system automation in finance and livelihood leveraging ict for micro-finance subodh gupta safal...
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System Automation in Finance and Livelihood
Leveraging ICT for Leveraging ICT for Micro-financeMicro-finance
Subodh Gupta
Safal Solutions Pvt Ltd
Systems Automation in Finance and Livelihood
Outline Deterrents in scaling up of Micro-finance Leveraging ICT to reduce deterrents Automation in MFIs & LPOs
– SaralMAP – Case I– SafalPACS – Case II– BASIX ITSL: Sudama Card – Case - III
Learning
Systems Automation in Finance and Livelihood
Deterrents in scaling up of Micro-finance
Thinly spread out operations Smaller size of operations Higher transaction cost Multiple models of Micro-finance Higher risk in agriculture loan Clients often illiterate, socially and
economically disadvantaged
Systems Automation in Finance and Livelihood
Leveraging ICT applications to reduce deterrents
Use of automation in capturing, transferring and processing of transactions
MIS to meet timely information needs of the management, governance and the customers
Development of flexible financial products combining saving, lending and insurance that meet the requirement of customers and also reduce the cost of transaction
Automation of retailing of financial services of multiple providers through single delivery point
Systems Automation in Finance and Livelihood
SaralMAP PRADAN – Case I PRADAN is a Livelihood Promoting
Organization (LPO) and operates through 19 teams and 3 support cells spread over 7 states.
PRADAN wishes to monitor 150 indicators of SHG promotion, Livelihood promotions and Infrastructure creations
Data comes in Excel sheet from 22 teams and is then manually aggregated into master excel sheet
Systems Automation in Finance and Livelihood
Continued Problems with the existing systems
– Human errors while entering data again and again
– Problems in tallying numbers– Data of many indicators not reported– Valuable time of meetings spent in correcting
the data – Use of names differently – Chaibasa some
times called West Singhbhum
Systems Automation in Finance and Livelihood
Continued SaralMAP – an affordable solutions for
PRADAN– Six data panes designed after system understanding
and discussion with PRADAN senior staff. They capture 60 indicators.
– It has a data entry module at the team level these data can be updated periodically. It generates one excel sheet to be sent to HO
– There is data consolidation module that consolidates these 60 indicators
– SaralMAP is ready with the data for the meetings– It also provides online analytical tools for min, max,
average, standard deviation
Systems Automation in Finance and Livelihood
SafalPACS – Case II District Central Cooperative Bank, Bidar has 171
PACS. Average accounts a PACS handles is 800-1000. All the books are maintained by CEO of PACS manually
PACS delivers Kishan Credit Card loan, SHG and BDP loans. It also provides fertilizers and grocery items like wheat, sugar and K oil.
All the problems of manually maintained accounts – time spent in correcting, reports not ready on time etc
Systems Automation in Finance and Livelihood
All financial transactions
Down load dataWhen needed On dial up line SafalPACS
@ DCCB Branch
Balance sheetP<rail BalanceLedgerVouchers
SafalPACS@ PACS
Systems Automation in Finance and Livelihood
Case II continued SafalPACS is a package where there are two sets
of software – one sits on iStation a hand held device and the second sits on a PC located in the Bank branch of DCCB.
Day to day transactions are entered online on iStation and monthly balance sheet, P&L, Stock book are printed in the PACS
For SHG, Digitized Demand information (DIDI) sheet is printed and updated at PACS level
Depending on transactions, data is transferred on dial up line to DCCB branch PC.
Systems Automation in Finance and Livelihood
Case II continued
Advantages of SafalPACS– Affordable solutions for automation at PACS
level– Low power and low maintenance requirement
and low bandwidth, Hence one need not wait for long
– Advantage of automation – timely reports, elimination of human error
Systems Automation in Finance and Livelihood
BASIX ITSL: Sudama Card- Case III
Objective: Delivering credit to the poorest in commercially viable way
PCO booth operator is authorized to deliver credit as per a guideline and capture the transactions through a card reader and a smart card named as Sudama card of the borrower
Systems Automation in Finance and Livelihood
Case III Operational model
FAMIS2000
BASIXPOT
Sudama Server
Loan Defin
ition
Approval
Update Server
Sudama CardDisburse Loan
Card feesRepayment
BPA Bank Account
Systems Automation in Finance and Livelihood
Case III continued
Advantages –– Delivery channel cost is reduced and capacity
of the channel enhanced– Reduced the cost of transaction– Creates platform for delivering innovative
financial products combining credit, deposit and insurance
Systems Automation in Finance and Livelihood
Learning and Conclusion
Making of micro modules and loading them on thin devices that needs less power, less maintenance and low bandwidth
Develop innovative financial products combining deposit, credit and insurance for better margin
Automation for retailing the financial services through PCO booth has more relevance in future
Braking of the processes and braking down the technology provide the right mix for micro finance recipe
