ACCOUNT OFFICER’SBASIC TRAINING

MIS ReportsMIS Reports

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TopicsTopics

• Objectives

• Introduction

• Importance of management information system (MIS) in microfinance (MF)

• MF Loan Monitoring Reports

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ObjectivesObjectives

• At the end of this module, the participants shall be aware of the benefits of having a good MIS for their institution’s microfinance activities.

• The participants will be familiar with the various reports used for monitoring MF activities.

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Why is MIS important to microfinance?Why is MIS important to microfinance?

• The MIS of an institution includes all the systems used for generating the information that guide management in its decisions and actions.

• MIS can be seen as a map of the activities that are carried out by the microfinance institutions (MFI).

• MIS monitors the operations and provides reports that reflect information which management considers the most significant to track.

• All levels of the institutions, from top management and down, as well as funding organizations and regulators, rely on reports produced by the MIS to give an accurate picture of what is happening in the MFI.

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Why is MIS important to microfinance? (cont’d)

• Methods, staffing, and even financing are frequently not proving to be critical constraints to growth. Rather, the ability to track status of its portfolio in a timely and accurate manner is often the most pressing need.

• In many cases, the difference between success and failure of the lending and savings operations of MFIs can mostly be attributed to the reliability of the systems tracking this information.

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Good information systems can:• Improve the work of field staff, enabling them to better

monitor their portfolios and provide better service to an increasing number of clients.

• Enable supervisors to better monitor their areas of responsibility, pinpointing priority areas that most require attention.

• Help senior management to better plan the work of the entire organization and make well informed strategic decisions by regularly monitoring the health of the institution through a set of well-chosen reports and indicators.

Why is MIS important to microfinance? (cont’d)

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MF Savings and Loan Monitoring Reports

• Listing of Loans • Collection Due Report • Delinquency Report • Portfolio at Risk Report • Interest Collected by Microfinance Unit• Performance Report by AO • Microfinance Monthly Report• Client Status Report • PAR by Aging and Business Activity• PAR by Loans Disbursed and Business Activity• Loan Profile by Gender

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MF Savings and Loan Monitoring Reports

• Listing of Loans • Collection Due Report • Delinquency Report • Portfolio at Risk Report

Indicates loan portfolio data and quality

Indicates revenue,

growth and performance.

Analyzes quality based

on client, business and

characteristics..

• Interest Collected by the MFU• Performance Report by AO • Microfinance Monthly Report• Client Status Report

• PAR by Aging and Business Activity• PAR by Loans Disbursed and

Business Activity• Loans Profile by Gender

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Listing of Loans ReportListing of Loans Report• Lists all active loans

• Shows basic information of each active loan (name of borrower, loan acct. #, date of disbursement, maturity date, amount disbursed, loan balance, amortization amount)

• Shows loan amount overdue, portfolio at risk, and hold out balance

• Identifies what loan cycle the borrower is in

• Frequency: Usually monthly, but can be generated anytime

• Grouped according to account officers assigned and sorted by names of borrowers

• Users: Branch Manager, MFU Supervisor, AO

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Collection Due ReportCollection Due Report

• Lists loan accounts falling due on a specified period

• Shows the name of borrowers with amortization due for the period, the amount due (total amount and amount of specific items, including payments for principal, interest, other charges and savings), and the amount overdue.

• Frequency: Usually daily or weekly

• Grouped according to account officers assigned and sorted by names of borrowers

• Enables account officers assigned to identify which accounts are to be collected within the specified period

• Users: MFU Supervisor, AOs, Loans Bookkeeper

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Delinquency ReportDelinquency Report

• Lists delinquent accounts as of date of printing

• Exception report

• Shows portfolio at risk, total amount due, # of loan installments missed, # of days overdue, holdout balance, and exposed amount

• Grouped according to account officers assigned and sorted by the names of borrowers

• Frequency: Must be daily

• Users: Branch Manager, Supervisor, AO, RBAP/MABS

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Portfolio At Risk (PAR) ReportPortfolio At Risk (PAR) Report

• Primary report that indicates the quality of the loan portfolio of the MFU

• An aging report that shows the overdue amount and portfolio at risk

• Also shows the total number of outstanding borrowers, the corresponding outstanding loan balance and their percentages

• Estimates the PAR ratio

• Frequency: Must be generated at least once a week, but can be printed anytime

• Users: Top Management, Branch Manager, MFU Supervisor, RBAP/MABS

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Interest and Fees Collected from the MFUInterest and Fees Collected from the MFU

• Summary of interest and other charges collected within the specified date range, grouped by account officer

– Shows the income generated by each AO and the microfinance unit of the branch as a whole

• Frequency: Usually at the end of the month, but can be generated anytime

• Users: Top Management, Branch Manager, MFU Supervisor

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Performance Report By AOPerformance Report By AO

• Shows the performance of each AO and the microfinance unit of the branch as a whole

• Comes handy if the bank has an existing incentive scheme

• Summarized by (according to) account officer

• AO performance indicators include: - # of loans, new and repeat - amount disbursed and revenue generated- overdue amount and portfolio at risk

• Frequency : Usually at the end of the month, but can be generated anytime

• Users: Top Management, Branch Manager, MFU Supervisor, AOs

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Microfinance Monthly ReportMicrofinance Monthly Report

• Compares the results of current month’s operations vs. those of previous months

• Compares the performance of the microfinance product vs. other products of the branch

• Shows comparative figures (loans, deposits, and financial income) between two succeeding periods

• Shows all loan accounts with outstanding balance

• Frequency : Usually monthly

• Users: Top Management, Branch Managers, MF Supervisor, RBAP/MABS

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Client Status Report

• Shows the credit history of the borrower (# of loans availed, loan amounts, # of payments missed, # days late, % of installments paid on time, status of current loan)

• Useful when evaluating an application for a repeat loan, or when determining what action to take against a delinquent borrower

• Divided into two parts- First: shows client’s repayment performance on

previous loans- Second: shows client’s repayment performance on

his/her current loan

• Frequency : As needed

• Users: Branch Manager, Supervisor, AO

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Other PAR Reports

PAR by Age and by Business Activity

• Analyzes repayment performance by type of business or economic activity

• Shows the number of delinquent loans by age and by business activity

• Useful when analyzing patterns or trends in loan delinquency- Is delinquency seen only in certain types of business or,

across all types of business?- Which business type has the most serious delinquency

problem? • Guides the MFU on what sort of business activities to market

to and what businesses to avoid• Frequency : Usually at the end of the month, but can be

generated anytime • Users: Branch Manager, Supervisor, AO

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PAR by Loan Amount and by Business Activity

• Shows the number of delinquent loans by loan size and by type of business

• Determines performance of borrowers by loan size

• Useful when analyzing which business type and what loan amount/cycle appear to have the most serious delinquency problems

• Frequency : Usually at the end of the month, but can be generated anytime

• Users: Manager, Supervisor, AO

Other PAR Reports

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Loan Profile by Gender

• Summarizes profile of borrowers by gender

• Compares repayment performance of men vs. women borrowers

• Determines whether gender is a significant factor in repayment behavior

• Funding sources may want data on the bank’s outreach to women

• Frequency : Usually at the end of the month, but can be generated anytime

• Users: Managers, Supervisors, funding agencies

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Comparison Across Reports

REPORT TITLE # Accounts

O/Balance

Amount O/Due

PAR PAR%

Listing of Loans

Delinquency Report

PAR Report

Interest Collected

MABS Monthly

Performance Report

PAR by Aging

PAR by Loans Disbursed

Loan Profile by Gender

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Comparison Across Reports

Report Title OLP Beg OLP End Total Revenue

Yield%

Listing of Loans

Delinquency Report

PAR Report

Interest Collected

MABS Monthly

Performance Report

PAR by Aging

PAR by Loans Disbursed

Loan Profile by Gender

Thank you!