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-DocumentsSMS 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 placeGood portfolio tracking and monitoring systems 1 million credit customers and 2 million Insurance

transactions are processed in a month½ 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 parametersTo 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 MIS100% Automation of all business/functional

areasIntegrity 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 requirementsFunding agencies reporting Customer MISService Delivery Internal Controls

Field staff information..

Loans appraised/sanctioned Vs disbursement particulars

Day wise collection statementsLoans overdue reportsPortfolio 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’sRepayment %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 detailsIncome (Interest earned on loans)

particularsTrial 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 fieldTo reduce the transaction costAutomate until the last mile of the financial

transactionTo 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 optionsOpen 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 usefulIT together with Institutional Support is mandatorySelection of Technology and IT partner Adopt IT as a strategy and align with business needsBe practical in your thinking and have patience

during implementation and stabilization of system An MIS will not meet all the flexibility hoped forGood Project management and documentation

practice Involvement of all user groups in system

development/Implementation Continuous training to the end user

Assess your IT needs Initiate the process Acquire good IT Solutions Adopt IT in your business Make your life simple ..

Suggestions to the sector, out of experience..

rvarghese@basixindia.com,

www.basixindia.com

Thank You..