Greenland
Fedha Limited (GFL), a microfinance institution for small-scale tea
farmers in Kenya, has implemented a new software solution to improve its
efficiency and remain competitive in the market. According to the
institution, it had chosen the Microsoft Dynamics NAV platform.
With
the system in place, GFL revealed that the system had not only
automated its processes, but also enabled it to develop a mobile payment
solution.
GFL
is wholly owned by the Kenya Tea Development Agency (KTDA) Holdings and
provides financial services to the tea sub sector in the country.
According to GFL, the institution is unique in that it offers its loan
recipients the option to apply for and repay their loans using green
leaf as collateral, with specific formulas in place to work out the
interest and repayment rate. The manual system it had in place, prior to
the installation of the new system, was cumbersome to log loans, work
out interest rates, manage inventory and run the business effectively.
This made it challenging to compete with commercial banks and other
microfinance lenders.
“We
realised that to get ahead, we needed to use technology,” says GFL ICT
Manager, Godfrey Waiharo. “We chose Microsoft Dynamics NAV because we
could see Microsoft is trusted, well-known, offers a lot of aftersales
support and most importantly has good relationships with its partners.
This was the fastest implementation that we had ever seen with no down
time at all.”
Most
notably, GFL was able to build a mobile payment solution with the help
of the latest system. “This has changed the way we operate because we
are now able to get money to farmers regardless of whether they have a
bank account or how remote their farms are – by simply paying the money
directly into their mobile phones. It’s also now possible for our
customers to access the system on the go and work out their qualifying
loan amount and repayment installment,” explains Waiharo. The mobile
solution has been such a success that GFL has developed a separate
mobile sales unit.
Kunle
Awosika, Country Manager, Microsoft Kenya says, “A recent study from
the Boston Consulting Group states that SMEs that embrace technology can
increase revenues 15 percentage points faster and create jobs almost
twice as fast. SMEs like GFL are contributing to a growing economy
across the world and especially an economy like Kenya, where their
contribution adds about 40% to the GDP”.
According
to Waiharo, “Thanks to GFL’s implementation of the latest system, the
MFI sales volume has increased and its business processes have become
more streamlined, flexible and efficient. The software’s scalability
also means that GFL can progress with its future plans to build its
versatile mobile banking platform that is can expand beyond the tea
sector.
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