Designing a Housing Microfinance Loan Product

1. Designing a Housing Microfinance Loan Product MIS Enhancements & Reports

2. Outline • Importance of MIS • HMF Reports • Workshop Exercise: • What needs to be enhanced on your existing MIS • Systems Requirements to enhance your MIS

3. Understanding MIS “As a general rule, he or she who has the most information will have the greatest successes in life” D’Isreali

4. Understanding MIS

5. Understanding MIS • Management Information System (MIS) is a system or process that captures raw data from various activities in an organization, converts the data into usable information and then disseminates this information to users in a required format. • MIS provides the information necessary to manage an organization effectively on its day-to-day operations, supervision and control of activities. • Information generated by the MIS is considered essential inputs in making prudent and reasonable business decisions. • Hence, MIS is very critical as without this, organization would become blind about its operations and activities that leads to disastrous consequences. • MIS is NOT (just) a Computer Program.

6. Effective MIS For MIS to be effective, the information must be: • Accurate – data must be gathered as close to the primary source of activity as possible. • Objective – information must be put together in a way that does not introduce any personal/departmental bias or judgmental elements. Just state the facts and leave the judgment to the user of the information. • Timely – Certain types of information must be generated instantaneously. Other, more analytical information can be generated periodically, say daily, weekly, monthly, quarterly or annually. Ensuring timeliness of information, over and over again, without fail is the hallmark of a great MIS.

7. Effective MIS An effective MIS process is one that CAPTURES data, CONVERTS data to information and COMMUNICATES the information in the form of reports to specified user categories in an environment that ensures ACCURACY, OBJECTIVITY and TIMELINESS. To use mobile phone-era SMS language, effective MIS is a just a simple mantra: ‘CCC wth AOT’!

8. Effective MIS for HMF Product • Your core banking system should have a separate product code, data entry or input screen for HMF. • The system should accommodate filtering of all HMF clients, records that will be used for calculations. Separate data sets or set of parameters distinctive to the HMF Product i.e. interest rates, terms, amortizations, etc… • System should be able to generate separate reports e.g. Loans Listing, PAR Report, Delinquency Report, etc… • It is of great advantage the system can generate separate financial statements for HMF Product

9. Core Banking System

10. Questions: • Does your core banking system includes capturing, processing and reporting microfinance operations. • Can it accommodate more than 1 microfinance product e.g. regular microenterprise product (MEP), micro-agri product (MAP). If not, how does the bank manage to segregate • Once data are inputted to the loan and/or deposit system, do you need to re-input (re-encode) these data in order generate • Accounting entries, reports • Information needed to submit reports to management; externally e.g. BSP, PDIC, creditors, MABS, etc… • Does you core banking system capable of consolidating reports (for multi-branch bank)

11. HMF REPORTS • For MABS to assist the bank in their rollout activities, the bank’s point person for HMF Product or the bank’s head of microfinance shall continue to report the HMF performance indicators or numbers to MABS. • MABS expects the bank to submit the HMF reports every 10th of the month.

12. TYPE OF REPORTS To be submitted to MABS • Every 10th of the following month (for January; should be submitted by February 10 • Performance Report by AO • PAR Report • As necessary or required • Delinquency Report • Loans Listing

13. PERFORMANCE REPORT BY AO 10/04/2000 Rural Bank of xyz Page : 1 01:03:46am Head Office PERFORMANCE REPORT BY ACCOUNT OFFICER 02/01/2006 - 02/28/2006 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- AMOUNT OF #NEW AMT. NEW #REPEAT AMOUNT REPEAT #OF LOANS #OF LOANS ACCOUNT OFFICER NO. OF LOAN ACCOUNT #LOANS LOANS LOANS LOANS LOAN LOANS W/ OVERDUE W/ OVERDUE PORTFOLIO PORTFOLIO TOTAL REVEN NAME BORROWERS BALANCE DISBURSED DISBURSED DISBURSED DISBURSED DISBURSED DISBURSED AMOUNT AMOUNT(%) AT RISK AT RISK% -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1. Edgar Allan Poe 99 781,824.25 41 458,400.00 1 7,000.00 40 451,400.00 4 4.04% 27,682.66 3.54% 38,398.28 2. Irah Algorithm 106 647,661.76 34 317,600.00 3 22,200.00 31 295,400.00 2 1.89% 5,999.34 0.93% 30,114.83 3. Siriaco Monton 134 852,662.48 47 480,400.00 2 48,000.00 45 432,400.00 0 0.00% 0.00 0.00% 43,830.72 4. Sylvester Stallone 116 774,537.23 46 420,600.00 2 16,000.00 44 404,600.00 11 9.48% 77,163.15 9.96% 41,366.95 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total 455 3,056,685.72 168 1,677,000.00 8 93,200.00 160 1,583,800.00 17 3.74% 110,845.15 3.63% 53,710.78 -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14. PORTFOLIO AT RISK REPORT

15. PERFORMANCE REPORT BY AO EXCEL TEMPLATEDEMO

16. The MABS program is implemented by the of the Rural Bankers Association of the Philippines. It receives funding support from the U.S. Agency for International Development with oversight provided by the Office of the President and the Mindanao Economic Development Council. Rural Bankers Association of the Philippines Mindanao Economic Development Council Office of the President of the Philippines U.S. Agency for International Development The general contractor is Chemonics International, Inc. These materials were made possible through the support provided by the U.S. Agency for International Development/Philippines under the terms of contract no. 492-C-00-98-0008-00. The opinions expressed herein are those of the author(s) and do not necessarily reflect the views of the U.S. Agency for International Development.