Khushhali BankCredit Management System (CMS)

The Client

Founded in the year 2000, Khushhali Bank (KB) Limited was a part of the Government of Pakistan’s Poverty Reduction Strategy and its Microfinance Sector Development Program (MSDP). MSDP was developed with the facilitation of Asian Development Bank (ADB). With its headquarters based in Islamabad, Khushhali Bank Limited operates under the supervision of the State Bank of Pakistan (SBP), many central (commercial) banks are its shareholders. The mandate of Khushhali bank remains to retail microfinance services and to act as a catalyst in stabilizing the country’s newly formed microfinance sector.

The Challenge

The project started in late 2001 when newly established Khushhali bank approached Makabu to become their technology partner due to the limitations in the current system which happened to be a desktop based Credit Management System (CMS) developed by a renowned local vendor.

When our team started a preliminary requirements session, we realized that the system was built with obsolete technologies and it could not fulfill their futuristic needs of the Bank. This was the time when KB was rapidly growing, they were extending their branch network and increasing customers by offering new products and services. To cope up their day to day business requirements through a better technology solution while maintaining huge financial data (requirement from SBP) was a big challenge.

The Solution

Makabu suggested twofold approach, in order to effectively run their day to day business, we started maintaining their existing system in terms of error removal, mandatory functional enhancements and business analytics and reporting. In parallel we started developing a web based solution while keeping the existing data intact.

All complex business procedures were either ported or developed in new technology with robust performance. The monthly reconciliation activity that initially took days for completion was reduced to hours in the new system.

The application provides a complete list of functionalities required to run a micro finance bank. It handles processes like Credit Disbursement, Recovery, Performance Management, Insurance, Reconciliation, Reporting and Business Analytics. It is a dynamic and flexible application where user can define new loan types with ease and flexibility. Some basic loan types are available by default like Agricultural, Livestock, Working Capital, New Venture, Asset Loans etc.

In a very short time, the new application was completely rolled out across branches and started serving approximately one and a half million borrowers across the country.

Makabu considers this project a great success and as a feather in our cap. It fulfills our desire to participate in the SME sector.

Business Benefits

• A centralized CMS connecting all branches
• Completely secured web based solution
• Role based security
• Flexibility to design Loan types on the fly
• Generate complete installment plans on loan types
• Automatic Cheque printing
• Automated Recovery module with Reconciliation
• Month end processing for P&L assessments
• Utility for eCIB (Electronic Credit Information Bureau)
• Controlled Rectification Facility
• Logging and Monitoring
• Extensive Reporting covering:
• HQ/Branch/Group
• Borrower Ledger
• Automatic Payment Schedule
• Receivables
• Monthly Progress Report
• Loan Payment
• Overdue Report
• Disbursement Report
• Repeat Loans Report
• Credit Beneficiary Borrowers Report