S-U Management Systems Limited (SUMS), an emerging leader in the management of micro-loan "ladder" programmes in SA, has doubled data capture volumes using the SUMS system, a powerful loan management program designed to manage the back office of multiple micro-loan organisations to cater for some 68 000 active borrowers.
Designed and implemented by Microsoft technology and software application developer Business Connexion, the SUMS system is specifically modelled to calculate and manage various loans, loanees and risk exposures using multiple mico-loan products from multiple loan provision partners while retaining transactional history for each business.
In 1999 SUMS, which manages the back office for Land Bank, required a flexible system to manage vast volumes of loan applications from capturing stage through to database collation.
"The book-based payment system we were using for the reconciling of statements from more than 75 000 active borrowers was slow and cumbersome," says Barry Coetzee, MD of SUMS. "The SUMS system enables us to download the information immediately on repayment and reconcile it electronically to the database. Payments can now be made at 2 600 post offices around the country using a barcoded plastic card."
The SUMS system is built on and fully complies with the standard Microsoft back-office (DNA) architecture, which incorporates various database and inter-process design principles allowing for the reduction of LAN/WAN traffic and optimisation of hardware resources. Running on the MS Windows platform for flexibility, reliability and scalability, it also runs various back-office products, such as Microsoft SQL 2000 Server.
"Catering for high-risk loanees from traditionally disadvantaged market segments, the SUMS system is not only modelled on the risk strategies in managing these loan products but also the essential business disciplines in maintaining them," says Grant Healy, Western Cape regional director at Business Connexion.
The system includes strict implementation of set business rules, transactional history, trend analysis, risk profiling and flagging, generation of warning letters and notices of payments for each of the loanees. Once the loanee has been captured into the system, their account is managed without any need for user intervention.
The system allows for all the loans to be administered from a single bank account, reducing the charges associated with the running of multiple bank accounts. Each loanee is issued with a payment card for payment at any post office. A specialised importer module reads the post office file and automatically assigns repayments to loanees.
Automated management of the generation of postal letters such as warnings or confirmations ensures that letters are only sent if the cost of sending the letter is warranted. This allows for the reduction of postal expenses by eliminating unnecessary post, reducing communications expense, and easing administration.
The system incorporates field-level logging, recording all operator changes to transactional histories, loan programmes and partner templates. This facility allows for internal risk management, allowing the administrator to investigate any discrepancies that may have occurred to a loanee`s transactional history, program templates or any other aspects in handling large quantities of transactions.
Partner organisations can be defined within the SUMS system, allowing for one company to administer various ladder loans programs under different names. Internet access can be made available to the various organisations via a Web site. This allows for agents to be placed in rural areas and be able to access the system.
Implementing the SUMS system allows for the reduction of operating costs, since fewer staff members are required to operate the system, freeing their resources and allowing them to engage more readily in other aspects of running the business.
"Our data capture volumes have more than doubled in the past three years. Not only do we manage the back office for 27 branches of Land Bank but also for some 300 agents handling an average of 3 500 new loans a month, amounting to more than 13 000 loans going out monthly. Without the efficiencies the SUMS system has enabled, we would not be coping with these volumes. We have reduced operational costs, increased productivity and increased operational capacity.
"Not only has the system achieved our immediate goals of improved efficiencies but it has positioned us to expand our capacity significantly, enabling us to manage a vast amount of partners and their associated customers with ease," says Coetzee.
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