micro finance strategic plan

8/17/2019 MICRO Finance Strategic Plan

1/25

RATISSON FINANCE STRATEG


2/25

CONTENTS

1. BACKGROUNDa) Context

b) Rat!!on Fnan"e St#ate$" %o&n'aton!

") Rat!!on Fnan"e Co#(o#ate D#e"ton

') B&!ne!! S"ena#o! Co&nt#*+ Fnan"a,

Se"to#+ Rat!!on Fnan"e

)2. STRATEGIC CONTE-Ta) St&aton A!!e!!ent %o# Rat!!on Fnan"e

b) C#ent S"ena#o! %o# Rat!!on Fnan"e

") Fo"&! Goa, %o# Rat!!on Fnan"e

') F&te !"ena#o! %o# Rat!!on Fnan"e

e) F&te B&!ne!! /o'e,

. STRATEG ORKINGS

a) C#t"a, S&""e!! Fa"to#! 3 Ke* Re!

b) I(,eentaton P,an!

)4. NE-T STEPS


3/25

BACKGROUND

RATISSON FINANCE STRATEGIC PLAN


4/25

BACKGROUND5 CONTE-T1) Rat!!on Fnan"e ! a !ta#t &( "#o7nan"e "o(an* an' 8a! 9&!t !&b

a((,"aton %o# a "#o7nan"e b&!ne!! ,"en!e :t8 t8e Re!e#;e Ban< o%=bab:e. P#o!(e"t! o% !&""e!!%&,,* obtann$ t8e ,"en!e a#e 8$8.

2) Rat!!on Fnan"e P;t) Lt' ! #e,ate' to B#an"e P;t) Lt'+ Fa#e#! a#e8oP;t) Lt'+ Sta$e /a!te# an' So&t8 Ba* P;t) Lt'. A,, t8e "o(ane! a#e :o:ne' b* t8e Rat!!o %a,*.

) T8e "o(an* obtan! t! nae %#o t8e :o#' >Rat!o?+ ben$ t8e o#$na!nae o% t8e Rat!!o %a,*. Rat!o ean! ;!on.

4) Rat!!on Fnan"e 8a! n8e#te' !oe a!!et! an' ,ab,te! %#o B#an"e T8e !8a#e8o,'e#! 8a;e #e'&"e' e@&t* n ot8e# "o(ane! an' e;en ",o!oe no#'e# to n;e!t n Rat!!on Fnan"e.

) T8e !8a#e8o,'e#! a#e not


5/25

BACKGROUND5 !t#ate$" %o&n'aton P(o!eDe!tn* an' a,&e!

P(o!e 5 >To "ontn&a,,* (#o;e t8e ,;e,8oo'! o% t8e "o&nte! :e o(et8#o&$8 8a!!,e %#ee a""e!! to "#e't an' (#o;!on o% "&!toe# %o"&!e' !e#;"

/!!on 5 >To "#eate an' "ontn&o&!,* n"#ea!e !8a#e8o,'e# ;a,&e t8#o&$8 t8e(#o;!on o% ex"e,,ent !e#;"e an' nno;at;e (#o'&"t! to t! "&!toe#! an' a

"on'&";e :o#C&!toe# %o"&!+ Inno;aton an' exb,t*+ Re!(e"t+ one!t*+ Inte$P#o%e!!ona,!?


6/25

P , a * 6 o G !

Re,e$aton =one

CO/PETITIENESSHE

INTERNAL

AR/ON

INTERNAL

CONFLIC T

P#ee# Lea$&e

-

Se"on' D;!on

Fa,e' State

Lagging Infrastructure development

Political Instability

Conflicting policy

Increasing rates of unemployment

100

0

0

CO/PETITIENESSE

2015

2015

2016

Increased

FDI

Stable

government

International

acceptance

T8e "o&nt#* ;a#ab,e! 8a;e been 'e7ne' a!t8e !ae a! So&t8 A%#"a+ ben$"o(ett;ene!! an' Inte#na, 8a#on* J"on"t. T8e!e ;a#ab,e (#o;'e %ea!b,e!"ena#o! :8"8 8a;e been 'e!"#be' be,o:%#o a =bab:ean Context.

1)Premier League T8! ! t8e a#ea! :8e#et8e "o&nt#*! "o(ett;ene!! 8a! (#o;e'!$n7"ant,* :t8 n"#ea!e FDI an' nte#natona,a""e(tan"e+ n t8e next %e: *ea#! t ! not %e,tt8at =bab:e :,, 8a;e #ea"8e' t8! !ta$e 9&!t %#o a((#e"atn$ :8e#e t8n$! a#e!ta#tn$ %#o a! !&"8 t8e "8an"e o% t8!o""#n$ b* 2016 8a! been #ate' a! 0%

2)Second Division In t8e !e"on' ';!ont8e "o&nt#* ! no: n a (,a"e o% nte#na,8a#on* a,t8o&$8 "o(ett;ene!! ! !t,,#e,at;e,* ,o:. In =bab:e! "a!e t8! ! ;e#*&n,


7/25

/ARKET HE

IGECONO/I

CGROT

LOECONO/I

CGROT

C#!!

Sta#Ca!8 Co:

Potenta,

/ARKET E

Telecoms

Mining (Non

Precious

Minerals)

Financial

Services

Manufacturing

Funeral

ssurance

!etail

Tobacco

ll "t#er

Insurance

•

gro $ased• Mineral %alue ddition

Mining

(Precious

Minerals)

2016

T8e n'&!t#* ;a#ab,e! 8a;e been 'e7ne' a! 8o: (a#


8/25

BACKGROUND5 "o#(o#ate '#e"ton %o# 20 Ta


9/25PREPARED B BRIAN KUFAAKUTI=I

S'&!-*" "ON!./ '&*SSON F*N&N"! "''!N S*&*ON &SS!

Key Areas Positives Challenges Compos

Funding

• de&uately capitalised'

• %ariety of funding internal and eternal

• Funding is limited'• !egulatory c#allenge'

• N" #ave conditions t#ey attac# to funding so target mar*et may not be our corebusiness and terms may not be conducive

• No N" bac*ed funding on our boo* so far

+,-

.or*ing ICTS

• N/

• No system in place at all'• No C!M for t#ere to be 01, degree vie2 of customers• No MIS for important business reports

• "nly 3 des*top in place 4 t#e t2o current managers use o2n laptops

,-

S*ills and !e2ards

• S*illed and eperienced top management

• Inade&uate staff compliment• "nly t2o staff members

• No loans officers5 receptionist and administration staff

• 6ifficult to segregate duties

• !e2ard system not mar*et related

• rading system not reflective of 2or* demands and s*ills level

3,-

Target mar*et gro2t#• Covering all target mar*ets'(Micro small to medium scale enterprises)

• Company not yet eposed to t#e difficult mar*et segments

• $oo* is s*e2ed to2ards agri7trade (tobacco) sector'• "ne client constitute greater t#an 8,- of t#e boo*

• Not fully captured t#e female and rural mar*et'(agriculture)

3+-

6elivery c#annel

• Collection arrangements'

• 9uic* turnaround time'• mbience of :ead offices'

• No branc# net2or*'• No systems in place 7 C!M

• 6isbursement c#allenges in areas 2e do not #ave presence'

• Manual systems 2it# a lot of paper 2or*'• No motor ve#icles for client visits and for efficient service delivery

0,-

Product innovation • .ide array of products to be introduced'• Convenience in terms of disbursements'

• Not competitively priced in MFI mar*et (2or*ing capital loans)'

• Loan tenure for 2or*ing capital is too s#ort'1,-

Commercial culture • 6aily performance trac*ing'• $usiness cases'

• Productive staff performance trac*ing'

• ppraising potential partners and revie2ing relations#ips'

• Focusing on core business'

• Lac* of proper mar*et penetration strategies'

• Inade&uate performance trac*ing mec#anisms (due to MIS)

1,-

Corporate governance • :ave an effective $oard• ood relations 2it# regulator

• Compliance levels 2it# regulator are satisfactory

•

$asic ris* mgt frame2or* in place'• d#erence to core client protection principles

• Compliance oversig#t is inade&uate (internal perspective)

• Need for company rating '

• S#are#older interference in operations

1+-

Rat!!on Fnan"e 8a! a!!e!!e' t! "#ent (o!tonn$ n ea"8 o% t8e!e a#ea!


10/25

"''!N *"'O F*N&N"! S!"O' S"!N&'*OS *,&,4!

PREPARED B BRIAN K

/"#oKn$ ! t8e o!t 'onant (,a*e# n t8! !e"to# at t8e oent.

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11/25PREPARED B BRIAN KUFAAKUTI=I

S'&!-*" "ON!. / '&*SSON FO"S -O&L 2016

>Penet#ate t8e ,o"a, a#


12/25

S'&!-*" "ON!./ '&*SSON 2016 S"!N&'*O

PREPARED B BRIAN KUFAAKUTI=I

In ,ne :t8 t8e %o"&! $oa, Rat!!on #e;e:e' an' a'o(te' t! %&te (#o9e"ton! o% :8e#e t :o&,' nee' to%o# t8e %o"&! $oa, to be a"8e;e'.

NO!S

Ba!e' on t8e 'e!#e' 2016 !tate+ R"on!o,'ate t! (o!ton n t8e 8ea,t8(,a"eent 8a! been $;en a 40 "#eann$ n t8e !tate o% O&t(atent40 "8an"e. An 20 "8an"e ex!t tFnan"e a* !,( nto t8e Inten!;e

P#ee# Toba""o 'e%a&,t! on t! %a"

T8e 'e!#e' !tate %o# 2016 8a! been(#e'ete#ne' %a"to#! an' t8e "o&n=bab:e :,, be n t8e *ea# 2016 :,, nee' to %o"&! on (enet#atn$ ne"a(tn$ ",ent! %#o "o(etto#! aa((ette %o# /"#o Fnan"n$ !o a! tot8e "a


13/25

Template Source: www.businessmodelgeneration.org

S'&!-*" "ON!./ '&*SSON ,S*N!SS OD!L "&N+&S


In ,ne :t8 t8e !et %o"&! $oa,+ Rat!!on :,, nee' to 'o b&!ne!! n a "e#tan :a* an' a! !&"8 a ("te o% o'e, 8a! been 'e7ne'.

Rat!!on :,, %o"&! $#o:n$ t! ",ent baon #ea, e!tate o:ne#!,e;e,! o% t8e n%o#an bot8 #a, an' ba$#"&,ta, !e"to# anb#a"

To 'e,;e# t8! ;a,&e+on a#


14/25

RATISSON FINANCESTRATEGIC PLAN 2016)

St#ate$

PREPARED B BRIAN K


15/25

O,

• Se"n$ ,ne! o% "#e't

• Co!t ana$eent

• Po#t%o,o $#o:t8

• A""e!! a''tona, "a(ta, %#o t8e !8a#e8o,'e#

• E!tab,!8 o(t& "a(ta, !t#&"te %o# t8e b&!ne!!

• Set &( ba"

• Ben"8a#< "o#(o#ate $o;e#nan"e !tan'a#'! a$an!t nte#natona,

ben"8a#

• Set &( ba"


16/25

OBECTIE I/PLE/ENTATIOPLAN 5FUNDING1 Focus &rea F&n'n$ an' (#o7tab,t* &ccounta:ilit8 anaging Direct

O:@ective Name 'aise adeAuate >unds >or on lending and ensure 7roBta:ilit8

o$ $ill $e ac#ieve t#is O:@ective

&ctivities and as?s imings "osts 'es7onsi:le Su77ort *n>orm

1 Ra!e ,on$ te# %&n'n$ %#oexte#na, 3 nte#na, !o"e!+ &ne201 4. + 10 De" 201.

On$on$ TBA /D F/+O/+ Boa#'

2 En!e &t,!aton o% a;a,e' ,ne!o% "#e't to t8e ,t

On$on$ TBA O/ F/+BD/+ O/ /D

Re'&"e "o!t o% %&n'n$ %#oa;e#a$e o% A&$&!t 201 to1M b* De" 2016

On$on$ TBA F/ O/ /D

4 Co!t "ontanent On$on$ TBA F/ OD! /D

En!e #e;en&e $#o:t8 n ,ne :t8ta#$et

On$on$ TBA /D F/+ O/ Boa#'

6 S"o&t %o# non %&n'e' n"oe "o!!on! %#o one* t#an!%e#a$en"e!+ $#ant! an' %ee! %o#a';!o#* !e#;"e!

/ont8,* TBA /D F/+ BD+ O/+ Boa#'

o$ $ill $e rac? t#e O:@ective

Per>ormance *ndicator FreAuenc8 o> easure nit o> easure arget

ROCE /ont8,*

Co!t o% %&n'n$ /ont8,*

Co!t to n"oe #ato /ont8,*

PREPARED B BRIAN K


17/25

OBECTIE I/PLE/ENTATION PLAN 5 ORKING IC

2 Focus &rea o#orm

1 I(,eent !*!te!+ /onto#n$ o%!*!te (e#%o#an"e an' en!e(#o(e# 'o"&entaton.

/a#"82016

TBA O(e#aton!/ana$e#

/D R!< an'Co(,an"eboa#'"ottee

2 I(,eent /ISERP+BI+ CR/ 60'e$#ee ;e:)

&ne2016


F/+ /D R!< an'Co(,an"eboa#'"ottee

/axe &t,aton o% a;a,e'!*!te!

&ne2016


F/+ BD/. /D

4 A"@&#e /FI !*!te /a#"82016

TBA /D O(e#aton!/ana$e#

Boa#'

D!b!eent! o;e# E"o"a!8+te,e"a!8 an' Ea,,et (,at%o#!

De" 2016 TBA O(e#aton!/ana$e#

F/+ BD/ /D

F&,,* #e!o"e' DRS De" 2016 TBA O(e#aton!/ana$e#

F/ /D

o$ $ill $e rac? t#e O:@ective

Per>ormance *ndicator FreAuenc8 o> easure nit o> easure arget

S*!te #e,ate' "o(,ant!. TBA 20

S*!te &(te TBA .

PREPARED B BRIAN K

OBECTIE I/PLE/ENTATION PLAN SKILLS AND REARD


18/25

OBECTIE I/PLE/ENTATION PLAN 5 SKILLS AND REARD

Focus &rea S


19/25

OBECTIE I/PLE/ENTATION 5TARGET /ARKET PENETRATION

4 Focus &rea Ta#$et a#or mar?et leaders#i7 and e7lore o77ortunities >or gro$t#



1 C&!toe# nee'! ana,*!! an'a#


20/25

OBECTIE I/PLE/ENTATION PLAN 5 DELIER CANNEL

Focus &rea De,;e#* "8anne,! &ccounta:ilit8 anaging Direc

O:@ective Name !nsure a77ro7riateE relevant and eCcient deliver8 c#annels


&ctivities and as?s imings "osts 'es7onsi:le

Su77ort *n>orm

1 S"an t8e a#


21/25

OBECTIE I/PLE/ENTATION PLAN5 PRODUCT INNOATIO

6 Focus &rea P#o'&"t Inno;aton &ccounta:ilit8 anaging Direct

O:@ective Name Provide 7roBta:leE a77ro7riate and relevant 7roducts



1 De;e,o( an' (a"


22/25

OBECTIE I/PLE/ENTATION PLAN5 CO//ERCIALCULTURE

Focus &rea Coe#"a, C&,te &ccounta:ilit8 anaging Director

O:@ective Name Promote a culture >ocused on 7er>ormance and strategic cost management


&ctivities and as?s imings "osts 'es7onsi:le Su77ort *n>orm "

2 B&!ne!! ana$eent !o%t !


23/25

OBECTIE I/PLE/ENTATION PLAN 5 STRONG CORPORATE GOERNAN

M Focus &rea St#on$ Co#(o#ate Go;e#nan"e &ccounta:ilit8 D

O:@ective Name !nsure 100% com7liance $it# internal and eternal regulations



1 De;!e onto#n$ an' e;a,&aton

too,! %o# "8e"


24/25

• ;,- of staff ac#ieving

targets at eac# level

• 1,- Cost< Income

ratio

• 3,,- Compliance to

regulations'

• +- P! greater t#an

0, days

• verage product

profitability 0;-

S t r o n g c o

r p o r a t e g o

v e r n a n c e

= n s u r e 3 ,

, - c o m p

l i a n c e 2 i t

#

i n t e r n a l a

n d e ( t e r n

a l r e g u l a t

i o n sF u n d i n g

! a i s e a d e & u a t e c a p i t a l a n d

e n s u r e p r o f i t a b i l i t y

P r o d u c t i n n o v a t i o

n

P r o v i d e p r o f i t a

b l e 5

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p r o d u c t s

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= n s u r e a p p r o p r i a t e 5 r e l e v a n t

a n d e f f i c i e n t d e l i v e r y c # a n n e l s

T a r g e t m

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u l t u r e

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I C T S

6 e p

l o y

r e l e v a

n t a

n d r o b u

s t I C T s

• =stablis# satellite branc#es/*ios*s for selected regions

• Implement an outreac# frame2or* 2it# business members#ip

organisations

• 6evelop interactive 2ebsite and C!M module

• =stablis# standardised information meetings

• !e>one catc#ment areas for branc#es and loan officers'

• Financial management 2or*s#ops for managers and

eecutives

• $usiness management soft s*ills

• 6evelop partners#ip 2it# development organisations

• Training on sales at all levels

• Mar*et5 Product and pro?ect viability analysis before

launc#

• Standardi>ation of processes and systems

• 6evelop incentive sc#eme and performance a2ards

• =nsure &uic* turnaround (ma + days on all loans))

• verage profitability

of 0+- per c#annel

• 3+, Case load per

Loan officer

• @,- Location

coverage

• 6evise monitoring and evaluation tools for c#ec*ing

ad#erence to client protection principles

• =ngage a eternal rating agent

• 6evelop internal compliance function

• 6evelop and implement credit policy

• =stablis# relations#ip 2it# t2o credit bureau

• 6evelop and adopt social performance monitoring tools

• 6evelop and implement appropriate social corporate

responsibility programs

• Intensify recoveries efforts and create/maintain an internal

blac*list'

• =nsure ad#erence to covenants set by financiers

S * i l l s

a n d

! e 2 a r d s

t t r a c t

a n d

r e t a i n

# i g # l y

e f f i

c i e n t s * i l l s

i n t

# e

r i g # t

p l a

c e s

STRATEG I C OB J E C T I V E S

Strategy@Work Summary

2015 - 2016(.#o are 2e5 .#ere are 2e going and #o2 2ill 2e get t#ereD)

s

• Customer needs analysis and mar*et segme

in order to offer appropriate products

• Identify and create associations to i ncrease o

• Identify and develop pro?ect activities 2it# N

development partners

• !educe eposure to Premier tobacco to 3,-

boo*'

• 6evelop client retention strategies 4 Loyalty

programs

• 6evelopment of systems and ensure proper

documentation'

• Implement MIS(=!P5$I5 C!M 701, degree v

• Maimi>e utili>ation of implemented systemsystems5 Coretal*)

• c&uire MFI system

• =nsure IT training for all staff

• Commence disbursements over mobile bas

platforms li*e =cocas#

• Fully resourced 6!S

• !aise long term funding from eternal E inte

sources5 6ec B,31'

• =nsure utilisation of availed lines of credit to

• !educe cost of funding from average of 0+-

to 3@- by 6ec B,31

• Cost containment

• =nsure revenue gro2t# in line 2it# target

Customer focus !espect :onesty and Integrity Innovation and Fleibility Professionalism

P#RP$S%

GTo continually improve t#e liveli#oods of t#ecommunities 2e operate in t#roug# #assle free

access to credit and provision of customerfocused serviceH

&ISSI$'

GTo create and continuously increases#are#older value t#roug# t#e provision of

ecellent service and innovative products to itscustomers and a conducive 2or*ing environment

in 2#ic# every employee is encouraged andassisted to develop to t#eir full potential'H

F$C#S $A) *0+

GPenetrate t#e local mar*et offering sustainableand innovative microfinance solutions G

• 6evelop and implement effective staff 2ellne

initiatives to increase staff engagement level

• 6evelop and implement incentive system in

international best practices to re2ard perform

• 6evelop and resource structure in line 2it# s

• !evie2 ?ob descriptions

• Conduct a ?ob grading eercise

• Implement an effective training program for

and bac* offices'

• 6evelop and Implement a staff rotation syste

• =nsure effective implementation of performa

management system

• =nsure effective leave day management sys

• 6evelop and pac*age product offering'

• Conduct mont#ly product performance monitoring

• 6evelop and pilot 0 ne2 products annually' (:ousing 6evelopment loans5

=nergy Loans5 sset Finance5 order finance5 6airy Finance etc')

• Introduce start7up entrepreneurs#ip loans

• Product 6iversification 4 6evelop advisory E Training services pac*age

•Set and continuously revie2 business conditions

&'!&S 4* ,*--!S ,S*N!SS *P&"


25/25


&'!&S 4* ,*--!S ,S*N!SS *P&"

1. Goo' ,ea'e#!8(

2. S*!te

. Ina'e@&ate %&n'n$

4. /a"#oe"ono" !t&aton

. Ca(a"t* to !e#;e a#

micro finance strategic plan

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