual
capabilities – Collateral
– Management reporting – Multi currency
Key microfinance
features: – IAS compliance – Banking services:
Savings, Shares
– Ability to track loan – Blacklists (deliquent or new (CUs), Time
cycles borrowers) deposits, Micro
– Ability to monitor insurance
– Different interests, fees &
donor funding penalties calculation – Multi channel
– Borrowers of a delivery (Web, ATM,
Key software features Mobile)
group can become
individual – Online context sensitive – IP technology
borrowers help
– Security(authenticati
– Integration with – User and technical manual on, audit trail)
accounting (if online documentation is
not sufficient) – Scalability
– Mandatory savings
linked to the loan – User profiles management – Customers
(right info to right people) statements in
– Ability to manage dialects
flat interests – Report generator (i.e Crystal
reports) – ERP modules
– Regulatory (HR/Payroll, fixed
reporting (MIX, – Consolidation of data assets,
CGAP, National) Inventory/furnitures)
– Import/export (at least
– Loan officer Excel, TXT or XML) – Credit scoring
collection module
(i.e. PDA) – Backup (if not integrated in – CRM
the database)
– Islamic finance
Table of contents
3
Head
Office
Usually, regional
Regional Regional Regional offices plays a role in
the consolidation
Offices Offices Offices process, only if the
Service
Bureau
branches is not
computerized
IT needs
analysis
Scenario 1
Upgrade Gap Upgrade
Strategy specifi
Program User
Legacy analysis SWOT ming testing
Hardware System cations
New Analysis
Softwares Requi Disadvantages
Network rements Advantages
Scenario 2 Call
Processes Shortlist RFP Testing &
Strengths Weaknesses
-Strong accounting features -Not multilingual
Internal
Opportunities Threats
-New regulatory
External
-Funding available to
support the use of this MIS requirements not available
-Sharing costs with another -Sustainability of the
MFI provider not ensured
Evaluation criteria
I. Functionality
11
V. Technical Capabilities
(a) Accounting: Ability of the system to communicate with external systems
· Range and quality of standard financial reports Backup, recovery and security capabilities (including reliability of back-ups
· Integration across the system on information generated (accounting module undertaken by previous personnel)
· reconciliation with the production application) Fault tolerance and robustness
· Asset and liability management facilities Is there performance degradation with system growth and multiple users.
· Treasury functions
· Accrued interest
VI. Technology and architecture
(b) Portfolio tracking
Appropriate technology (future, price of hardware)
(c) Savings/deposit tracking
Open standards compliance
(d) Loan approval:
Source code maintenance
(e) Capacity of MIS to grow and expand as the institution adds new clients
Clear versioning of software
and products
Clear upgrade strategy
· Supports different loan interest calculations, deposit interest calculations
Availability of development sources codes
· Multiple branches
VIII. Pricing/Cost
IV. Services provided by the software provider
Licensing and maintenance costs relative to the market and similar systems
Implementation
Base price and pricing structure
Training
Maintenance and technical support fees and charges
Technical support
Price appropriate to level of complexity and functionality
Overall value proposition (functionality as a function of cost)
Comparison
12
Functionalities
4
2
Technology Ease of use
1
0
Sigma
Banker Realms
TMS Microfit
Abacus
Services Reporting
13
Consolidation of data
Integration between loan portfolio manager
and accounting
Customization of reports
Security
Interests calculation
Consolidation
15
Copy of pre-filled formats
Sending floppies/backup cartridges/CD/USB keys &
mails (flat file interface)
Automated interface, Synchronization, replication of
data (full or partial)
Centralized database requires efficient connectivity
for real time update
Integration
16
Accounting module: 15 accounts at branch level
versus ERP needs (payroll, assets, inventory,
central finance facility) at HO level
Totals by product (capital, interests, fees, penalties)
to generate automatic entries
Customization of reports
17
Set of predefined reports
Reports generator like Crystal reports/BO
2 skills required:
– Knowledge of data model
– Ability to write SQL extracts
Security
18
Availability: backup policy, hot restart
Integrity of data: no direct access to data, good
database technology, no inconsistencies (fault
tolerance, UPS)
Confidentiality: authentication, right information
delivered to the right people through user
management
Accountability: audit trail, personal password
changed regularly
Interests calculation
19
Installments, capital (or principal) and interests are
fixed or increasing, decreasing
Penalties can have a grace period but also a grace
amount and be a flat amount or a %
Many MFIs prefer to avoid day-to-day calculation of
interests, less profitable than flat interests
20
Contact information
Jean POUIT, Executive Director & founder MyTransfer
(Luxembourg)
email jeanpouit@yahoo.fr
Mobile: +31 623704102 Skype:simbajp