Automation of SACCOs - FSD Kenya

40 • AUTOMATION OF SACCOS: ASSESSMENT OF POTENTIAL SOLUTIONS
Cost: With regard to cost, Craft Silicon claimed they consider their customers’
financial circumstances, get an understanding for the available budget, and
then make a reasonable proposal. Their cost estimates for the two standard
SACCOs were found to be relatively low, when compared with the other
vendors. Craft Silicon provided the second lowest figures to Amtech. A SACCO
willing to acquire Bankers Realm would need to confirm the specific price for
an implementation of the system in their organisation with Craft Silicon.
Application maintenance and support: As for implementation
support as well as ongoing application maintenance, Craft Silicon is deemed
to be a satisfactory partner, having a substantial local presence. More than
approximately 150 staff in the Nairobi office are dedicated to supporting
Bankers Realm. Walking through the vendor’s premises conveyed a positive
impression of the company and the support structure in place. Procedures with
regard to defect management, testing, documentation, and deployment were
considered mature and proven. Necessary tools such as a defect management
system existed. Moreover, Craft Silicon has completed numerous and diverse
implementations in the region’s SACCOs and MFIs and are therefore deemed
to have gained profound industry knowledge. Craft Silicon is currently building
a new office building in Nairobi and aim to increase staff base count to about
400 staff in the near future.
recommendation: To conclude, the project team feels confident to include
Bankers Realm MFO into their recommendation of viable SACCO automation
solutions, regardless of a SACCO’s particular type or size.
2. EasySacco (Amtech)
Fulfilment of requirements: EasySACCO is a SACCO-dedicated system,
deemed to be capable of supporting a SACCO’s core operations. The FOSA
module is found to offer the key features a SACCO requires, such as teller
module, overdraft facility, etc.
EasySacco has a module that enables customers to access their funds via the
Co-op Bank ATM network. Amtech claims that VISA enabled ATM or POS
devices are also supported. However, the vendor is not found to have the same
experience in the area of mobile banking, i.e. the integration of the application
with POS devices and mobile phones - Craft Silicon or FinTech. While the loan
application process is generally enabled by the system, some shortcomings
could be observed. The process cannot be easily configured and loan appraisal
is insufficiently supported by the system. On the other hand, the system offers
flexible loan scheme definition, the ability for remote loan approval, and
reports that help to follow processed applications.
During the assessment the project team raised concerns about the data model
of the application with regard to the storage of customer data. It was unclear
whether customer data was stored in two separate database tables for FOSA
and BOSA or in a single one. Subsequent to the assessment Amtech claimed
that the database structure is integrated for FOSA and BOSA. Any buyer is
encouraged to review the database structure prior to a purchase to ensure that
the IT fully supports the SACCO’s processes with no adverse gaps between
the FOSA and BOSA. The member number is no longer a unique identifier for
a customer throughout the whole application and a user needs to consider
the national identity card (ID) number simultaneously to identify a customer.
EasySacco was considered flexible with regard to setting up different products
although configuration did not seem straightforward in all cases. However,
the system could not prove to be as flexible as other solutions, e.g. Abacus.
Positively noted was a feature that allowed the set-up of different mappings
for data import using a drag and drop wizard as well as the functionality to set
up reminders for defined events.
The user-friendliness of the solution needs improvement. Screens are not
completely consistent and their flow is not logical, e.g. FOSA being an item
in the general ledger (GL) menu. The wording is not fully consistent and can
be confusing. Field labels, drop-down menus, and error messages need to be
clearer. The system does not guide the user sufficiently with regard to correct
manual entries as it allows the user to choose impossible combinations, e.g.
withdrawal and credit. Not all fields are populated automatically, which
increases the risk of incorrect data entry.
Cost: Amtech was invited to the final demonstration as their response to the
RFI gave a good impression and as they were deemed capable of providing a
more cost efficient solution for a SACCO that cannot afford a high-end system.
Indeed, Amtech’s cost estimate for the two standard SACCOs proved to be
the lowest of all vendors. However, Craft Silicon quoted a similar price for the
smaller of the two. As a cost advantage cannot be realised and Bankers Realm
is considered a stronger solution, the project team would not advise choosing
Amtech’s solution EasySacco, but rather Bankers Realm which also offers more
possibility for growth. For the larger SACCOs, Amtech’s proposal clearly offers
a cost advantage, their estimated cost amounting to 50% of Craft Silicon’s or
40% of Fintech’s figures, respectively. However, the vendor does not have
a track record of multi-branch installations which these two vendors have
subsequent to the assessment, Amtech alleges that they have successfully
connected up to three branches. In case a SACCO with multiple branches is
interested in acquiring EasySacco, it is encouraged to visit one of the live sites
recommended by Amtech for reassurance.”
Application maintenance and support: As for implementation
support and on-going maintenance, the vendor seems to have the right
strategy. Amtech reports that it has 22 permanent staff spread over Nairobi,
Kericho, and Eldoret offices, claimed capable of supporting implementations
of EasySacco. Having completed almost 20 implementations in diverse
Kenyan SACCOs, Amtech is deemed to have the required industry knowledge.
However, in comparison to other solutions which made the leading domestic
as well as foreign solutions, most of its implementations have been done in
smaller institutions with a limited number of branches.