MFI Financial Systems Overview, Manila, Philippines
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Transcript of MFI Financial Systems Overview, Manila, Philippines
![Page 1: MFI Financial Systems Overview, Manila, Philippines](https://reader033.fdocuments.net/reader033/viewer/2022052903/55777dead8b42a56728b522d/html5/thumbnails/1.jpg)
Computerized MIS Systems for Microfinance
Regional Workshop, East Asia and the Pacific
Manila, PhilippinesShirley A. Lunde [email protected]
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An Information SYSTEM for MFIs
Loan Portfolio
Accounts Payable
Report Writers
andFinancial Analysis
Tools
Security and System Administration
Savings
General Ledger / Financial Stmnts / Banking
Operating System and Development Language
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The Blind Men and the Elephant
“ It was six men of
Indostan
To learning much
inclined
Who went to see the
Elephant
(Though all of them
were blind)
That each by
observation
Might satisfy his
mind. ”
MIS System
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One, approaching the tusk, cried. . .
“ To me
‘tis
mighty
clear
This
wonder
of an
Elephant
Is very
like
a spear!
”
General Ledger
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Another seized upon the tail. . .
Loan Portfolio
“ I see
the
Elephan
t
Is very
like
a rope!
”
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Yet another felt about the knee. . .
Savings “ ‘Tis clear
enough
the Elephant
Is very like a
tree! ”
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“ And so these men of Indostan
Disputed loud and long. . .
Though each was partly in the
right,
And all were in the wrong! ”
The Moral of the Story:You can’t draw accurate conclusions based on limited information. Here, each man’s conclusion was correct, based on the information available. Yet his understanding of the whole was very wrong.
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The Solution: IntegrationAll elements of the system
work together; communicate with each
other.
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Accounting Applications / GL and AP
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Accounting Applications [GL, AP]Optimal Chart of
Accounts Flexible, allows for growth and
multi-sector analysis Promotes financial analysisTransactions: history, balances,
audit trail Flexible financial statement generatorCentralized bank reconciliation facilityForeign currency processing
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Loan Portfolio
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Loan Portfolio Application
Automate loan processing cycle
Enter and validate / Approve / Disburse / Cancel / Pay / Adjust or Reschedule / Write Off / Pay OffRisk and performance
analysis Portfolio reporting and calculation of
indicators
Monitor on-lending and Internal Account / Group Fund activity
Credit Product performance analysisIntegrated socioeconomic impact database
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Savings
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Savings ApplicationSavings transactions
Forced Savings, with integration from Loan Portfolio
Voluntary Savings Savings-based Income /
Investments Teller OperationsSavings product
analysis
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Possible Levels of Integration
Shared master files
Common Chart of Accounts file
Manual GL entries based on summary reports from subsidiary applications
Transaction-level integration
Transactions processed in one application update data throughout the system
Master files are shared, where appropriate
No integration
Most
Least
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Benefits of Integrated Software
Eliminate redundant data entry, minimizing workload to:
Speed delivery of services Enhance capacity and efficiency, and
facilitate growth
Ensure data integirity among applications and enhance the quality of management information
Minimize training with a common user interfaceShare security profiles and system administration functions
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General System Requirements
Lifecycle costs Software Installation and training Modifications /
Enhancements / Support
Usability / User productivityFeature set (cost/benefit)
Requirements matrix, with weighting by importance
Expectations: 90% not 100%