CASE STUDY
CASE STUDY
Background
In 2012, Pact’s microfinance operations which had been providing small loans to citizens started working as Pact Global Microfinance Fund (PGMF), a new government-licensed entity. In 2015, PGMF had a USD 107 million gross loan portfolio with 607,290 active borrowers. Over the course of their 24+ years history, they have aided over a million people, 98 percent of whom are women. Pact Global Microfinance Fund is currently Myanmar’s largest microfinance institution.
The
Problem
Since 1997, PGMF’s microfinance operations had been running on paper ledgers. This took up a lot of PGMF’s time and money, and there were a lot of mistakes along the way. After realizing the disadvantages of a paper-based approach, PGMF wanted a software solution to help simplify their operations.
PGMF engaged with Southtech to automate all of PGMF’s microfinance operations with Ascend Banking (ABS), the desktop version of Southtech’s flagship microfinance software – Ascend Financials. Through ABS, PGMF is now able to conduct real-time screenings during local operations, decreasing scope for any intentional or unintentional errors in underwriting, disbursing, and collecting loans. They are also able to gather meaningful data on weekly and daily KPI through our integrated BI tool.
The Solution
Benefits
With a switch from a manual to an automated system with Southtech, PGMF has grown rapidly over the years having availed some of the following benefits:
~$2M
Acquired in previously uncollected interest
288
Branches automated
21
Days early delivery
7
Months for implementation
Benefits
With a switch from a manual to an automated system with Southtech, PGMF has grown rapidly over the years having availed some of the following benefits:
~$2M
Acquired in previously uncollected interest
288
Branches automated
21
Days early delivery
7
Months for implementation
Combating the COVID-19 Pandemic
With Southtech’s ABS updating the interest accrual automatically, PGMF was able to ensure the organization’s assets remained protected while extending the loan term for its borrowers. This allowed PGMF to automatically reschedule their entire loan portfolio as well as custom reschedule for specific borrowers and as a result withstand the repayment uncertainties during the Wave 1 lockdown due to the COVID-19 pandemic.
Loan portfolio size increased by 2.1X
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