SACCO SYSTEM BRIEF. By Tovuti Group Ltd

Transcription

1 1 SACCO SYSTEM BRIEF By Tovuti Group Ltd

2 2 About us WHO WE ARE Tovuti group is an innovative IT company whose sole purpose is to TOVUTI IN BRIEF simplify business management via software solutions that are easy to use, easy to deploy and easy on your budget, yet comprehensive enough to meet and surpass your business needs. Our main aim is to ensure your business is not held back by the lack of modern Company Founded Work Presence Projects Done Headquarters technology. In a nutshell, we provide technology that is designed to work with and for your business. Technology that is simply OCT Countries 25+ Nairobi indispensable for any retail business seeking to grow its revenue. OUR MISSION Is to provide world class retail ICT solutions to business with an aim of improving efficiency, growing the business brand, increasing revenue and hastening the rate of return on investment. Our Value Proposition To grow your business revenue while reducing operational costs and increasing efficiency. VISION Our vision is to be the preferred retail ICT solutions provider in east and central Africa with a presence in all the countries in this region

3 The Sacco Solution Summary Our sacco solution is designed to offer financial inclusion by providing the core functionality needed to deliver financial services to Saccos, Microfinance and other financial institutions. The solution can be deployed in any environment: cloud or onpremise and is extensible enough to support any organizational type. It provides client data management, loan and savings portfolio management, integrated real time accounting and social and financial reporting needs to bring wholesome digital financial services to a financial organization such as a Sacco. 3 System Overview Financial institutions deliver their services to customers through a variety of means today. Customers can call direct into branches (teller model) Customers can organize into groups (or centers) and agree to meet up at a location and time with Finance Institution staff (traditional microfinance). A Finance Institution might have a public facing information portal that customers can use for variety of reasons including account management (online banking). A Finance Institution might be integrated into a ATM/POS/Card services network that the customer can use. A Finance Institution might be integrated with a mobile money operator and support mobile money services for customer (present/future microfinance). A Finance Institution might use third party agents to sell products/services from other banks/institutions. As illustrated in the diagram, the various stakeholders leverage business apps to perform specific customer or Finance Institution related actions. The functionality contained in these business apps can be bundled up and packaged in any way. In the diagram, several of the apps may be combined into one app or any one of the blocks representing an app could be further broken up as needed.

4 How it Works Members & Client Management 4 Registration and Accounts The proposed solution allows for creation and management of Members and Clients of the Sacco. Some of the details managed includes. : Clients Personal Information(Name, Date of Birth, Client Activation Date. etc) Client's Loan Portfolio (All the loans that particular client has, including the status of those loans, Repayment schedules, transactions, etc) Client's Savings Portfolio Clients additional details The documents submitted by the client. Client/ Member beneficiary details capturing Client/ Members Share definition. Assigned Staff. Clients and members can be registered as individuals, entities or groups.

5 How it Works Share and Contributions 5 For Managers, Admins & IT Personnel Administration Dashboard The proposed solution allows allocation of shares to members. Its also provides the ability to give contributions in the from of member savings. Allocation of share is done via a share products facility that defines the rules, default settings, and constraints for the Sacco s shares and dividends. The share product facility also provides definition for multiple accounts that are, or will be, held by the financial institution's clients. The following data is captured as part of a share definition. Share currency Share allocation multiples e.g. 100, 200 e.t.c. Total number of shares to be issued Share nominal price value Share capital value Minimum shares per client Maximum shares per client Minimum active period to receive dividends Share Lock-in period where withdrawals are not allowed Share market price defined for a specific period

6 6 How it Works Loan Management Overview Loans are managed via loan accounts. A loan account is an instance of a loan product. A loan account has a unique account number, a specified interest rate, and it is owned by one, and only one, client or group. A loan account can be created for an active client or group based on a loan product that is active on the submitted date. When a loan account is created, it inherits the rules and defaults from the loan product. Your financial institution may allow some of the inherited information to be modified for a loan account, depending on how the loan product is defined. When a loan has been repaid in full, regardless of the payment method, its status will be changed from Active to Closed (obligations met). The loan account lifecycle is illustrated in the system Loan Account Lifecycle diagram. Loan account statuses are visually indicated in the system using the colour scheme illustrated in the Loan Account Lifecycle diagram. Group Loan Accounts There are three main types of loan account for groups: a group loan, a joint liability group (JLG) loan and a Bulk JLG loan for a group. Group Loan account: This is a single loan account shared by all members of a group. Members of the group are jointly responsible for repaying the loan. JLG (Joint Liability Group) loan account: This belongs to an individual who is a member of a group. The individual has primary responsibility for repaying the loan, but the group, in effect, guarantees the loan. Bulk JLG Loan Account: This gives the ability to apply a JLG loan to multiple clients in a group. Loan Account Repayment Individual repayment processes allow client, group, and JLG loan account repayments to be recorded against one loan account at time. These payments may be made through: Repayment of cash or similar negotiable payment type One-time transfer of funds from a Saving account to a Loan account Standing orders to transfer funds from Saving account to a Loan account Group repayment processes are available for group and JLG loans. The group processes leverage the collection sheet, which is a bulk processing methodology for group and joint liability group loans repayments.

7 How it Works Loan Guarantees 7 Loan Guarantees The proposed solution allows for member to self guarantee or have other members guarantee their loans. As part of Loan Guarantor definition, the following will be captured; Place Guarantee Funds On-Hold This will lock the guarantors funds for the duration of the loan Mandatory Guarantee(%): This is to provide total % of loan amount as mandatory guarantee. Eg 20 %. Minimum Guarantee from Own Funds(%) Eg, 10 % of loan amount from Own funds. Minimum Guarantee from Guarantor Funds(%) Eg, 10 % of loan amount from Guarantor Funds. One or more guarantors can be added to a loan account application when it is Pending Approved or Approved. Guarantors may be, but are not required to be, clients.

8 Solution Core Features 8 Clients, Groups, and Centers All features related to the creation and management of these entities and their movement through a state process flow (partial application, pending approval, approved/active, on hold, closed, canceled). Uniqueness check for clients as per government ID Loan cycle at client level Support for client photos Move groups & clients to different centers and/or branches Add notes to client, group and center detail pages Charge clients, groups, and centers penalties and one-time and periodic fees Assign group and center officer titles to clients Support for individual clients outside of groups and centers Support client/ member beneficiary definition Branch-level holidays and loan moratoriums Loan Products & Loan Accounts Support for group and individual loans Define unlimited number of loan product types Interest calculations: Flat, Declining balance equal monthly installments (EMI), Declining balance - equal principal installments, Declining balance - interest recalculation Loan defaults based on previous loan amounts or cycle Define grace periods for full loan repayments and for principal payments Support for periodic fees, fees deducted at disbursement, one-time fees, and penalty charges Support for early & partial loan & fee repayments Display of loan repayment schedules and detail loan account activity pages Automatically change loan account state: good standing, arrears, closed. Repay total loan at any point in loan cycle Add notes to loan records Support for back-dated payments Savings Product & Accounts Define an unlimited number of savings products Set-up "Voluntary" or "Mandatory" accounts with specific minimum deposits for mandatory accounts Add notes to savings record Specify "auto creation" of savings accounts when a client is approved and made active Work Flow & Risk Management The solution gives you complete control over the activities of your employees. Work processes can be broken down into required steps and all activities can be recorded and searched. Work roles can be defined with very specific permissions allowing you define and manage user access to information and decisionmaking and user passwords & log-in can be controlled. Configurable work flows Role-based permissions Maker-checker work flows Searchable audit trails Reports The solution comes with standard reports generally categorized into six groups: Clients, Loans, Savings, Funds, Accounting and XBRL Some of the standard reports include; Active Loans Details & Summary Active Loans by Disbursal Period Aging Details & Summary Balance Outstanding Balance Sheet Client Listing, Loan Schedule/ Listing, Saving Transactions & Summary Collection & Disbursal Report Expected Payments By Date Funds Disbursed Between Dates General Ledger Report Income Statement Loan Account Schedule Loan Transaction Receipt Loans Awaiting Disbursal Summary Obligation Met Loans Details Portfolio at Risk Savings Transactions Trial Balance Transactions Running Balances Written-Off Loans

9 9 How we do it We start by brainstorming the needs and specific challenges of your Sacco 1. Brainstorm We handhold & help you market the solution to existing and new customers. 3. Deploy & Market We continuously evolve the solution to take advantage of emerging trends & customer needs. 5. Keep Learning & Changing 2. Innovate & Build We customize our solutions to best fit your needs 4. Review & Learn We review performance and learn from customer feedback/ market reception

10 System Evolution Timeline 10 The proposed solution can evolve with time as your organization grows. Back office and Front office/ Teller applications Advancement of customer/ member self service portal Customer/ member mobile app development USSD Service integration Phase 1 MICROFINANCE SERVICES Ultimately SACCO SERVICES Customer/ Member Self service portal Phase 2 ATM/ Card Services Agency banking services Mobile money services. FULLY FLEDGED BANKING SERVICES

11 Why Work With Us We re Highly Innovative We are always coming up with ways to make sure our solutions fit your business environment. Whether this requires a change in technology or equipment, you will always be guaranteed of a solution that can work without loosing the bigger picture. We Deliver Quality We work with one team principle i.e The customers businesses processes must always guide how our solutions work. We strive to ensure that our products always conform to market and industry standards. We Are Flexible We understand that even after a thorough solution specification, new needs and requirements will always arise. We strive to adapt our solutions to cover any new developments that are of importance to you. Whether introduced after the projects starts or even after completion. We re #1 In Customer Satisfaction Our customers come first in everything we do. We ensure that you get support as you need it, when you need it. No limiting or capping of support hours. We understand that when you fail we fail too.

12 Our Contact Info 12 TOVUTI GROUP LIMITED Cassia Court, A2, Kiambere Rd. Nairobi, Kenya Web: Telephone: