Emerging countries have a wealth of creativity and entrepreneurial spirit, but obtaining funding takes a lot of work. Microfinance can be extremely beneficial in this situation.
Microfinance institutions (MFIs) play a critical role in promoting financial inclusion and empowering impoverished individuals and businesses. Adopting high-quality Microfinance software can help these organizations achieve their goals more efficiently. These institutions can use the software to reach more individuals and contribute to financial inclusion goals.
In this blog, we will look at the top microfinance software available for Kenyan microfinance companies.
Advantages of Microfinance Software for Companies
In the modern world of swift changes, handling loans can pose a challenging mission for lenders. Microfinance software has gained popularity due to the surge of digital lending and a shift towards more customer-focused solutions. Here are a few benefits of microfinance software.
1. Efficiency Enhancement
By automating loan origination, underwriting, and portfolio management, microfinance operations can see a significant boost in efficiency. This automation reduces manual tasks, eradicates errors, and allows loan officers to concentrate on activities that add more value.
2. Improved Risk Management
Microfinance software equips managers with tools to monitor loan performance and credit risks. This capability helps them detect and tackle risks proactively to prevent them from evolving into major issues. Moreover, it aids in making better decisions related to loan disbursement and portfolio management.
3. Heightened Customer Satisfaction
These solutions facilitate quick and easy access to financial services for customers, resulting in enhanced satisfaction levels. This, in turn, can foster higher loyalty rates and better customer retention.
4. Enhanced Compliance
Microfinance software assists in ensuring compliance with both local and international regulations for microfinance institutions (MFIs). By providing tools for monitoring and reporting on compliance-related activities, it minimizes the chances of facing penalties and fines.
5. Better Financial Reporting
Integrated with accounting and financial management systems, the software furnishes precise and current financial data. This data empowers managers to make well-informed decisions regarding portfolio management, resource allocation, and strategies for growth.
Top Software For Kenyan Microfinance Companies
For Kenyan microfinance companies seeking top-notch software solutions, below are your recommended top choices.
#1. Jisort
Jisort’s integrated Cloud Banking Solution can independently handle all of a microfinance institution’s functions, from loan applications to distribution.
The modules efficiently manage savings accounts, financial accounting and reporting, shares/deposits, and more.
It delivers the quality needed for managing member records, tracking member perks, and navigating an organization’s information.
Why you should choose Jisort as your software solution
– In the microfinance sector, Jisort plays a crucial role in facilitating growth through its provision of technology for KYC, credit scoring, and quicker lending decision-making.
– Providing the advantages of convenience, scalability, and cost-effectiveness, Jisort offers a cloud-based SaaS model.
– Using technology, microfinance institutions can evaluate credit risks and collect payments through various channels.
– Thanks to Jisort’s accounting and financial reporting technology, MFIs can operate smoothly even without the need for accountants.
– Through the mobile banking feature, customers can manage their accounts, apply for loans, and pay directly from their mobile devices.
– The user-based Pricing model offers a pay-as-you-go structure that aligns costs with usage, making it an appealing option for expanding MFIs.
– Jisort’s CRM module facilitates the engagement of new leads and the nurturing of customer relationships, enhancing overall customer satisfaction.
– These represent just a few of the popular features that Jisort’s microfinance software provides.
#2. Mambu
Mambu stands out as a leading choice. This cloud-based platform offers a range of features, including loan origination, portfolio management, and accounting functionalities. What sets Mambu apart is its high level of adaptability, as it can be customized to suit the unique requirements of individual microfinance institutions. Globally, Mambu has been embraced by over 500 microfinance entities.
With Mambu, financial institutions of any size can elevate their banking services by leveraging a cutting-edge software-as-a-service cloud model. This agile, flexible, and transparent approach provided by Mambu simplifies the traditionally intricate nature of core banking software, all while maintaining a cost-effective advantage. Mambu enables hassle-free and economical delivery of vital banking services like loans and deposits.
Why opt for Mambu as your software solution?
– Seamlessly integrate plug-in modules for smooth and automated client interactions.
– Customize and incorporate functionalities without the need for extensive coding.
– Embrace the cloud’s benefits over traditional on-premises solutions.
– Stay adaptable and prepared for changes by constantly enhancing your capabilities.
– Highly modular: A versatile core banking system that emphasizes extreme adaptability.
– API-First: Strategically designed for effortless integration with various tools and services.
#3. Musoni
They are a cloud-based solution for microfinance, which stands out for its easy-to-use interface and strong functionality. It caters to key microfinance tasks like managing loans, handling clients, and processing payments. In addition, Musoni provides mobile features, improving outreach to remote clients effectively.
Reasons to choose this microfinance software:
-Their top priority is security—from their hosting infrastructure to individual access permissions. Collaborating with AWS guarantees data encryption and shields data with cutting-edge antivirus programs, hardware firewalls, and physical security precautions.
Daily backups are created automatically and stored in different locations.
-Say goodbye to substantial upfront investments in hardware and the ongoing expenses of hardware maintenance. Musoni handles all hosting and system upkeep, freeing up resources and time for enhancing your business operations.
-With cloud technology, you can instantly access data and reports for your entire organization in real-time.
-Unlike traditional systems with lengthy waits and high expenses for upgrades, cloud hosting allows us to continuously enhance the platform, rolling out new features to keep you abreast of the latest technology advancements.
#4. Loan Performer
This is a popular microfinance software solution utilized extensively in Kenya by small to mid-sized microfinance institutions, Village banks, and SACCOs. It offers customization options to meet the specific needs of microfinance companies operating within the Kenyan market.
Key Features of the Software:
– Supports standalone and multi-user environments on various network configurations such as peer-to-peer, file-server, client-server, LAN, or WAN.
– VAT-enabled functionality within Loan Performer.
– Facilitates printing of receipts for deposits, disbursements, repayments, etc. Users can assign a default printer and create distinct transaction receipt formats. Additionally, receipts can be saved as files and tracked per user.
– Reports generated by the software feature the institution’s logo, branch name, user details, and printing date.
– Customizable reporting capabilities to align with the microfinance institution’s requirements.
– Over 200 pre-built standard reports included in Loan Performer, accessible with diverse criteria. All reports can be exported in XLS (Excel), DBF (Dbase), PDF, HTML, and XML formats.
– Incorporates FoxFix database protection for data security. The database undergoes validation during startup to identify and resolve any potential errors.
– Users have the flexibility to fine-tune the software settings and integrate custom modules into the menu structure.
#5. Craft Silicon
Craft Silicon, a software house based in Kenya, takes pride in delivering software solutions for Core Banking, Micro Finance, Switching, and Electronic Payments. They cater to over 200 financial institutions across four continents and more than 30 countries. Their software offerings support multiple languages including English, French, and Spanish. With international offices in Bangalore, India, they ensure client satisfaction in the Asia APAC region.
Top Reasons to Choose Craft Silicon Software:
– Empower your loan processing with Glow, a mobile-based solution that accelerates loan processing time for efficient outcomes.
– Seamlessly integrate with core banking systems to facilitate savings account opening for microfinance clients.
– Enhance cash management with True Cell, a mobile-based collection system offering real-time monitoring for improved efficiency.
– Enjoy smooth operations with the provision of loan origination systems for Group and Individual Loans.
– Achieve seamless integration with CBS, financial ERP, and various other banking systems to streamline your processes.
Key Characteristics of Microfinance Software
When considering the array of options available for microfinance software, it is essential to take into account the following crucial features of microfinance software that will assist in selecting the most suitable one for your needs.
1). Loan Origination and Underwriting
A fundamental aspect of microfinance software revolves around streamlining the processes of loan origination and underwriting. This involves collecting customer information, conducting credit evaluations, and determining loan eligibility. The software should be equipped to automatically generate loan agreements and disburse funds while also offering real-time updates to both borrowers and loan officers.
2). Portfolio Management
Effectively managing a microfinance portfolio demands a profound comprehension of loan performance and associated risks. The microfinance software demonstration should include features for monitoring loan repayment rates, identifying overdue loans, and assessing credit risk. Additionally, it should provide robust reporting functionalities to help managers evaluate the portfolio’s overall status and pinpoint areas for enhancement.
3). Savings and Deposits
In addition to lending services, many microfinance institutions extend savings and deposit facilities to their clientele. The microfinance software should comprise tools for administering customer deposits, computing interest rates, and generating reports on savings activity.
4). Accounting and Financial Management
For accurate and current financial insights, microfinance software must seamlessly integrate with accounting and financial management systems. It should have the capacity to produce financial statements, monitor expenses, and reconcile bank transactions effectively.
5). Mobile and Online Banking
Given the increasing prevalence of mobile and internet-based financial interactions, microfinance software should offer functionalities for mobile and online banking. This encompasses enabling customers to manage their accounts, conduct transactions, and apply for loans conveniently via digital channels.
Conclusion
With the increasing demand for microfinance software, the microfinance industry has found a valuable instrument in aiding lenders. This software offers a range of advantages, including efficiency Enhancement, improved Risk Management, heightened Customer Satisfaction, enhanced Compliance, and better Financial Reporting.
By integrating microfinance software into their operations, micro-lenders can enhance their efficiency, extend their services to marginalized communities, and advance financial inclusion. The future appears promising for the microfinance industry in Kenya as it continues to strive towards empowering individuals and fostering a brighter tomorrow for all.
