Computerization: A Journey Towards Digitalization
Management Information System (MIS) is a unit responsible for providing timely and accurate information to the board and management for decision-making. MIS provides the big picture of the prevailing conditions of the institution. The usefulness of MIS came to the fore when KCCDMFI reached a critical juncture – almost half of its branches were closed due to monitoring problems. Had there been a computerized KCCDMFI MIS unit at that time, such problems should not have happened or should have been minimized.
The experience however, paved the way for the computerization of KCCDMI MIS. It eliminates the tasks of manual recording and monitoring of loan transactions. The level of complexity in monitoring loans and other transactions of the institution has been lowered dramatically.
Prior to computerization, KCCDMFI had practiced a manual system of MIS. With each loan transaction recorded manually. Field credit officers (FCOs) attended center meetings on a daily basis carrying an FCO register 24 inches long, 8 inches wide and ¾ of an inch thick. All center transactions of the FCOs are recorded in the register.
Manual recording is time-consuming and prone to errors especially if you were doing it on a very long register. When errors were committed, the FCOs often had to stay long hours in their respective branches to trace and correct the errors. Only then could they return home.
With the manual MIS, monthly reports took weeks because ample time was needed to manually consolidate data. Sometimes, due to time constraints, the submitted reports were riddled with inaccuracies and therefore not reliable.
KCCDMFI’s subscription with a cloud-based software is the first bold step towards computerization. The software minimizes the errors that are usually committed during data consolidation and report preparation. Reports that previously took weeks or sometimes months to produce, can now be readily available and can be accessed anywhere anytime as long as there is an internet connection.
The computerization of KCCDMFI MIS is an affirmation of one of KCCDMFI’s core values; the value of balance of work and life. With computerization, FCOs have more time for their respective families, and they can home early since recording errors have been minimized and transactions have been automated and computerized.
Furthermore, computerization minimizes the opportunity for fraudulent transactions since data consolidation is done in real time. Besides, embedded in the system is a text messaging service which informs clients through text messages of each transaction made with the FCO or in the office. This service confirms to clients that the repayments were transmitted to, and received in, the office.
INSTAFIN: The First Bold Step To Digitalization
INSTAFIN is a cloud-based software from Oradian which KCCDMFI has subscribed to, for MIS computerization. With INSTAFIN KCCDMFI is able to monitor its operations and access data in real time. INSTAFIN is instrumental in the recent increase of KCCDMFI’s loan portfolio and number of clients. For a long time, KCCDMFI had only one loan product and resisted creating another one because of the complexities of manual recording. With INSTAFIN, KCCDMFI has over 10 different loan products designed to meet the clients’ needs.
The road towards digitalization may be long and full of challenges but with INSTAFIN, KCCDMFI has taken a first bold step forward that concretizes the saying: “a journey of a million miles begins with a single step.”