Star Knowledge MF Core Micro Finance Solution

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MF Core Micro Finance Solution ®Reducing Physical Barriers with Technology

Contents

Introduction

Micro Finance Market Trends

MF Core Solution Framework

MF Business Requirements

MF Core Value Proposition

Star Knowledge Supporting Services

Customer References

Product Roadmap

Contact Information

MF Core - Screen Displays

Introduction

1. Star Knowledge sells the MF Core ® Solution from the Star Knowledge

Focus Solution Portfolio.

2. MF Core ® Solution – is designed to automate a micro finance

Institution’s core banking operations. The system offers users full

operational integration, total process control, and provides dynamic

elements to expedite management decision making.

3. Star Knowledge supports MF Core ® with customization,

implementation, and technical support services for customers on a

global basis.

Micro finance is defined as a provision of Micro Finance Institutions (MFIs)

of extending credit and other financial services of very small amounts of

money to the poor population in rural, semi-urban or urban areas to enable

them to improve their income and improve their overall living standards.

What is Micro Finance?

Financial opportunity shouldn’t belimited to those with traditionalassets or credit stories that a bankcan respect.

The Micro Finance (MF) industry, globally, is experiencing major growth

fuelled by recognition of the need for financial inclusion of larger

populations in most countries. This objective requires quick implementation

of services delivery network, establishment of strong business processes

and workflow and above all, building of controls & compliance across

growing enterprises.

The Micro Finance Industry

According to McKinsey & Company (2010) in excess of 2.5 billion or a

third of the world’s population still does not use banks or micro finance

institutions.

2.2 billion of these people reside in Africa, Asia, Latin America and

the Middle East.

These numbers clearly represent opportunities for financial

institutions in their domestic markets to offer an innovative range of

high-quality, affordable micro finance products and services.

Micro Finance Industry Research

Micro Finance Universe

Providers * Products Customers

Finance Companies

Savings & Credit Coops

Big Box Consumer Retailers

Insurance Companies

Property Developers

Money Transfer Agencies

Mobile Phone Companies

Small Loan

Micro Loan

Educational Loan

Credit Loan

Mortgage

Consumer Loan

Checking Account

Savings Account

Remittances

Families (Poverty)

Micro Entrepreneurs

Small Farmers

* Micro Finance Institutions (MFIs)

Market Trends: Technology

Technology will play an important role in achieving the goal of making

financial services available to poor people and people and people living

in remote or low populated areas.

As the technological infrastructure (internet, cell phone networks)

continues to improve, people will be able to do their transactions

without any physical contact with a bank branch or a MF credit officer.

Transaction costs will thus be significantly reduced and “exclusion” on

grounds of being too far from a physical outlet will continue to diminish.

The rapid proliferation of cellular phones around the world has changed

the course of human development.

At the same time, 1.7 billion low-income cell phone users do not have a

bank account. Thus they remain outside of the sphere of economic

opportunities that is represented by financial access.

Through their phone connections, small business owners, farmers and

others either living in rural areas or at the bottom end of the socio-

financial pyramid are obtaining the capability to communicate instantly

and transfer funds to individuals and institutions.

Market Trends: Mobile Technology

What is MF Core? - 1

MF Core is a modern and reliable micro financing solution that enables

MF providers to reach out to this market, with a banking solution that is

easy to implement, user-friendly, yet capable to scale up to support a

high velocity of growth of customers and expand the range of products

and services.

MF Core is a fully integrated banking solution that features

comprehensive CRM, deposit and lending capabilities, branch

automation and a wide array of rich functionality and enabling

technologies from biometrics to ATM and POS gateways, Internet

banking, and Smart Phone and Mobile Device capabilities.

MF Core has been created around a core system and an array of modules

that a MFI can select depending on their current and future business

needs.

MF Core is an out-of-the-box solution that can easily be customized with

a wide range of functional modules and technical capabilities.

What is MF Core? - 2

MF Core Solution Framework

MF Core: Key Features

Customer-centric

Event driven

Scalable and adaptive SOA

Online real-time system

Multilingual

Business-service and Workflow

oriented

Security Access Control of the

system – User Levels

Connecting through LAN and

Auto Database Backup Process

Connects to Multiple

Applications, Multiple Database

Smart Phone and iPad type Mobile Devices integrating within MF Core enabling:

Access Account Documents, Balances, Transactions, and Statements and other account information

Transfer funds

Pay Bills

Enter Deposit Notification

Enter Loan Payment Notification

Transaction Alerts

MF Core provides an automatic, transparent and comprehensive audit trail meeting most major compliancy requirements.

MF Core: Mobile Capability

MF Core Solution is a robust and scalable platform that automate micro

finance business processes on a single technology backbone.

MF Core is built on the principles of Service Oriented Architecture (SOA)

and designed to meet the requirement of Micro Finance industry.

Integrated scalable ODBC databases with excellent performance capacity for

increased number of concurrent users or higher data volumes.

Excellent connectivity on Local Area Network (LAN) and Centralized Wide

Area Network (WAN)

MF Core: Architecture

MF Core is built within the below technical environment:

Microsoft .NET Framework 3.5

ASP.NET, C#, HTML

Web Services

JavaScript’s, AJAX

MS SQL Server 2008 & Reporting Services

Linux & C++ for integration with Hand Held Terminals

MF Core: Technical Environment

MF Core: Logical Model

MF Core: Modules - 1

Lending Management

This module enables creation and management of different loan products, tracking of

both individual and group loans, monitoring of the loan process from application

through delinquency management and collection, reporting in their original currency,

disbursement and re-payment.

Deposit Management

This module enables the opening and management of customer deposits, withdrawals

as well as enabling customized products suited to their local consumer needs.

Accounting & GL

This module enables the automatic generation of reconciliation reports, balance

sheet, P & L statements, cash flow statements and more

Customer Relationship Management (CRM)

This module enables quick and easy customer relationship management. All the

information associated with a customer - loans, savings, defaults; EMI date etc is all

available in one click for access, review and connection to a service center or Chat

facility.

Reporting & Business Intelligence (BI)

This module enables building metrics-based monitoring and reporting capabilities for

key management decision making with a dashboard and customized alerts. The

module easily maps to the leading commercial and open source business intelligence

tools and a data warehouses.

MF Core: Modules - 2

Value Proposition: The Universe

End CustomersMFI Providers

Products

Value Proposition: End Customers

Inexpensive

Access via alternate channels (mobile, POS, and ATM)

User friendly

Secure processing

Value Proposition: MFI Providers

Cost-effective versus competitive MF solutions

Built on highly scalable open architectureEasy and fast to develop new products and services Supports banking operations across entities, time zones, languages and currencies Simple integration with legacy back-office systemsAll-encompassing support for delivery channels including branch, internet, call center, and mobileLeverage existing systems for quick deployment and less redundancyEmpower non-technical end users to easily create reports and customize templates

MF Core Customer References

Current end users of MF Core: 350,000

MF Core Product Roadmap - 1

Star Knowledge’s 2011 MF Core Product Roadmap includes the below

new functionality and features:

SMS Channel (For India only): Support banking operations for making

payments, paying bills and retrieve account information, and balance and

transaction history. A customer has the capability to validate and confirm

incoming (SMS) payment requests by replying with a PIN.

Point of Sale (POS): Support credit or debit card payments. The platform

implements the "dumb card" paradigm where the credit and debit card, POS

or mobile phone has no internal data storage and is exclusively used to

provide authentication, confidentiality and data integrity.

IVR (Interactive Voice Response): Support customers conducting banking

activities by calling a phone number (via mobile phone or land line) that

responds to a IVR system. Through an audible menu the customer can choose

activities that she or he wants to perform. Authentication and confirmation is

handled by PIN and call-back. If required, the call can be routed to a call

center for personal assistance.

Hand-Held Document Scan: Support the MFI Agent scanning customers’ loan

repayment documents and deposits – checks, and cash items and providing a

hard copy image of the transaction as a confirmation of the transactions. This

capability can be used with biometrics for customer authentication.

MF Core Product Roadmap - 2

Supporting Services

Star-Knowledge provides the following supporting professional services:

Software Customizations, Extensions, & Integration

Installation

Business and Technical Training

Help Desk Support 24/7

Software Maintenance & Upgrade

For Additional Information

Additional Information

http://www.star-knowledge.com

Contact

Kevin M. O’SullivanStar Knowledge Technology Alliance Team, LLC

os@star-knowledge.org

Kalpesh V. MehtaStar Knowledge Technology Alliance Team, LLC

kalpeshvm@star-knowledge.com

MF Core – Screen Displays 1