it/innovation fejér enterprise agency - European-microfinance.org

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INNOVATIVENESS There are no other systems like this in Hungary. It is innovative because it was developed by using the most advanced technologies. It provides complex services (on-line credit application, management analysis, business partner search, micro-site, complete intranet credit assessment management system for the MFIs, etc.) for the various actors involved in enterprise development (MFIs, microcredit clients, advisors, credit brokers, book-keepers, etc.). A complex educational portal is also connected to the system. IMPROVEMENT Approximately 15 MFIs use various modules of the system officially. The Hungarian fund manager (and the Hungarian Financial Supervisory Authority) accepts the use of the system and the data-supplier interface in the JEREMIE microcredit programme. With regard to the fact that FEA (the developer of the system) is a user of the system itself, it is interested in further developing it. The developer of the system has opened access to the system for the international users and is seeking further co-operating partners. The essence of the developing concept is that the developers are not developing commercial software, but are themselves the users of the system and they finance the maintenance and development of the system together on the basis of a joint interest. The business concept of the software developing company is to develop a system providing high-quality services for the co-operating partners in such a manner that it does not charge exorbitant development fees since it is interested in operating the system in the long run. Thus, it finances the continuous development activities by involving more co-operating partners that pay a lower maintenance fee. Currently, the developers are searching for more international partners. For further information visit their website at info@credinfo.eu. EFFECTIVENESS / EFFICIENCY Modules of the internet-based microcredit management system are used by approximately 15 Microfinance Institutions in Hungary. The internet based enterprise development system was introduced in September 2009 in the Economics Courses at secondary and higher level education in Székesfehérvár. FEA Microfinance Outreach Achievements: Dec06 Dec07 Dec08 Dec 09 Active borrowers 89 69 73 69 No. of active loans 329 289 250 261 Average Loan Size € 11,320 € 16,445 € 15,292 € 14,074 Portfolio € 2,905,458 € 3,223,127 € 2,309,141 €2,962,962 Sub-offices Staff (excluding sub- 7 7 11 11 offices) 10 10 6 Credit officers (excluding sub-offices) 3 4 3 Good Practices gathered by EMN – IT/Innovation - February 2010 4 6 3
ADAPTABILITY / REPLICATION Modules of the internet-based microcredit management system are used by approximately 15 Microfinance Institutions in Hungary. The system provides electronic services for both the MFIs and their clients. FEA aims to expand the use of this internet-based technology at an international level with the support of the European Microfinance Network. SUSTAINABILITY FEA is funded by public funds (local and central Hungarian government) and income from its microcredit programmes. In the past five years 52% of the income of FEA has come from the microfinancing activity. Due to the deteriorating economic conditions in Hungary (the availability of alternative income sources has narrowed down), the importance of microfinancing has increased and in 2009 this income ratio might exceed 90%. In order to sustain the operation, FEA is striving to involve as many microfinance donors as possible. It also makes an effort to increase its efficiency by optimising the number of operating staff and the organisational structure (thus optimising the proportion of internal and contracted workers). FEA also pays particular attention to credit approvals. MFIs using modules of FEA’s internet-based microfinance management system pay a monthly maintenance fee to the software operator to maintain and update the system (€280 per month). FEA has provided the use of certain modules of the system to other enterprise development agencies and MFIs, free of charge. USEFUL LESSONS FEA has found that the development concept and the direction it is going is the right one. At the moment FEA is working on the development of a multimedia help function, which will simplify the individual parts, in particular, the process of credit application. FEA would like to integrate the multimedia help function and the customer service function. It also intends to strengthen the CRM services within the system. Sources Website: • www.fea.info.hu Documents: • Giordano Dell’Amore Microfinance Best Practices Award 2009: The experiences of the finalists Good Practices gathered by EMN – IT/Innovation - February 2010 5
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it/innovation fejér enterprise agency - European-microfinance.org

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