1. EMN CONFERENCE Internet-based information technology in microfinance -
Improving the quality of services
London
23-25 June 2010

2. Internet-based service providing system
Regional Foundation
for Enterprise Promotion
of the Town of Székesfehérvár
Overview
Established in 1991
Activities:
microcrediting/microfinance
more than 2000 clients to date
281 active clients
EUR 13 M disbursed to date
average loan size: EUR11 – 37000
teaching entrepreneurial knowledge
Internet-based service providing system
used by 12 LEA
Giordano Dell’Amore Award
Jasmine TA
OVERVIEW
FEA was established in 1991 with the support of the European Committee to handle enterprise promotion projects. Its scope of activities has changed during the years. Currently its core activity is microcrediting and microfinance, which it has been performing since In the past 19 years it has served more than 2,000 clients and disbursed over EUR 13 M. At the moment the number of its active clients is 281, and the average loan size is between EUR 11 – 37 thousand.
In addition to microcrediting, the foundation plays an important role in disseminating entrepreneurial knowledge in secondary schools and higher education institutions, which is done within the scope of a co-operation.
In order to accelerate the credit management process, the foundation developed an internet-based complex service providing system. The various modules of this system is already used by 12 LEA in Hungary. The system was also selected among the five best practices by the Giordano Dell’Amore Award in 2009 and the foundation was selected to participate in the Jasmine TA project.
Fejér Enterprise Agency ®

3. Target groups: Clients Credit brokers MFIs MODULES
online credit application
online credit application
online credit application
MODULES
The system provides services to three target groups: clients, credit brokers and for MFIs. What are the modules that are available for all three target groups? The first module enables the users to submit a loan application on line.

4. webshop wizard check-list remote help
online credit application
online credit application
Online credit application
Online credit application Online credit applications provide an alternative to paper-based credit applications. The application process is webshop type, where the clients place the selected credit construction into a basket. To complete the application is simple and fast. The client is taken through the application process step by step by the microcredit wizard, which gives instructions to the client as to the information to be provided. The wizard shows the next step, and indicates where the client is in the application process. The application cannot be closed until all the requested details have been provided by the client. There is a checklist on the side of the screen which helps to identify the still missing details. The already completed details are marked with green, whereas the missing information is indicated by red.
If the client still gets stuck, and does not know how to get on, they can call a credit officer on the number appearing on the screen. The client dictates the code also appearing on the screen and the officer will be able to see the application and give help immediately.
We are also planning to make a video presentation to help clients to complete the application process.
After the closure of the application the system automatically generates it in pdf format, which can be printed by the client. 4

5. Target groups: Clients Credit brokers MFIs
online credit application
online credit application
online credit application
financial analysis
The second module helps the users create a financial analysis of the business activity. 5

6. financial analysis
financial analysis
financial analysis
Financial analysis
This is a very useful module of the system. During the application process the system asks for the balance sheet details of the past. On the basis of this information the system prepares an analysis about the enterprise. In the analysis colour codes help the assessors determine the actual financial situation and risk of the enterprise. The client can make this analysis for himself, the credit brokers and MFIs can offer the preparation of this analysis as a service to their clients, and it is also an important part of the credit assessment process. In the analysis the system looks at the liquidity, indebtedness profitability and efficiency of the company. 6

7. Target groups: Clients Credit brokers MFIs
online credit application
online credit application
online credit application
financial analysis
company browser
company browser
The next module is the Company Browser. 7

8. company browser
company browser
company browser
Company browser
With the help of this module clients and MFIs can register in the system. There is an interface where they give the most important details of their organization or enterprise. They use key words to describe their activities and where they operate. This module can also be used as a partner search function. Enterprises can look for business partners, suppliers, customers, business angels, etc. with the help of the registered information. 8

9. Target groups: Clients Credit brokers MFIs
online credit application
online credit application
online credit application
financial analysis
company browser
 The last module available for these three target groups is microsites.
microsites 9

10.  Creating micro-sites
Registered users can create their own microsites by completing a simple form, where they give basic information about their organization or enterprise, the products, services offered by them, their other activities. They can also upload logos, photos, maps, etc. to the micro-site. Later on data can be collected from the information provided by the registered users.
microsites
microsites
microsites 10

11. Target groups: Clients Credit brokers MFIs credit assessment
online credit application
online credit application
online credit application
financial analysis
company database
Credit Assessment Management
The electronic credit assessment management was developed to enable the assessors to participate in the assessment process flexibly in their own time. Thus, they do not have to wait for each other. They do not have to arrange meetings and everybody can work at the same time. The whole system is completely transparent, well documented and the documents can be retrieved any time. The system does not exclude the possibility of organizing personal meetings.
This system greatly accelerated the credit application process. Earlier it took around 1-2 months to assess an application, not it takes only 1-2 weeks. The assessment speed does not depend on the technology but on the human factor. 
microsites 11

12. Credit Assessment Management:
Starting the electronic process
Preparatory phase
Expert evaluation
Electronic voting
Closing the electronic process
Let us see how the credit assessment management module works.
The credit assessment management module can be divided into five phases:
Starting the electronic process
Preparatory phase
Expert evaluation
Electronic voting
Closing the electronic process

13. Credit Assessment Management:
Starting the electronic process
Preparatory phase
Expert evaluation
Electronic voting
Closing the electronic process
Credit co-ordinator
Tasks:
to assign committee members
to determine quorum
to set possible closing date
to set , sms sending functions
Starting the electronic credit assessment process
The credit assessment process is managed by the credit co-ordinator. As soon as a new credit application is submitted, the co-ordinator receives an automatic message and/or SMS from the system. He checks what kind of credit is applied for, and starts the electronic credit assessment process.
For this:
he assigns the members of the credit committee
he determines the number of people required for the quorum
he determines when the assessment process is expected to close down
he sets the /SMS sending functions 
After the credit co-ordinator has selected the members of the credit committee, they receive an and/or an SMS from the system about the start of a new assessment process. They login the system, and everybody starts working.    

14. Credit Assessment Management:
Starting the electronic process
Preparatory phase
Expert evaluation
Electronic voting
Closing the elctronic process
Tasks:
Preparation
credit details are checked
necessary documents are uploaded
Debtor rating
scoring system
on-site visit
personal interview
checking past financial performance
Preparatory phase
The preparers check what kind of credit has been applied for, for what purpose, under what conditions it is requested, then download the documents necessary for the assessment, e.g. certificate of incorporation, title deed, from the electronic registers and upload them to the system.
At the same time debtor rating, which is based on a scoring system, also takes place. The data supplied by the client and the on-site visit provide important details for the client rating.
During the on-site visit the assessor interviews the entrepreneur, assesses his personal suitability, how realistic the business concept is, the suitability of the offered collateral, and also examines the past performance of the enterprise.
On the basis of the entered details the system automatically generates the debtor rating and generates it in pdf. format.
If the person conducting the rating thinks that the available information is unsatisfactory, or contains mistakes, he can suspend the assessment process, and send the application back for correction or further information. 

15. Credit Assessment Management:
Starting the electronic process
Preparatory phase
Expert evaluation
Electronic voting
Closing the electronic process
O.K.
Expert evaluation
When the preparatory phase is closed, the expert evaluation phase begins. The experts receive and automatic and/or SMS from the system, in which they are informed about the starting of the evaluation phase. On the basis of the details, documents, photos, videos and other files they evaluate the credibility of the applicant in writing, and make a suggestion whether the application should be accepted or not.

16. Credit Assessment Management:
Starting the electronic process
Preparatory phase
Expert evaluation
Electronic voting
Closing the electronic process
Approved
Electronic voting
The co-ordinator continuously monitors the assessment process and when he judges that the credit application can be passed onto electronic voting, he starts the next phase. The system sends an and/or SMS automatically to the members of the committee having voting right. These people view the uploaded details, files, photos, videos, written opinions, they can add their own opinion, and vote whether the application should be accepted or refused. The votes and written opinion of the members having voting right are recorded by the system by names, and the voting result is logged.  

17. Credit Assessment Management:
Starting the electronic process
Preparatory phase
Expert evaluation
Electronic voting
Closing the electronic process
Credit co-ordinator
Closing the electronic credit assessment project
Finally the system checks if the committee has a quorum, all the documents have been completed and the assessment process can be closed. After the process has been closed the system prepares the minutes, which contains the figures and written opinions belonging to the application. The system also prepares an excerpt of the minutes, which only contains the result. The details of the closed application appear in the internal records (after automatic data synchronization).
When the assessment process has been closed the system automatically notifies the client in an electronic format as well. After this the procedure is the same as the traditional procedure.

18. www.vallalkozastan.hu Vállalkozástan.hu
The system also includes an e-learing module. With its help secondary school and college students can learn how to submit a loan application online. The students work in groups of 3s or 4s, and work with real life data and balance sheets. The educating interface looks exactly the same as the real credit application interface and the students are also helped by the microcredit wizard. Their loan application is checked and evaluated by their teacher, but later on they can also learn with the help of the module how to assess loan applications.

19. www.credinfo.eu Current developments
The system is ready and suitable for being introduced on an international level. Since our organization does not deal with software development and we developed the system for our own purposes, we don’t want to sell it. However, on the basis of our experience and feedback gained in Hungary we believe that various modules of the system might be useful for other microfinance institutions, so currently we are looking for foreign co-operating partners who would be interested in participating in a pilot project and try out the modules of the system. For EMN members registration in the system, the introduction of the organization and the introduction of the credit constructions of the MFI would be free. And if they wish to use other modules of the system, they will only have to pay a maintenance fee for the IT company. The more organizations use the system, the more maintenance fee comes in, and the bigger developments can be made.