Automation of SACCOs - FSD Kenya

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60 • AUTOMATION OF SACCOS: ASSESSMENT OF POTENTIAL SOLUTIONS Kenyan SACCO experience 12 implementations in Kenyan SACCOs. 2. EASYSACCo (AMTECH) Numerous implementations in SACCOs and MFIs in the region (about 60% of 300 installations in Africa). FoSA Strengths Weaknesses / For further investigation Teller operations The system can track cash movements from treasury to teller, from teller to teller, and from teller to treasury. The system can apply upper limits to teller cash holdings. The system can apply restrictions to transactions requiring authorisation by managers to release them The system enables an overdraft facility with inbuilt restrictions to assure authorisation prior to approval. FOSA products (Configuration and processing) The system allows for pre-payments and partial payments and can make the necessary recalculations. It needs to be confirmed how flexible the system is with regard to applying relevant charges to the customer (fees, interest, principal, etc). It needs to be confirmed what is required to connect the solution to an external network of ATMs, POS devices, and mobile phones. The system provides limited options to configure current accounts. Customer data management The system’s ability to handle cheques is limited as clearance is only possible in bulk. The search functionality demonstrated severe deficiencies. The system uses one central database but FOSA and BOSA rely on different tables for customer data. This can result in data inconsistencies or the fact that different users access different data. BoSA BOSA products (configuration) Share and dividend processing Loan application processing The appraisal screen is uniform for all loan types Officers can approve applications remotely. The loan issuing process can only be completed by two different users to ensure the four-eyes principle. The loan report shows the history for the whole process including system users that processed the application The system provides flexible loan schemes defined per loan product considering various parameters. The default appraisal screens only support verification of the key data such as guarantors, and applied verses approved loan value. For further analysis the user needs to produce a report but then loses the value of working in a system verses on paper as it is no longer dynamic. The loan appraisal process cannot easily be configured. Customer data management The database structure might prevent access to identical customer data for different users. Credit, collateral, and collection The system provides a loan aging and portfolio analysis module with default reports. The system automatically makes provisions as per the loan aging module. The system enables the SACCO to deduct nonrecoverable receivables from guarantors’ shares. The system has no dedicated credit scoring module.
AUTOMATION OF SACCOS: ASSESSMENT OF POTENTIAL SOLUTIONS • 61 Accounting and finance Strengths Weaknesses / For further investigation General accounting The system has inbuilt payroll functionality. The user needs to decide if to debit or to credit when posting a transaction. Accuracy is dependent on the user’s skill. The system allegedly has sub-ledgers but these could not be demonstrated. Fixed assets The system has a fixed asset module that provides an asset registry and calculates depreciation. Planning Treasury and cash management Risk management reporting Available reports Generation of reports usability The system offers a budget deviation analysis report. Data entry in the budget module is highly cumbersome. Each value has to be entered manually for each account or distributed to each month by dividing the annual value by 12. This is unlikely to be satisfactory given significant seasonal characteristics of the SACCO industry. GUI Screens are not consistent, similar functions have different names (“edit” verses “+” button). The flow of screens is not logical, e.g. FOSA being an item in the GL menu, interest parameter setting being distributed over various screens, etc. Confusing and inconsistent wording e.g. product code is the same as account code. Labelling needs to be improved as database field names or used or some abbreviations which are unclear, e.g. IOUCHQS/L. Also the unit for some fields is unclear. Drop-down boxes contain only codes instead of the actual value. Most error messages are unclear. Some mention the technical error, some messages are not precise enough, e.g. “account has some issues”. Sometimes error messages pop up that are unrelated to the current transaction. Regular run-time errors force user to re-open a module. Workflow No workflow component Alerts It is possible to set up reminders that will send an e-mail or display a pop-up window when the defined event takes place. Data entry validation The system does not guide the user sufficiently with regard to correct manual entries. The system allows choosing impossible combinations such as withdrawal and credit, or savings account in the financial data accounting module. Not all fields are populated automatically. This enhances the risk for incorrect data entry.
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AutomAtion oF SACCoS ASSeSSment oF
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table of Contents Tables and Figure
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list of Abbreviations ASP Applicati
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exeCutive SummAry Financial Sector
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Chapter 1 introDuCtion 1.1 ConTEXT
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Chapter 2 projeCt methoDology 2.1 r
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The purpose of the visits was to sp
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The fact that the individual lists
Page 17 and 18: A manual of the solution needed to
Page 19 and 20: studies, which have been focused on
Page 21 and 22: for management information purposes
Page 23 and 24: yield on member share capital. The
Page 25 and 26: Thirdly the project team as observe
Page 27 and 28: coordinating their acquisition and
Page 29 and 30: Level 1 Level 2 Description AUTOMAT
Page 31 and 32: Level 1 Level 2 Description AUTOMAT
Page 33 and 34: Chapter 5 AutomAtion Solution ASSeS
Page 35 and 36: they would most probably have been
Page 37 and 38: Accounting and finance AUTOMATION O
Page 39 and 40: fees according to the size of their
Page 41 and 42: social factors. The first would be
Page 43 and 44: the system implementation there wil
Page 45 and 46: In order to evaluate the identified
Page 47 and 48: the functionality Orbit offers by d
Page 49 and 50: ecommendation: To conclude Amtech
Page 51 and 52: 5. Orbit (Neptune) Fulfilment of re
Page 53 and 54: Plan the project This phase is esse
Page 55 and 56: 3. Managing stakeholder participati
Page 57 and 58: option is the acquisition of SACCO-
Page 59 and 60: I) Increase automation AUTOMATION O
Page 61 and 62: III) Governance AUTOMATION OF SACCO
Page 63 and 64: AUTOMATION OF SACCOS: ASSESSMENT OF
Page 67: AUTOMATION OF SACCOS: ASSESSMENT OF
Page 71 and 72: Customer data management All detail
Page 73 and 74: Risk management The system provides
Page 77 and 78: 5. orBIT (nEPTunE) AUTOMATION OF SA
Page 81 and 82: 6. T24 MCB (TEMEnoS) AUTOMATION OF
Page 85 and 86: noteS AUTOMATION OF SACCOS: ASSESSM
Page 88: FSD Kenya Financial Sector Deepenin
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Automation of SACCOs - FSD Kenya

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