24th September 2013, Addis Ababa, Ethiopia Microfinance Seminar 24th September 2013, Addis Ababa, Ethiopia

Agenda Introduction ITSS Microfinance IRFIN Solution Demo Question & Answers

Company Overview Identity Revenue (mCH) References ITSS was created in 2001. Headquarters in Geneva. Branches worldwide: Expertise: T24™: 11 years IT field: 30 years Banking field: 40 years More than 150 consultants fully dedicated to T24TM Our strengths: Strong banking and IT expertise: T24™ High-level of functional/technical expertise Quality charter and respect of clients Partnerships with blue-chip companies: Business Objects References « Think global, to offer the most advanced and complex services to our customers wherever they are – act local, to remain close to our customers with tailor-made services . » Patrick Jaccoud, CEO

Africa

About IRFIN IRFin provides complete Micro Financial business solution that provides end to end solution in a single platform. It supports regulatory compliance and provides flexibility for the financial products with efficient systems. IRFin is an integrated, menu driven & user friendly system with rich functionality. It is flexible and easy to operate. Document and image management for the accounts are the distinctive features of IRFin. IRFin supports regulatory compliance and integration with other interfaces. It supports multi currency & multi branch system.

Configuration Configurations menu in IRFin includes setting up of parameters for the system as a whole, Customer related, Accounts related – Internal as well as Customer, Loans, Deposits, User profile, Exchange rate, Holiday maintenance, internal communication, etc. Menu driven configurations are easy to operate and are user friendly like the one shown below for configuring company and branch details. Likewise list of currencies, countries, customer class, etc. to be configured for usage at different areas in the system.

About IRFIN Account Groups also determines pricing for the customers and their accounts. Debit Interest, Credit Interest and Capitalization frequency can be given per one account group. To enable pricing feature in IRFin, individual Account Groups have to be created based on the categories of the customer groups and then attach it while creating the account.

Customer configuration IRFin enables the financial institution to hold exhaustive information, documents and image of the customers so that KYC (Know Your Customer) guidelines can be retrieved easily. Customer information such as class, industry, segment, status, etc. are stored in Customer class which are retrieved based on individual customer profile

Customer configuration Internal Accounts such as suspense accounts, control accounts, charge / commission accounts, etc. can be opened under ACCOUNTS – INTERNAL menu. Internal account creation is simple and will not be time consuming also.

Customer configuration Financial Institutions can set a list of documents as mandatory for all accounts. It can be set in Documents menu, where the financial institutions can list all the eligible documents they can receive from the customers and also set mandatory flag for the document that is essential.

Customer configuration Exchange rate updates can be entered in “Update Exchange Rates” date-wise and currency-wise. Employees menu is required to create user id for each employee by providing such as Employee ID, Name, Employee position, Department, etc.

Customer configuration Account creation for customers requires information of the Customer (ID), currency for the account, account category and the group, which will decide the pricing for the customer. While creating Account for a customer, user can set preference whether pass book & cheque book are eligible for this account Details regarding Debit & Credit Interest rate, minimum balance, capitalization set up, etc. can be set at the Account creation level. Debit & Credit Interest & Capitalization details will get defaulted based on Account group, hence can be used for pricing for varied customer profiles.

Teller configuration Teller configurations involves mapping employee id with teller position (say Chief Teller) with the branch assigned. Teller transaction and other transaction IDs control to be set in “Application Control”, which also contains the count of characters for each transaction ID.

Teller Operations – Transactions configuration Teller Operations menu enables the users to deposit and withdraw cash in base currency and foreign currency. Charges can be attached to teller cash transactions and sharing of charges between branches can also be done for inter branch transactions

Teller Operations - Queries Queries / reports available in Teller operations include details of transactions, last transactions, balance enquiry, statement of accounts, details of interest accruals, teller operations details, etc.

Back Office Transactions IRfin’s Back Office Transactions menu includes cheque book maintenance, cheque clearing, funds transfer and remittance. Cheque book maintenance includes cheque register to enter issuance of cheques to customer accounts. Cheque Stop Payment Request can be used to note the stop payment instructions of the customers for any cheque series that is entered in cheque register.

Back Office Transactions Cheque deposits and clearance are handled to enter outward clearing and inward clearing. Charges can be activated for the cheque deposit or clearance. Funds transfer includes account transfer of internal accounts and also funds transfer between accounts in base and foreign currency.

Back Office Transactions Inward and outward remittance (transfer from and to outside the system of the financial institution) is possible through Back Office Transactions both in local and foreign currency. Beneficiary details are mandatorily to be entered for inward & outward remittances as the funds are coming in from other banking / financial system. Charges can also be added for the inward / outward remittance.

Loan Configurations Loan configurations can be done in two simple steps : 1) Creation of “Loan Guidelines” – overall guidelines for all loans 2) Creation of “Loan Products” – required for product variation Loan Guidelines is the parameter file that : Fixes the processing fee & preclosure fee codes Creates boundary for minimum and maximum interest rate, loan amount and term. Stipulates the Grace period, penalty rate and source balance for penalty interest Evaluates whether auto retry of payment of dues is allowed or not, if allowed, the number of days the system can retry. Decides the hierarchy of settlement (say Interest first, Penalty second & principal last) Evaluates whether partial payment is allowed or not when settlement account do not have enough funds to settle the dues of the loan.

Loan Configurations Loan Products is the virtual creation of a loan product assigned with category and thereby the financial institution can : Fix boundary for interest rate, loan amount and term range within the provision given in Loan Guidelines (say if the Loan Guidelines allows interest rate from 1% to 20%, user can create a product with range as 4% to 6% since it is falling under permissible range) Documents required for the loan product Charges for individual loan product Loan Products is the parameter or regulator for the loans created under each such loan product

Loan Configurations Loan creation is simple in IRfin as the set up in Loan Product will be retrieved based on the Product given in Loan Document (creation). Loan contract type can either be Annuity, Bullet or manual configuration allowed to facilitate user preferences. Interest rate, pre closure & processing fee will be defaulted from the Loan Product configured values, which can be modified while creating the loan. Interest basis consists of 5 different types such as 360/360, 366/360, 360/366. 366/366, etc., based on which interest calculation will be commuted. Documents pertaining to the loan can be stored in the same loan page under Documents tab. Charges can also be configured (other than processing and preclosure fee) in Charges tab. Pay to A/c, Repay A/c (Principal) & Repay A/c (Interest) fields are to be filled in with the details of settlement accounts for liquidation of the loan, repayment towards principal due and interest due. Loan document page also contains the next due of payment and the overdue amount payable for the loan.

Loan Configurations Manual contract type tab can be used to set schedule instructions as per the preferences of the user. On clicking Generate Schedule, user can view the schedule projection.

Exhaustive overdue details can be seen in “Loan Overdue Details” menu. It displays all the schedules that have been overdrawn and also shows the payment details.

Loan Configurations Revision (amendment) of loan is possible for Principal Adjustment or other revision. System will hold all the loan records from the date of creation till the last revision as it can be used for audit purpose to track the changes made to any loan.

Deposit Products Deposit Products menu creates the deposit products assigned with category and thereby the financial institution can : Stipulate the deposit amount & term range with its applicable interest Preclosure fee for the deposit product

Deposit Products Deposits can either be fixed deposit or recurring deposit (target savings) Deposit funding can either be by way of cash, account transfer, cheque. Settlement instructions can be set to credit the interest or principal pay out. Interest credit can either be paid out or capitalised. Rollover of deposit can be done for principal or interest or both.

Deposit Products Deposits can be preclosed in simple terms in IRfin. Deposits revision can be used to change interest or term.

Demo