Automation of SACCOs - FSD Kenya

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64 • AUTOMATION OF SACCOS: ASSESSMENT OF POTENTIAL SOLUTIONS Credit, collateral, and collection The system provides basic credit scoring and offers an optional comprehensive credit scoring module that builds on “the 5Cs of credit”: character, capital, capacity to pay, conditions, and collateral. The feature providing automatic provisions for delinquent loans has been removed. But the vendor said it can be reintroduced without major effort. The system can attach collateral to loans but valuation and depreciation needs to be done outside the system or in an additional collateral module. If the SACCO does not have the collateral module, the collateral associated with the loan is not considered during the appraisal The credit scoring module is not included in the core offering. FinSacco offers reporting on delinquency. If further functionality is required the SACCO has to acquire the debt management module. Collection tasks are not supported by the system. Accounting and Strengths Weaknesses / For further finance investigation General accounting The system provides a security feature by not allowing cash transactions to be posted until reconciled. The system can operate several CoA formats in parallel and the CoA is fully customisable. A custom CoA can be imported from Excel and then populated with raw data accordingly. Products and transactions are assigned to sub-ledgers to facilitate automated posting and reporting. Every teller has their own GL account to facilitate reconciliation. The system offers a report with all posted transactions that facilitates audit and reconciliation. Specific control accounts are used for key topics like arrears. Fixed assets The core application does not offer an asset registry. The user needs to use Excel or so and then post journal entries manually. Planning It is possible to generate a cash flow forecast report based on current accounts receivable and payable. Treasury and cash management Comprehensive fixed asset, inventory, and fleet management modules are only provided through additional modules. The core FinSacco application can only track investments as any other accounts receivable.
Risk management The system provides default reports to monitor risk. AUTOMATION OF SACCOS: ASSESSMENT OF POTENTIAL SOLUTIONS • 65 The system has no dedicated risk management features in addition to reports. reporting Strengths Weaknesses / For further investigation Available reports The system is by default delivered with a mapping of the CoA to PEARLS which enables the export of data to the PEARLS system for report generation. Generation of reports Unlimited reports will be provided for clients on annual maintenance contract, if required. Usability GUI Drop-down menus are logically arranged into customer data, journal entries, cash transactions FOSA, non-cash transactions FOSA, BOSA, GL, reports, and system administration. The system offers a customisable side bar for quick access. The system guides the user through processes with the help of “Next” buttons. Workflow Processes are supported by a workflow-like feature: tasks are taken to the next stage automatically, e.g. loan process. Tasks can be routed back to the previous stage. Alerts There is a task management module in which users can define events to trigger alerts. Data entry validation System maintenance Configuration The system is flexible with regard to product definition, rule definition (e.g. authorisation requirements), access rights, screen customisation (e.g. side bar), etc. Data A clear concept for data modelling is used, e.g. account number L01-001\000275-01 (product code\branch code\member no\serial number for concurrent products). Security Rights can be differentiated on module, sub-module, and field level, as well as into read and write access. Authorisation processes are supported, including online notification. The audit trail can be followed on transaction level or per user. The authorisation module provides a feature to view modifications field by field. Backup and recovery Multi-branch operations The system has been installed across multi-branches of UTS and Mau SACCO.The system has been optimised to enable inter-branch communication via low GPRS bandwidth, e.g. only incremental data is submitted to lower data volume to be transmitted. There are three options for connecting multiple branches: i) centralised database using lease line, issues are cost and availability, ii) decentralised databases per branch with regular updates (e.g. every 5 min), or iii) stand-alone operation with scheduled data synchronisation (e.g. every month). Issues observed include timeouts, delay of generators in case of power cuts, and, low priority of data compared to voice in GPRS network. Support and maintenance The procedures for implementation and support seem to be proficient. A team of 12 people is dedicated to maintenance and development of FinSacco. The same team also handles support. Kenyan presence About 90+ staff in Nairobi office. Kenyan SACCO experience At least 8 live sites in Kenyan SACCOs. Owners of the subsequent task are not notified automatically. Additional module needs to be acquired.
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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
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A manual of the solution needed to
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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 71: Customer data management All detail
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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