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Success Stories
Retail Management Solution
Microfinance Management Solution
Integrated
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Success
Story: BRAC - the largest non-government development organization in the
world.
Solution: Microfinance
ICT Solution.
BRAC
Area Offices Automated
Recently 1,131 BRAC Area Offices have been
automated using Southtech's Microfinance ICT Solutions. These achievements enable BRAC to efficiently manage, monitor and track all savings
and credit activities of Microfinance Area Offices and allow consolidation
of all information to its Head Office for effective management. The first
phase started in November 1999 with 26 branches.
How BRAC was automated
BRAC is the largest non-government development
organization in the world. A pioneer in micro finance, it has the largest
portfolio of micro credit and savings in Bangladesh serving over 3.5 million
members at any time throughout the country.
Back in November 1997, BRAC asked Southtech to carry out an analysis of its
credit disbursement and collection processes with a view to upgrade a
FoxPro2.6 based credit management information system (MIS) at its head
office. Data volumes from its 246 branches were so huge and data errors so
numerous that even 300 data entry operators at its Head Office could not
complete the job by the deadlines set by management. MIS reports were
therefore not very useful by the time they were generated.
The study resulted in the development by Southtech of a new credit and
savings management system based on Microsoft SQL Server at BRAC’s Head
Office called Credit and Savings Management System (CSMS). The study also
required the re-engineering of several processes that reduced costs
substantially, improved controls and accountability and allowed BRAC to
expand its branch network. Data entry staffs were reduced to only 50
operators by May 1999 while a novel data entry mechanism helped reduce data
entry by almost 70%. MIS reports were now generated by the 7th of each month
for data up to the previous month. The first phase of the project ended in
May 1999.
The second phase of the project was started soon after, with the objective
of taking computers to all the branches thus shifting the emphasis of
automation from just an MIS orientation to an operational system that would
empower branch managers and other personnel working at the field level. A
further detailed study was carried out and in almost six months a branch
automation software was developed that encompassed automated accounting for
all their credit and savings programs and normal accounting of their other
non-credit programs. The branch automation software (BASS) was piloted in 26
branches initially by November 1999 and once proven successful, a
comprehensive deployment program was arranged for 650 branches over a period
of three years. In the mean time a few major developments took place with
data consolidation: while earlier data from the branches were being
consolidated on CSMS (HO) for MIS report generation, Southtech started to
work on data warehousing concepts and by January 2002 developed and
installed another software that used advanced warehousing concepts for
analytical purposes for head office. This new software allowed auditors to
home in on operational anomalies and deviations making extremely effective
utilization of their time and resource. Furthermore, senior management could
now analyze data in very significantly different perspectives. By the time
650 branches were automated by April 2002, BRAC’s branch network had grown
to over 1,000. Southtech continued to automate the rest of the branches and
by November 2003, it had 1,131 branches under the automation program.
Southtech's Microfinance ICT Solution not only
fulfilled BRAC's requirements but it conforms to all requirements
recommended by The Consultative Group to Assist the Poor (CGAP). As a
result, this solution is portable to fit any Microfinance institution.
Southtech implemented the branch version of Microfinance ICT Solution in
both Shishu Shasthya Foundation (SSF) and Shishu Unnayan Sangstha (SUS).
Shishu Shasthya Foundation (SSF), Shishu Unnayan Sangstha
(SUS) are two valued clients of the Southtech's Microfinance ICT solutions.
SSF is operating in Satkhira district with 4,000 borrowers and with an
outstanding figure of 9 Million Taka and SUS works with 2,000 borrowers in
Dohar having a loan outstanding figure of 10 Million Taka, which helping to
alleviate poverty for rural community. The business growth of both SSF and
SUS have been immensely increased after Southtech's Microfinance ICT
solutions have been implemented in their branches. Back To Home Back To Previous |
