Social Impact Assessment of Microfinance Programmes - weman

Figure 8.5
Client Attrition Rate
Percentage
30%
25%
20%
15%
10%
5%
0%
26%
21%
9%
9%
2003 2004 2005 2006
Kashf has brought down its drop out rate considerably. For 2006 it is around 9 percent
(Figure 8.5) and Kashf has put in a lot of effort to reduce it. A ‘Win-Back’ initiative was
launched and a new value ‘Delight the Customer’ was added to Kashf’s core values. A
review of services and products was undertaken to assess the changing needs of the
clients. Other efforts made included remarketing the products, flexibility in policies for
good clients, focus on customer care and dealing with clients with optimism.
Furthermore, disbursement time was brought down from 15 days to 3 days for repeat
centres and 7 days for new centres.
Better monitoring polices and weekly tracking of pending centres has also reduced client
delinquency and dropout rates to a considerable extent. The recovery rate has been
maintained at 100 percent, while PAR has also fallen. Moreover, many old clients came
back to Kashf after being dissatisfied by the competition.
8.1.5.8 Operational Systems
The MIS system for the branches has full connectivity with the head office. Kashf calls
the MIS software, Miracle Worker, and it allows efficient processing of the loan
application, tracks clients’ loan cycles and generates effective reports for efficient
decision making and management. The system has modules for Loan and Saving
Management, General Ledger and Security. It is an Oracle based software and
information is sent to the head office daily, where back-ups are maintained on tape drives
and disks. At the branch, the loan officers give in their recovery and savings sheets to the
Computer Operator daily who enters them into the Miracle Worker. Kashf estimates that
due to the Miracle Worker, LOs save 40 percent of their time which they previously spent
on paperwork. Consequently LOs now use that time to build better relations with clients
and their caseload has been increased to 650 clients from 600.
Kashf completed the automation of all of its branches in mid 2006 and now real time data
is available at the Head Office from which data is consolidated and reports by city,
district and the overall region are available for analysis. As yet the financial and HR
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