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Increased Business Volume & Multi-Entity Option

THE CLIENT MANAGED TO INTEGRATE MULTIPLE SYSTEMS AND INCORPORATE MULTI-ENTITY OPTION IN ONE PLACE, WHILE WORKING WITH ASPEKT PRODUCT SUITE

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Summary

This CLIENT is a non-profit microcredit organization, established in 1996 and works with the mission to reduce economic causes of poverty in the origin country. The CLIENT provides financial services and technical support to borrowers with no access to bank services and businesses willing to create new jobs. Working with the cause to help socially excluded groups, the CLIENT manages to be one of the best performance MFIs on a global scale, with 68 branch offices on the entire territory of the origin country.CLIENT has been awarded by the “The smart campaign – keeping clients first in microfinance” with “Client Protection Certification” as a proof of the strong and trustworthy relations this MFI has with its borrowers and that this trust comes from the fact that the financial help had crucial impact on their life.

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Challenge

This MFI operated as a successful organization which had accomplished many valuable results, but for that success to happen the CLIENT included resources way beyond the optimal. A lot of human resources were used to accomplish tasks that could have been done with less human effort and more technological advantage.Previously, the CLIENT had been working on several decentralized systems, the processing of applications was done in internally developed web application processing system, decentralized from loan generation which was done in a separate system specialized for banking industry and the accounting operations in another system.

Looking to increase the operations further and with a plan for future expansion into acquiring new entity (L.L. Company), the CLIENT required one centralized system in which to integrate and unify all operations and of 2 different types of entities (Foundation and L.L. Company) with different regulatory requirements.

The CLIENT received detailed explanation of ASPEKT technological possibilities and expertise, ensuring that ASPEKT can respond to their complex requirements.

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Solution

With the implementation of this solution, the CLIENT succeeded to integrate several decentralized systems. The project was planned in cooperation with KPMG Consultancy as intermediary side.ASPEKT assured to understand all operational obstacles of the CLIENT and adapted the Aspekt Product Suite to CLIENT’s specific business processes, integrating all operations on one location, including all core business and supporting operations.

Due to acquisition of new legal entity, the multi-company functionality was introduced. Based on agreed migration strategy, the complete past and current portfolio of both entities were migrated from 2 different Application Processing Systems, 2 Loan Tracking Systems, 2 Different Accounting System and centralized into one integrated solution.

  • The CLIENT received a complex Process Management System that leads users through the process flow and suggests next actions, with the ability to dynamically adapt the process flow, from user interface.
  • The integrated Credit Scoring Module has an adoptable approach of dealing with score card definition and weight parameters directly from user interface, with integrated Dynamic Data Collector for automatic calculation of score results and automatic ranking, based on predefined ranging scheme.
  • Authorized users are able to link questions from Spreadsheet files, directly into the Credit Scoring Cards for further analysis.
  • With the Social Performance & Impact Management Module, the CLIENT resolved one of the main issues when dealing with overview of borrowed money, supporting the complete process from defining social parameters, managing and measuring social impact of Loan Products and complete portfolio, in compliance with Mix Market Standards.
  • Due to the Flexible Product Policy, the CLIENT can assign different Score Cards directly on Loan Product Definition and analyze different types of parameters for every loan product.
  • The CRM Module is vertically integrated with the other modules in the solution, allowing structured tracking of activities by combining borrower’s information from different parts. In that manner the CLIENT can have real time information about borrower’s repayment status at any point of the collaboration process, written, verbal and SMS conversation history, assigned agents, legal activities etc., all on loan level. With Lead Management, the CLIENT can measure success rate of agents and engaged resources until converted to sales, by assigning potential leads to individual agents.
  • The Action List allows management of Time to Yes, Time to Cash, by tracking the time of each step in process flow and analyses of the activities where it’s loosing most of the time in order to define actions for improving staffs’ efficiency.
  • With the automatic and flexible Accounting System, CLIENT’s accountants engage optimal time for processing financial data. The consolidation among corporate departments and processing of complex financial analyses is minimized with only several clicks.
  • The organization of the data is designed in a way that the CLIENT receives fast and in-time generation of the analytic and synthetic management reports.
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Results

The CLIENT managed to streamline the complex operations that are performed on a daily basis, saved a lot of time on single-entry system and received extra advantage with the possibility for managing two entities in one system. The benefits are viewable in the employee performances which are on a higher level compared to previous work methods.

  • Top Management received better insight into organizational and individual employees’ performances, creating options for attracting new investors more easily.
  • With the multi-company option, operational results for two different entities are followed from central location, easily comparable and more time-effective.
  • Operational Managers prepare external reporting always at the beginning of every month, consolidated among accounts and in structured report view according to institution’s requirements.
  • With automated and predefined Credit Scoring cards, Loan Officers can combine statistical with subjective decision-making methods, by observing the Score Card results which are generated automatically and have an informative role in the business process flow, allowing exceptional conduct.
  • Front Office employees are more efficient by collecting data on field/site visit, through mobile tablet devices, lowering the time required from performing initial borrower analysis from several days to several minutes.
  • Accountants have better financial insight into borrowed money, as the financial data is better represented and analytic reports are ready-to-use at any time.
  • With automated risk forecast process, Risk Officers can easily compare results for payments allocations, portfolio at risk and delinquency reports, eliminating the threat of risky decisions.
  • Social Performance Reports provide better representation of work performance and provide information on how to attract more investors.
  • System Administrators maintain complete control over the solution by dynamically managing it from user side and tracking user activity with the Log Audit platform, which allows them to receive detailed information about time, user and action performed in the system.

Furthermore, the overall borrower’s experience is improved and borrowers are served faster with shorter decision-making time.