Real-time reporting enables MFIs in Myanmar to improve access funding
As a microfinance institution (MFI) operating in Myanmar, your business helps financially excluded individuals access the capital that they need to build a brighter future for their families. Yet – like many MFIs in Myanmar – you may lack access to the capital that you need to grow and serve more individuals in your community.
You can access the funds you need to expand your reach and to grow your loan book through a relationship with a microfinance investment vehicle (MIV), development finance institution or a private donor. However, there is a limited amount of capital available from these sources and a great deal of competition. To make sure that your business has access to this capital, you must meet the long list of the funder’s reporting requirements.
What funders and investors require from your MFI
Typically, funders will ask you to produce some or all of the key performance indicators:
Gross Loan Portfolio (GLP)
Average loan size
Outstanding and disbursed loans
Average maturity of loans
Market share by assets, by GLP, by number of clients
PAR levels – PAR30, PAR60, PAR90, PAR180
Loan loss provision ratio
Number of rescheduled loans and reasons for the rescheduling
Monthly productivity of loan officers
Interest rate – based on outstanding portfolio and disbursements
Cost of funding
Your reports and statements should follow the applicable international accounting standard for your country – usually Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). You should also adhere to international definitions and standards when calculating PAR and other core metrics.
Boost your access with accurate, real-time reports
Many MFIs in Myanmar still follow cumbersome, multi-step processes to consolidate portfolio data across multiple branches and loan officers, and rely on historical reports that are three to four weeks behind the latest events in the business.
Today’s cloud-based business solutions allow you to view and consolidate transactions in real time. With Instafin, Oradian’s cloud-based core banking system, MFIs in Myanmar can create reports that follow best practice using real-time data, with just a few clicks of a button.
From any device with any Internet connect, you have access to real-time data about your business and your portfolio. Access to real-time data and reports not only helps you to pass the funder’s due diligence process, but enables you to build a relationship with your potential funders. Transparency and accurate data enable your potential funder’s to trust your MFI and feel more confident investing or lending to your business.
Interested in learning more about Instafin?
Instafin enables you to manage all of your operations and automate your reporting processes. Contact us for more specific information about Instafin’s reporting function and capabilities.