IT Innovation in India

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IT Innovation in India

• Java Softech Private Limited
• Hyderabad
• 5th Dec 2005

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About UsKey Members of Management
Core Management Team
Team Micro Finance Solution

• Nalin Rathod (Chairman)
• An associate member of ICAI, Core Promoter with
  vast financial and banking exposure based at
  Indonesia.
• G V Ramana Murthy (Managing Director)
• A Mechanical Engineer with 25 yrs of experience
  in Blue Chip Companies with expertise in
  Manufacturing,Quality Assurance and General
  Management
• N.Sriram (CEO Director)
• An engineering graduate with 21 years of
  experience with MNCs of IT industry with
  expertise in Banking and Enterprise solutions.
• G Satyanarayana (Director- Technical)
• A Post Graduate from IIT (Madras), worked as a
  Scientist in ISRO and also served as the Advisory
  Member for the Department of Science
  Technology, Government of India.

Marketing M.V.Raman (Vice President) S.R.N.Raju
(Marketing Manager)
Technical Mr.Gopala Krishna (Project
Manager) Mr.G.V.S.Murthy (Technology Manager) Mr
R. Radhakrishna (Project Leader) Mr D Chandra
Shekar (Project Leader)
Customer Support R. Nalini (Account Manager)
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Quality Certification

• Quality Roadmap of Java Softech
• To achieve ISO 17799 (BS7799) certification -
  March 2006
• ISO 9000 CMM Level 3 - June 2006
• Most of the current processes and procedures
  confirm to the standards.
• Currently performing the Gap analysis as part of
  the certification.

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Accolades

• Rated the Best software Evaluated by Prof
  Gibbons of
• CASHPOR and SIDBI
• The real accolade for MATRIX is in receiving
  repeat orders from existing customers.

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Our Esteemed ClientsAt the National level
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Our Esteemed ClientsAt the National level
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Our Esteemed ClientsAt the International level
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Why Us
Challenges in the Micro finance sector

• ? Development of Software to cater to the
  MFIs
• Mainstream banking/financial software is not
  suitable for the operation of MFIs for the
  following reasons
• Lack of clarity regarding requirements resulting
  in gap between the requirements and the
  deliverables
• Industry is constantly evolving.
• No uniform business rules.
• Different models of operations.
• Volume of transactions are high.
• Need to reach the customer at their door step.
• A full fledged tool for studying the socio
  economic impacts is important and not merely a
  computing software.
• Being institutions operating on non-profit basis
  and donor dependent, they cannot afford high cost
  technology solutions.
• Collection of data from remote and rural clients.

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Why Us
Challenges in the Micro finance sector

• ? Problems faced during implementation
• Lack of infrastructure like electricity,
  communication etc.
• Accessibility to the client, since they are
  mostly in far flung rural areas.
• Non availability of hardware support.

• ? Training and Maintenance
• Lack of exposure to use of technology
• Lack of staff with computer knowledge
• Haphazard maintenance of books of accounts
• Lack of basic accounting knowledge.
• Staff turnover
• Informal management systems
• Systems exposed to manipulation by staff.

Microfinancer Matrix is an innovation - a synergy
of the development sector needs and information
technology
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Why Us
What sets apart Micro financer Matrix from a
conventional banking software?
Matrix is neither a conventional banking solution
nor a typical accounting package.. Micro
Financer Matrix is a complete solution for Micro
Finance operations
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Why Us
Java Softech has taken up the challenge, as a
pioneer in Micro finance software, to cater to
every need of MFIs
Matrix has all features that facilitates loan
application processing, credit rating, product
design, disbursement, capturing socio economic
data, financial analysis, MIS reporting,
graphical representation and impact analysis.
All this is possible with just an entry of a
receipt or payment.
Entry of Formal Financial institutions like
banks, Government/donor agencies. Multi-product
/ diverse models /quantum of transactions /
sophisticated reporting requirements has led us
to bring about a software that is simple, user
friendly, robust and flexible ie, Microfinancer
Matrix.
The NGOs using Microfinancer software have grown
exponentially, in terms of no. of branches,
members, new products (loans/savings), loan
portfolio.
Microfinancer, was a desktop version, developed
with Access data as backend and Visual Basic as
the front end suitable for direct lending to NGOs
with less than 3000 members.
Partner of Oxfam India Trust with Microfinancer,
the first version which just about catered to the
needs of the NGO with OXFAM.
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MATRIX Software - Levels of MFI

• Field / Animator level
• More time for securing more clients.
• Increase in outreach.
• Middle Management
• Proper administration.
• More time on the field meeting clients.
• Top Management
• Effective decision making.
• Better Control.
• Efficient Fund Management
• Overall Organisation and from Funding Perspective
  
• Increase in profitability.
• Better utilization of resources.

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Matrix - Growth
Automation of processes at the grassroots level
is the need of the hour
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Our Customer Growth
A Case Study - VWS
18 branches with 1,25,000 members
12 branches with 68000 members
9 branches with 18000 members
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Matrix in simple steps

• Capture Organization details
• Define Products offered by MFI
• Assess the Applicants and Groups
• Create Loan / Savings accounts
• Disburse the loans
• Repayments
• Savings deposits and withdrawals
• FA and MIS reports

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Why Us
End-to-End Approach
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Why Us

• Pioneer in the field of Micro finance software.
• Design enables capturing of socio-economic
  information of the clients along with the client
  transaction information.
• Over the years, domain knowledge expertise has
  helped in simplifying the complex needs of the
  sector.
• JSPL reaches its customers in the remote rural
  areas.
• Management of high volumes of transactions.
• Flexible to suit all models Grameen, SHG,
  Federation, Rural Banks.
• User defined reports, CGAP prescribed reports.
• Credit rating of members.
• Enables NGOs/MFIs to scale up their operations,
  in terms of volume and outreach.
• Focus on sustainability of the NGO/MFI as well as
  socio economic empowerment of the poor.

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Why Us

• Very few solution providers in the micro finance
  sector.
• Single time entry of customer information and
  simple screens for capturing transactions.
• Socio economic reports, impact assessment etc.
• Self Grading of SHGs (CRI).
• Customization possible to suit organization
  specific business rules and methodology of
  operation.
• Product design supports MFIs irrespective of
  their size.
• Strong Customer Support Services to the rural
  clients. Online/remote support provided to the
  customer.
• Training provided in customer location especially
  to the rural staff.
• Supports development interventions by the
  Government as well as multi lateral agencies.
• Product is evolving with the industry. Product
  enrichment through periodic releases.

Investing in MATRIX implies investment in the
experience of an industry and not the best ideas
of a few people.
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Product Components
Matrix (M.F.) Modules
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Product Components
Loan Processing
Products
Socio Economic Details

• Loans
• Flat / Diminishing / EMI
• Savings
• Regular Savings

• Personal Details
• Nominee Details
• Assets Details
• Liability Details

• Economic Data
• Income/Expenses
• Assets/Liabilities
• Credit Rating
• Collaterals, Assessment and Sanctioning

• Loans
• Floating Interest / Effective Dates
• Savings
• RD / FD / SB a/c
• Subscription
• Insurance

• Cash Flows
• Credit Rating
• Periodic Monitoring
• Grading SHGs

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Report Suite
Operating Reports
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Report Suite
Accounting Reports
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Marketing Plan
Market Potential 2005-06 (Estimates)
Market Potential 2005-06 (Estimates)
Estimated Growth _at_ 40
Source Small Change - Magazine on Micro
Finance,and CGAP list of Micro Finance Software
Products (These are rough estimates only, Actual
Micro Finance Software Market Potential is not
available)
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Market Segmentation
Primary Market
Target group unaware of automation for their MF
operations. Bihar, Madhya Pradesh, Uttaranchal
and North East States
Developing Market
Orissa, West Bengal, Rajasthan, Gujarat, Uttar
Pradesh and South Indian States
Matured Market
Consultants, Training Institutions, Network
Agencies, Funding Agencies and large MFIs
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Marketing Strategies
Short Term Strategy
Implement Confidence building measures to retain
potential and existing customers
Long Term Strategy
Concentrate on International Market Approach
Mother NGOs Donor Agencies Wholesale Financial
Institutions, Networking with consultants and
training institutions.
Bringing Technology to the threshold of the
Poor Personal Digital Assistant (PDA) Instant
recording of transaction and data transfers. Foto
Form/Foto Pass Identification and security using
Bio Metrics SMART Card Transaction record and
status.
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Revenue Models
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eMatrix The Future
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