An Mfi Story

© OCTO Technology 2008

An MF I s toryMic roF ina nc e & Ne w Te c h nolog ie s

S um mit 2008

Pierre Pezziardi ([email protected])Octopus Founder

CEO, OCTO

Images by Bidulz.com

mailto:[email protected]


2005, Om a r, CE O Za g ora MF I - Moroc c o

flexible

secured 1,4 M€ OLB


2006 : g rowth … but

2,4 M€ OLB

1,6 M€ OLB


E rrors

Too bad, these amounts have not

been inputted in the correct cells

We now believe that customer #12 has paid,

whereas he hasn’t.. And customer #13 is now delinquent whereas

he has actually paid !


F ra udsThis loan has been discretely

inserted without following the standard appraisal

process

Money has been disbursed to someone

we don’t know .. How many fake loans have we got now ??


Ope ra ting c os ts inc re a s e

2,4 M€ OLB

1,6 M€ OLB

.. Extra staff to control and

consolidate information


THE s o lution : A MIS !

Excel(2005)

Flexible

Secured & automated

Excel(2006)

MIS(2007)


An 8 month s ma ra thon …

Loan + Grant Requirements analysis RFP Configuration & Migration

SoftwareProposals

1 M€ OLB80 k€ IT

Local ITexpertise

Technical Assistance

http://www.loanperformer.com/English/home.htm


2007 : s till g rowing … but

4,2 M€ OLB

2,8 M€ OLB

1 M€ OLB

1 M€ OLB


MIS doe s n’t s upport our ne w loc a l-c urre nc y produc ts

€ OLB

DH OLB

Never mind, I will manage the Dirham portfolio

aside in Excel

I had to pay my Value Added Reseller (VAR) for an import/export

program

5 k€ Requirements analysis Development, Test & Migration


Ca n’t improve s te e ring : bre a kdown rura l/non rura l

€ OLB

I will ask my Value Added Reseller to

develop this feature

Breakdown by Rural / Non Rural

Autres Amélioration continue des

processus

Changement & Dynamique

d'équipe

Ergo/IHM

MDM

Productivité des dévsSécurité

SOA



Ca n’t improve ope ra tions : bulk colle c tive re pa yme nts

€ OLB

I will ask my Value Added Reseller to

develop this feature



Ca n’t c h a ng e Ac c ounting me th od

VAR says he can’t handle such a big change in the

software : accrual accounting seems very different from cash

accounting

We’ll have to wait for a new release from

the Vendor…


Mid-2008 : S pe c ific de ve lopm e nt is a de a d e nd

€ OLB

DH OLB

New release

Local adaptations make the migration to the next Vendor

version very difficult

And my VAR now proposes a 70k€ shift to a new technical solution …


Los t E de n …

Flexible

Secured & automated

Excel(2005)Excel

(2006)

MIS(2007)

MIS ?

Is it impossible to streamline innovation while being secured &

automated ?


Automated testing

Development

3 weeks

Demand posted in our MIS’ backlog

Demand#233 : Check customer duplicate

When a customer is entered, a dialog …

S tre a mlining Innova tion th roug h a n a da ptive MIS

Listen, there are too many customer duplicates in the system, it should check if a

customer already exists !

Automatic upgrade on the MFI’s side

Flexible

Secured & automated

MIS ?


B e ne fits

MFI empowerment, not alienation Release every month, automated tests ensuring software stability Open Source ensuring transparence & autonomy Auto Update mechanism ensuring fast & secure release updates Education of local teams ensuring technical alignment & quality

Best practices aggregation Your best ideas aimed at maximizing social impact in one simple

& robust product

Bulk repayments

Partner remote offices

Loan Officer roadmap optim

PPI social impact reporting

http://www.octopusnetwork.org/Overview.aspx


Va lue o f IT …

Like 80% of his peers, Omar is unsatisfied (Source CGAP)

Yet, he has spent an average 4% of its revenues in IT+ hidden costs of its best internal staff time

In Western countries, IT costs about 10% of Banks revenues …

Growth, competition and regulation deprecate the IT at high speed

k€ 2005 2006 2007 2008

OLB 1,400 4,000 8,000 13,000

Revenues 280 800 1,600 2,500

IT* (in % of revenues) 0 40 (5%) 65 (4%) >70 (>3%)

* excluding hardware & network


Unre fus a b le o ffe r

Imagine : you manage your computers and network

Now, what would you pay, per year, for an adaptable-guaranteed MIS running on this hardware ?

You can find an Octopus VAR and deal such an unrefusable offer

k€ 2005 2006 2007 2008

OLB 1,400 4,000 8,000 13,000

Revenues 280 800 1,600 2,500

IT (in % of revenues) 0 40 (5%) 65 (4%) 70 (3%)

IT (in % of revenues) 0 16 (2%) 32 (2%) 50 (2%)


Wh a t you s h ould re m e m be r

Don’t think static, think dynamic : things change fast, MIS must change fast

Don’t buy a box or a list of features, build a team able to embrace the everlasting change

MIS decay, the piece of code you write alone is your next year’s nightmare … find VARs who can share their code

Provision more than 2% of your revenues for IT investments & expenses per year


THANK YOU

An Mfi Story

Technology

Transcript of An Mfi Story