Technology readiness mis for business expansion
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Technology Readiness, MIS for Business Expansion. Reji Varghese AVP – IT Consulting , BASIX. Success Stories in MFI’s/NGOs. IT Innovations at SNFL Pre-Installation No system for portfolio tracking Low OTRR NPA levels were high Post Installation of MIS

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Technology Readiness, MIS for Business Expansion

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Technology Readiness, MIS for Business Expansion

Reji Varghese

AVP – IT Consulting ,

BASIX


Success Stories in MFI’s/NGOs

  • IT Innovations at SNFL

    • Pre-Installation

      • No system for portfolio tracking

      • Low OTRR

      • NPA levels were high

    • Post Installation of MIS

      • Designed and Implemented MIS systems

      • Monitoring and feedback systems are stabilized

      • Initially used ‘Famis Plus’ and presently updated to Oracle based ERP system ‘DELPHIX’

      • Operating in 6 states with more than 1o,000 villages

      • OTRR -99% , NPA reduced, 5 lakhs customers at present


Success Stories in MFI’s/NGOs

  • SARC, Sambalpur

    • Funds received to this institution after MIS systems were installed

    • O/s increased from 2 Lakhs to 60 lakhs with in 1 ½ year

    • Presently entire portfolios are monitored and even IDPD collected in case of delay in repayments

  • Equitas, Chennai

    • E-Documents

    • SMS based tracking

    • Central Database and data processing at central place

    • Now moved into Core Banking System


Success Stories in MFI’s/NGOs

  • BASIX

    • MIS systems were developed from the day one

    • Well structured systems are in place

    • Good portfolio tracking and monitoring systems

    • 1 million credit customers and 2 million Insurance transactions are processed in a month

    • ½ million non-credit transactions are captured

    • Entire Audit process completes with in 10-15 days

    • 17 states, 130 units monthly MIS reports are consolidated with in less time

    • Now moving into central processing and mobile based loan repayment systems

    • Setup its own IT division called ‘ITSL’ and serves technology initiatives of group companies and NGO/MFI sector


Thus, Technology initiatives are best investment decision rather being considered as cost center….


Why you need an MIS?

  • Scaling up strategies

    • Right information at right time is the key to success

    • Plays Vital role in strategic decisions

    • Expand client reach

  • Reduce cost of transactions

  • Improvements in quality of work

    • To analyse critical operational parameters

    • To Strengthen financial performance

    • Pinpoint those areas which require immediate attention

    • Increase the efficiency of Human Resources

    • Motivate field staff and to create healthy competition


Key elements of a better MIS

  • 100% Automation of all business/functional areas

  • Integrity between operational modules to financial accounting

  • Data Security and interoperable

  • Flexible Loan, Insurance and Savings product definitions and its revisions

  • Automated Loan Documentations

  • Tools for controlling Risk Management and controls for effective monitoring

  • Various MIS reports for analysis from field level to top management


  • System should have Critical Information requirements of various stake holders such as

    • Field staff operations info.

    • Management Reporting

    • Statutory requirements

    • Funding agencies reporting

    • Customer MIS

    • Service Delivery

    • Internal Controls


Field staff information..

  • Loans appraised/sanctioned Vs disbursement particulars

  • Day wise collection statements

  • Loans overdue reports

  • Portfolio Performance Reports


Management Reporting

  • Operating Summaries

    • Weekly (Inflows & Outflows at branch level)

    • Monthly (Demand, Collection and Balances)

  • Employee Performance Reports

  • Key Portfolio Indicators (Financial Health)

    • Loan Outstanding & No. of A/C’s

    • Repayment %

    • Principal At Risk (PAR)

    • Non Performance Assets (NPA)

    • Aging Analysis of Overdue

    • Financial Ratios


Financial Accounting

  • Savings/Cash Security Particulars

  • Financial Accounting Statements

    • Borrower/Member Sub-ledgers and balances

    • Secured/Unsecured loan portfolio details

    • Income (Interest earned on loans) particulars

    • Trial Balance , P & L, Balance Sheet etc.


Other major area requiring automation, field transactions using Mobile/HHD/POS

  • To develop a foolproof system for handling field transactions

  • To reduce the workload of data entry

  • To acknowledge the receipt of the payment at the field

  • To reduce the transaction cost

  • Automate until the last mile of the financial transaction

  • To facilitate better interaction with the customer

  • Reduce human errors


Various MIS Solutions..

  • Client- Server architecture at the initial level which costs around 2 to 5 lakhs

  • Web based solutions ( .Net . Java etc.)

  • Central Processing systems , CBS or ERP solutions which cost starts from 20 Lakhs based on number of branches and modules

  • RDBMS based on Oracle, SQL Server are better options

  • Open source solutions are available

  • It is better to use mobile/HHD devices to automate field transactions


Key Learning's

  • Recruitment of cross domain (IT and Functional) specialists for managing ICT projects is always useful

  • IT together with Institutional Support is mandatory

  • Selection of Technology and IT partner

  • Adopt IT as a strategy and align with business needs

  • Be practical in your thinking and have patience during implementation and stabilization of system

  • An MIS will not meet all the flexibility hoped for

  • Good Project management and documentation practice

  • Involvement of all user groups in system development/Implementation

  • Continuous training to the end user


Suggestions to the sector, out of experience..

  • Assess your IT needs

  • Initiate the process

  • Acquire good IT Solutions

  • Adopt IT in your business

  • Make your life simple ..


Thank You..

[email protected],

www.basixindia.com


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