1

SACCO SYSTEM
BRIEF

By
Tovuti Group Ltd
 2

About us
WHO WE ARE TOVUTI IN BRIEF
Tovuti group is an innovative IT company whose sole purpose is to
simplify business management via software solutions that are easy to
use, easy to deploy and easy on your budget, yet comprehensive
enough to meet and surpass your business needs. Our main aim is to
ensure your business is not held back by the lack of modern Company Founded Work Presence Projects Done Headquarters

technology. In a nutshell, we provide technology that is designed to OCT 2011 4 Countries 25+ Nairobi
work with and for your business. Technology that is simply
indispensable for any retail business seeking to grow its revenue.

Our Value Proposition

OUR MISSION
Is to provide world class retail ICT solutions to business To grow your business revenue while reducing operational costs

with an aim of improving efficiency, growing the business brand, and increasing efficiency.

increasing revenue and hastening the rate of return on investment.

VISION
Our vision is to be the preferred retail ICT solutions provider in east
and central Africa with a presence in all the countries in this region
 3

The Sacco Solution

Summary
Our sacco solution is designed to offer financial inclusion by providing the core
functionality needed to deliver financial services to Saccos, Microfinance and other
financial institutions. The solution can be deployed in any environment: cloud or on-
premise and is extensible enough to support any organizational type. It provides client
data management, loan and savings portfolio management, integrated real time
accounting and social and financial reporting needs to bring wholesome digital financial
services to a financial organization such as a Sacco.

System Overview
Financial institutions deliver their services to customers through a variety of means
today.
Customers can call direct into branches (teller model)
Customers can organize into groups (or centers) and agree to meet up at a location
and time with Finance Institution staff (traditional microfinance).
A Finance Institution might have a public facing information portal that customers
can use for variety of reasons including account management (online banking).
A Finance Institution might be integrated into a ATM/POS/Card services network
that the customer can use.
A Finance Institution might be integrated with a mobile money operator and support
mobile money services for customer (present/future microfinance).
A Finance Institution might use third party agents to sell products/services from
other banks/Institutions.
As illustrated in the diagram, the various stakeholders leverage business apps to
perform specific customer or Finance Institution related actions. The functionality
contained in these business apps can be bundled up and packaged in any way. In the
diagram, several of the apps may be combined into one app or any one of the blocks
representing an app could be further broken up as needed.
 4

How it Works Members & Client Management

Registration and Accounts

The proposed solution allows for creation and
management of Members and Clients of the Sacco.
Some of the details managed includes. :
Clients Personal Information(Name, Date of Birth,
Client Activation Date. etc)
Client's Loan Portfolio (All the loans that particular
client has, including the status of those loans,
Repayment schedules, transactions, etc)
Client's Savings Portfolio
Clients additional details
The documents submitted by the client.
Client/ Member beneficiary details capturing
Client/ Members Share definition.
Assigned Staff .
Clients and members can be registered as
individuals, entities or groups.
 5

How it Works Share and Contributions

For Managers, Admins & IT Personnel
The proposed solution allows allocation of shares to
members. Its also provides the ability to give contributions
Administration Dashboard in the from of member savings. Allocation of share is done
via a share products facility that defines the rules, default
settings, and constraints for the Saccos shares and
dividends. The share product facility also provides definition
for multiple accounts that are, or will be, held by the
financial institution's clients.
The following data is captured as part of a share definition.
Share currency
Share allocation multiples e.g. 100, 200 e.t.c.
Total number of shares to be issued
Share nominal price value
Share capital value
Minimum shares per client
Maximum shares per client
Minimum active period to receive dividends
Share Lock-in period where withdrawals are not allowed
Share market price defined for a specific period
 6

How it Works Loan Management

Overview
Loans are managed via loan accounts. A loan account is an instance of a loan
product. A loan account has a unique account number, a specified interest
rate, and it is owned by one, and only one, client or group.

A loan account can be created for an active client or group based on a loan
product that is active on the submitted date. When a loan account is created,
it inherits the rules and defaults from the loan product. Your financial
institution may allow some of the inherited information to be modified for a
loan account, depending on how the loan product is defined. When a loan has
been repaid in full, regardless of the payment method, its status will be
changed from Active to Closed (obligations met).

The loan account lifecycle is illustrated in the system Loan Account Lifecycle
diagram. Loan account statuses are visually indicated in the system using the
colour scheme illustrated in the Loan Account Lifecycle diagram.

Group Loan Accounts Loan Account Repayment

There are three main types of loan account for groups: a group loan, a joint liability
group (JLG) loan and a Bulk JLG loan for a group.
Group Loan account: This is a single loan account shared by all members of a group.
Members of the group are jointly responsible for repaying the loan.
JLG (Joint Liability Group) loan account: This belongs to an individual who is a
member of a group. The individual has primary responsibility for repaying the loan,
but the group, in effect, guarantees the loan.
Bulk JLG Loan Account: This gives the ability to apply a JLG loan to multiple clients
in a group.
Individual repayment processes allow client, group, and JLG loan account
repayments to be recorded against one loan account at time. These payments
may be made through:
Repayment of cash or similar negotiable payment type
One-time transfer of funds from a Saving account to a Loan account
Standing orders to transfer funds from Saving account to a Loan account
Group repayment processes are available for group and JLG loans. The group
processes leverage the collection sheet, which is a bulk processing
methodology for group and joint liability group loans repayments.
 7

How it Works Loan Guarantees

Loan Guarantees
The proposed solution allows for member to self
guarantee or have other members guarantee their
loans. As part of Loan Guarantor definition, the
following will be captured;
Place Guarantee Funds On-Hold This will lock
the guarantors funds for the duration of the loan
Mandatory Guarantee(%): This is to provide total
% of loan amount as mandatory guarantee. Eg 20
%.
Minimum Guarantee from Own Funds(%) Eg, 10
% of loan amount from Own funds.
Minimum Guarantee from Guarantor Funds(%) Eg,
10 % of loan amount from Guarantor Funds.
One or more guarantors can be added to a loan
account application when it is Pending Approved
or Approved. Guarantors may be, but are not
required to be, clients.

Solution Core Features
Clients, Groups, and Centers
All features related to the creation and
management of these entities and their
movement through a state process flow
(partial application, pending approval,
approved/active, on hold, closed,
canceled).
Uniqueness check for clients as per
government ID
Loan cycle at client level
Support for client photos
Move groups & clients to different
centers and/or branches
Add notes to client, group and center
detail pages
Charge clients, groups, and centers
penalties and one-time and periodic
fees
Assign group and center officer titles
to clients
Support for individual clients outside
of groups and centers
Support client/ member beneficiary
definition
Branch-level holidays and loan
moratoriums
Loan Products & Loan Accounts
Support for group and individual loans
Define unlimited number of loan
product types
Interest calculations: Flat, Declining
balanceequal monthly installments
(EMI), Declining balance - equal
principal installments, Declining
balance - interest recalculation
Loan defaults based on previous loan
amounts or cycle
Define grace periods for full loan
repayments and for principal
payments
Support for periodic fees, fees
deducted at disbursement, one-time
fees, and penalty charges
Support for early & partial loan & fee
repayments
Display of loan repayment schedules
and detail loan account activity pages
Automatically change loan account
state: good standing, arrears, closed.
Repay total loan at any point in loan
cycle
Add notes to loan records
Support for back-dated payments
Savings Product & Accounts
Define an unlimited number of
savings products
Set-up "Voluntary" or "Mandatory"
accounts with specific minimum
deposits for mandatory accounts
Add notes to savings record
Specify "auto creation" of savings
accounts when a client is approved
and made active
Work Flow & Risk Management
The solution gives you complete control
over the activities of your employees.
Work processes can be broken down into
required steps and all activities can be
recorded and searched. Work roles can
be defined with very specific permissions
allowing you define and manage user
access to information and decision-
making and user passwords & log-in can
be controlled.
Configurable work flows
Role-based permissions
Maker-checker work flows
Searchable audit trails
8
Reports
The solution comes with standard
reports generally categorized into six
groups: Clients, Loans, Savings, Funds,
Accounting and XBRL
Some of the standard reports include;
Active Loans Details & Summary
Active Loans by Disbursal Period
Aging Details & Summary
Balance Outstanding
Balance Sheet
Client Listing, Loan Schedule/ Listing,
Saving Transactions & Summary
Collection & Disbursal Report
Expected Payments By Date
Funds Disbursed Between Dates
General Ledger Report
Income Statement
Loan Account Schedule
Loan Transaction Receipt
Loans Awaiting Disbursal Summary
Obligation Met Loans Details
Portfolio at Risk
Savings Transactions
Trial Balance
Transactions Running Balances
Written-Off Loans
 9

How we do it

We start by brainstorming the needs and We handhold & help you market the solution to We continuously evolve the solution to take advantage
specific challenges of your Sacco existing and new customers. of emerging trends & customer needs.
1. Brainstorm 3. Deploy & Market 5. Keep Learning & Changing

2. Innovate & Build 4. Review & Learn

We customize our solutions to We review performance and learn from
best fit your needs customer feedback/ market reception
 10

System Evolution Timeline

The proposed solution can evolve with time as your organization grows.

Advancement of customer/
member self service portal
Back office and Customer/ member mobile app
Front office/ development
Teller applications USSD Service integration

MICROFINANCE
Phase 1 SERVICES Ultimately

SACCO Phase 2 FULLY FLEDGED

SERVICES BANKING SERVICES
Customer/
Member Self ATM/ Card Services
service portal Agency banking services
Mobile money services.

Why Work With Us
Were Highly Innovative
We are always coming up with ways to
make sure our solutions fit your
business environment. Whether this
requires a change in technology or
equipment, you will always be
01 guaranteed of a solution that can work
without loosing the bigger picture.
We Are Flexible
We understand that even after a
thorough solution specification, new
needs and requirements will always
arise. We strive to adapt our solutions
to cover any new developments that
are of importance to you. Whether
introduced after the projects starts or
even after completion.
11
We Deliver Quality
We work with one team principle i.e
The customers businesses processes
must always guide how our solutions
work. We strive to ensure that our
products always conform to market
and industry standards.
Were #1 In Customer
Satisfaction
Our customers come first in everything
we do. We ensure that you get support
as you need it, when you need it. No
limiting or capping of support hours.
We understand that when you fail we
fail too.
 12

Our Contact Info

TOVUTI GROUP LIMITED

Cassia Court, A2, Kiambere Rd.
Nairobi, Kenya

Web: www.tovutigroup.com
Email: info@tovutigroup.com
Telephone: +254-736-559570
+254-704-205161