Download - MICRO Finance Strategic Plan
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RATISSON FINANCE STRATEG
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CONTENTS
1. BACKGROUNDa) Context
b) Rat!!on Fnan"e St#ate$" %o&n'aton!
") Rat!!on Fnan"e Co#(o#ate D#e"ton
') B&!ne!! S"ena#o! Co&nt#*+ Fnan"a,
Se"to#+ Rat!!on Fnan"e
)2. STRATEGIC CONTE-Ta) St&aton A!!e!!ent %o# Rat!!on Fnan"e
b) C#ent S"ena#o! %o# Rat!!on Fnan"e
") Fo"&! Goa, %o# Rat!!on Fnan"e
') F&te !"ena#o! %o# Rat!!on Fnan"e
e) F&te B&!ne!! /o'e,
. STRATEG ORKINGS
a) C#t"a, S&""e!! Fa"to#! 3 Ke* Re!
b) I(,eentaton P,an!
)4. NE-T STEPS
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BACKGROUND
RATISSON FINANCE STRATEGIC PLAN
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BACKGROUND5 CONTE-T1) Rat!!on Fnan"e ! a !ta#t &( "#o7nan"e "o(an* an' 8a! 9&!t !&b
a((,"aton %o# a "#o7nan"e b&!ne!! ,"en!e :t8 t8e Re!e#;e Ban< o%=bab:e. P#o!(e"t! o% !&""e!!%&,,* obtann$ t8e ,"en!e a#e 8$8.
2) Rat!!on Fnan"e P;t) Lt' ! #e,ate' to B#an"e P;t) Lt'+ Fa#e#! a#e8oP;t) Lt'+ Sta$e /a!te# an' So&t8 Ba* P;t) Lt'. A,, t8e "o(ane! a#e :o:ne' b* t8e Rat!!o %a,*.
) T8e "o(an* obtan! t! nae %#o t8e :o#' >Rat!o?+ ben$ t8e o#$na!nae o% t8e Rat!!o %a,*. Rat!o ean! ;!on.
4) Rat!!on Fnan"e 8a! n8e#te' !oe a!!et! an' ,ab,te! %#o B#an"e T8e !8a#e8o,'e#! 8a;e #e'&"e' e@&t* n ot8e# "o(ane! an' e;en ",o!oe no#'e# to n;e!t n Rat!!on Fnan"e.
) T8e !8a#e8o,'e#! a#e not
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BACKGROUND5 !t#ate$" %o&n'aton P(o!eDe!tn* an' a,&e!
P(o!e 5 >To "ontn&a,,* (#o;e t8e ,;e,8oo'! o% t8e "o&nte! :e o(et8#o&$8 8a!!,e %#ee a""e!! to "#e't an' (#o;!on o% "&!toe# %o"&!e' !e#;"
/!!on 5 >To "#eate an' "ontn&o&!,* n"#ea!e !8a#e8o,'e# ;a,&e t8#o&$8 t8e(#o;!on o% ex"e,,ent !e#;"e an' nno;at;e (#o'&"t! to t! "&!toe#! an' a
"on'&";e :o#C&!toe# %o"&!+ Inno;aton an' exb,t*+ Re!(e"t+ one!t*+ Inte$P#o%e!!ona,!?
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P , a * 6 o G !
Re,e$aton =one
CO/PETITIENESSHE
INTERNAL
AR/ON
INTERNAL
CONFLIC T
P#ee# Lea$&e
-
Se"on' D;!on
Fa,e' State
Lagging Infrastructure development
Political Instability
Conflicting policy
Increasing rates of unemployment
100
0
0
CO/PETITIENESSE
2015
2015
2016
Increased
FDI
Stable
government
International
acceptance
T8e "o&nt#* ;a#ab,e! 8a;e been 'e7ne' a!t8e !ae a! So&t8 A%#"a+ ben$"o(ett;ene!! an' Inte#na, 8a#on* J"on"t. T8e!e ;a#ab,e (#o;'e %ea!b,e!"ena#o! :8"8 8a;e been 'e!"#be' be,o:%#o a =bab:ean Context.
1)Premier League T8! ! t8e a#ea! :8e#et8e "o&nt#*! "o(ett;ene!! 8a! (#o;e'!$n7"ant,* :t8 n"#ea!e FDI an' nte#natona,a""e(tan"e+ n t8e next %e: *ea#! t ! not %e,tt8at =bab:e :,, 8a;e #ea"8e' t8! !ta$e 9&!t %#o a((#e"atn$ :8e#e t8n$! a#e!ta#tn$ %#o a! !&"8 t8e "8an"e o% t8!o""#n$ b* 2016 8a! been #ate' a! 0%
2)Second Division In t8e !e"on' ';!ont8e "o&nt#* ! no: n a (,a"e o% nte#na,8a#on* a,t8o&$8 "o(ett;ene!! ! !t,,#e,at;e,* ,o:. In =bab:e! "a!e t8! ! ;e#*&n,
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/ARKET HE
IGECONO/I
CGROT
LOECONO/I
CGROT
C#!!
Sta#Ca!8 Co:
Potenta,
/ARKET E
Telecoms
Mining (Non
Precious
Minerals)
Financial
Services
Manufacturing
Funeral
ssurance
!etail
Tobacco
ll "t#er
Insurance
•
gro $ased• Mineral %alue ddition
Mining
(Precious
Minerals)
2016
T8e n'&!t#* ;a#ab,e! 8a;e been 'e7ne' a! 8o: (a#
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BACKGROUND5 "o#(o#ate '#e"ton %o# 20 Ta
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S'&!-*" "ON!./ '&*SSON F*N&N"! "''!N S*&*ON &SS!
Key Areas Positives Challenges Compos
Funding
• de&uately capitalised'
• %ariety of funding internal and eternal
• Funding is limited'• !egulatory c#allenge'
• N" #ave conditions t#ey attac# to funding so target mar*et may not be our corebusiness and terms may not be conducive
• No N" bac*ed funding on our boo* so far
+,-
.or*ing ICTS
• N/
• No system in place at all'• No C!M for t#ere to be 01, degree vie2 of customers• No MIS for important business reports
• "nly 3 des*top in place 4 t#e t2o current managers use o2n laptops
,-
S*ills and !e2ards
• S*illed and eperienced top management
• Inade&uate staff compliment• "nly t2o staff members
• No loans officers5 receptionist and administration staff
• 6ifficult to segregate duties
• !e2ard system not mar*et related
• rading system not reflective of 2or* demands and s*ills level
3,-
Target mar*et gro2t#• Covering all target mar*ets'(Micro small to medium scale enterprises)
• Company not yet eposed to t#e difficult mar*et segments
• $oo* is s*e2ed to2ards agri7trade (tobacco) sector'• "ne client constitute greater t#an 8,- of t#e boo*
• Not fully captured t#e female and rural mar*et'(agriculture)
3+-
6elivery c#annel
• Collection arrangements'
• 9uic* turnaround time'• mbience of :ead offices'
• No branc# net2or*'• No systems in place 7 C!M
• 6isbursement c#allenges in areas 2e do not #ave presence'
• Manual systems 2it# a lot of paper 2or*'• No motor ve#icles for client visits and for efficient service delivery
0,-
Product innovation • .ide array of products to be introduced'• Convenience in terms of disbursements'
• Not competitively priced in MFI mar*et (2or*ing capital loans)'
• Loan tenure for 2or*ing capital is too s#ort'1,-
Commercial culture • 6aily performance trac*ing'• $usiness cases'
• Productive staff performance trac*ing'
• ppraising potential partners and revie2ing relations#ips'
• Focusing on core business'
• Lac* of proper mar*et penetration strategies'
• Inade&uate performance trac*ing mec#anisms (due to MIS)
1,-
Corporate governance • :ave an effective $oard• ood relations 2it# regulator
• Compliance levels 2it# regulator are satisfactory
•
$asic ris* mgt frame2or* in place'• d#erence to core client protection principles
• Compliance oversig#t is inade&uate (internal perspective)
• Need for company rating '
• S#are#older interference in operations
1+-
Rat!!on Fnan"e 8a! a!!e!!e' t! "#ent (o!tonn$ n ea"8 o% t8e!e a#ea!
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"''!N *"'O F*N&N"! S!"O' S"!N&'*OS *,&,4!
PREPARED B BRIAN K
/"#oKn$ ! t8e o!t 'onant (,a*e# n t8! !e"to# at t8e oent.
NO!S/ARKETHE
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Inten!;e Ca#e Unt
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S'&!-*" "ON!. / '&*SSON FO"S -O&L 2016
>Penet#ate t8e ,o"a, a#
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S'&!-*" "ON!./ '&*SSON 2016 S"!N&'*O
PREPARED B BRIAN KUFAAKUTI=I
In ,ne :t8 t8e %o"&! $oa, Rat!!on #e;e:e' an' a'o(te' t! %&te (#o9e"ton! o% :8e#e t :o&,' nee' to%o# t8e %o"&! $oa, to be a"8e;e'.
NO!S
Ba!e' on t8e 'e!#e' 2016 !tate+ R"on!o,'ate t! (o!ton n t8e 8ea,t8(,a"eent 8a! been $;en a 40 "#eann$ n t8e !tate o% O&t(atent40 "8an"e. An 20 "8an"e ex!t tFnan"e a* !,( nto t8e Inten!;e
P#ee# Toba""o 'e%a&,t! on t! %a"
T8e 'e!#e' !tate %o# 2016 8a! been(#e'ete#ne' %a"to#! an' t8e "o&n=bab:e :,, be n t8e *ea# 2016 :,, nee' to %o"&! on (enet#atn$ ne"a(tn$ ",ent! %#o "o(etto#! aa((ette %o# /"#o Fnan"n$ !o a! tot8e "a
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Template Source: www.businessmodelgeneration.org
S'&!-*" "ON!./ '&*SSON ,S*N!SS OD!L "&N+&S
PREPARED B BRIAN KUFAAKUTI=I
In ,ne :t8 t8e !et %o"&! $oa,+ Rat!!on :,, nee' to 'o b&!ne!! n a "e#tan :a* an' a! !&"8 a ("te o% o'e, 8a! been 'e7ne'.
Rat!!on :,, %o"&! $#o:n$ t! ",ent baon #ea, e!tate o:ne#!,e;e,! o% t8e n%o#an bot8 #a, an' ba$#"&,ta, !e"to# anb#a"
To 'e,;e# t8! ;a,&e+on a#
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RATISSON FINANCESTRATEGIC PLAN 2016)
St#ate$
PREPARED B BRIAN K
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O,
• Se"n$ ,ne! o% "#e't
• Co!t ana$eent
• Po#t%o,o $#o:t8
• A""e!! a''tona, "a(ta, %#o t8e !8a#e8o,'e#
• E!tab,!8 o(t& "a(ta, !t#&"te %o# t8e b&!ne!!
• Set &( ba"
• Ben"8a#< "o#(o#ate $o;e#nan"e !tan'a#'! a$an!t nte#natona,
ben"8a#
• Set &( ba"
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OBECTIE I/PLE/ENTATIOPLAN 5FUNDING1 Focus &rea F&n'n$ an' (#o7tab,t* &ccounta:ilit8 anaging Direct
O:@ective Name 'aise adeAuate >unds >or on lending and ensure 7roBta:ilit8
o$ $ill $e ac#ieve t#is O:@ective
&ctivities and as?s imings "osts 'es7onsi:le Su77ort *n>orm
1 Ra!e ,on$ te# %&n'n$ %#oexte#na, 3 nte#na, !o"e!+ &ne201 4. + 10 De" 201.
On$on$ TBA /D F/+O/+ Boa#'
2 En!e &t,!aton o% a;a,e' ,ne!o% "#e't to t8e ,t
On$on$ TBA O/ F/+BD/+ O/ /D
Re'&"e "o!t o% %&n'n$ %#oa;e#a$e o% A&$&!t 201 to1M b* De" 2016
On$on$ TBA F/ O/ /D
4 Co!t "ontanent On$on$ TBA F/ OD! /D
En!e #e;en&e $#o:t8 n ,ne :t8ta#$et
On$on$ TBA /D F/+ O/ Boa#'
6 S"o&t %o# non %&n'e' n"oe "o!!on! %#o one* t#an!%e#a$en"e!+ $#ant! an' %ee! %o#a';!o#* !e#;"e!
/ont8,* TBA /D F/+ BD+ O/+ Boa#'
o$ $ill $e rac? t#e O:@ective
Per>ormance *ndicator FreAuenc8 o> easure nit o> easure arget
ROCE /ont8,*
Co!t o% %&n'n$ /ont8,*
Co!t to n"oe #ato /ont8,*
PREPARED B BRIAN K
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OBECTIE I/PLE/ENTATION PLAN 5 ORKING IC
2 Focus &rea o#orm
1 I(,eent !*!te!+ /onto#n$ o%!*!te (e#%o#an"e an' en!e(#o(e# 'o"&entaton.
/a#"82016
TBA O(e#aton!/ana$e#
/D R!< an'Co(,an"eboa#'"ottee
2 I(,eent /ISERP+BI+ CR/ 60'e$#ee ;e:)
&ne2016
TBA O(e#aton!/ana$e#
F/+ /D R!< an'Co(,an"eboa#'"ottee
/axe &t,aton o% a;a,e'!*!te!
&ne2016
TBA O(e#aton!/ana$e#
F/+ BD/. /D
4 A"@&#e /FI !*!te /a#"82016
TBA /D O(e#aton!/ana$e#
Boa#'
D!b!eent! o;e# E"o"a!8+te,e"a!8 an' Ea,,et (,at%o#!
De" 2016 TBA O(e#aton!/ana$e#
F/+ BD/ /D
F&,,* #e!o"e' DRS De" 2016 TBA O(e#aton!/ana$e#
F/ /D
o$ $ill $e rac? t#e O:@ective
Per>ormance *ndicator FreAuenc8 o> easure nit o> easure arget
S*!te #e,ate' "o(,ant!. TBA 20
S*!te &(te TBA .
PREPARED B BRIAN K
OBECTIE I/PLE/ENTATION PLAN SKILLS AND REARD
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OBECTIE I/PLE/ENTATION PLAN 5 SKILLS AND REARD
Focus &rea S
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OBECTIE I/PLE/ENTATION 5TARGET /ARKET PENETRATION
4 Focus &rea Ta#$et a#or mar?et leaders#i7 and e7lore o77ortunities >or gro$t#
o$ $ill $e ac#ieve t#is O:@ective
&ctivities and as?s imings "osts 'es7onsi:le Su77ort *n>orm
1 C&!toe# nee'! ana,*!! an'a#
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OBECTIE I/PLE/ENTATION PLAN 5 DELIER CANNEL
Focus &rea De,;e#* "8anne,! &ccounta:ilit8 anaging Direc
O:@ective Name !nsure a77ro7riateE relevant and eCcient deliver8 c#annels
o$ $ill $e ac#ieve t#is O:@ective
&ctivities and as?s imings "osts 'es7onsi:le
Su77ort *n>orm
1 S"an t8e a#
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OBECTIE I/PLE/ENTATION PLAN5 PRODUCT INNOATIO
6 Focus &rea P#o'&"t Inno;aton &ccounta:ilit8 anaging Direct
O:@ective Name Provide 7roBta:leE a77ro7riate and relevant 7roducts
o$ $ill $e ac#ieve t#is O:@ective
&ctivities and as?s imings "osts 'es7onsi:le Su77ort *n>orm
1 De;e,o( an' (a"
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OBECTIE I/PLE/ENTATION PLAN5 CO//ERCIALCULTURE
Focus &rea Coe#"a, C&,te &ccounta:ilit8 anaging Director
O:@ective Name Promote a culture >ocused on 7er>ormance and strategic cost management
o$ $ill $e ac#ieve t#is O:@ective
&ctivities and as?s imings "osts 'es7onsi:le Su77ort *n>orm "
2 B&!ne!! ana$eent !o%t !
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OBECTIE I/PLE/ENTATION PLAN 5 STRONG CORPORATE GOERNAN
M Focus &rea St#on$ Co#(o#ate Go;e#nan"e &ccounta:ilit8 D
O:@ective Name !nsure 100% com7liance $it# internal and eternal regulations
o$ $ill $e ac#ieve t#is O:@ective
&ctivities and as?s imings "osts 'es7onsi:le Su77ort *n>orm
1 De;!e onto#n$ an' e;a,&aton
too,! %o# "8e"
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• ;,- of staff ac#ieving
targets at eac# level
• 1,- Cost< Income
ratio
• 3,,- Compliance to
regulations'
• +- P! greater t#an
0, days
• verage product
profitability 0;-
S t r o n g c o
r p o r a t e g o
v e r n a n c e
= n s u r e 3 ,
, - c o m p
l i a n c e 2 i t
#
i n t e r n a l a
n d e ( t e r n
a l r e g u l a t
i o n sF u n d i n g
! a i s e a d e & u a t e c a p i t a l a n d
e n s u r e p r o f i t a b i l i t y
P r o d u c t i n n o v a t i o
n
P r o v i d e p r o f i t a
b l e 5
a p p
r o p
r i a t e a n d r e
l e v a n t
p r o d u c t s
6 e l i v e r y c # a n n e l s
= n s u r e a p p r o p r i a t e 5 r e l e v a n t
a n d e f f i c i e n t d e l i v e r y c # a n n e l s
T a r g e t m
a r * e t g r o
2 t #
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m a r * e t l
e a d e r s # i p
a n d e ( p l
o r e o p p o r
t u n i t i e s f
o r
g r o 2 t #
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u l t u r e
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o t e
a c
u l t u
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e d o
n
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c e a
n d
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m a n
a g e m
e n t
. o r * i n g
I C T S
6 e p
l o y
r e l e v a
n t a
n d r o b u
s t I C T s
• =stablis# satellite branc#es/*ios*s for selected regions
• Implement an outreac# frame2or* 2it# business members#ip
organisations
• 6evelop interactive 2ebsite and C!M module
• =stablis# standardised information meetings
• !e>one catc#ment areas for branc#es and loan officers'
• Financial management 2or*s#ops for managers and
eecutives
• $usiness management soft s*ills
• 6evelop partners#ip 2it# development organisations
• Training on sales at all levels
• Mar*et5 Product and pro?ect viability analysis before
launc#
• Standardi>ation of processes and systems
• 6evelop incentive sc#eme and performance a2ards
• =nsure &uic* turnaround (ma + days on all loans))
• verage profitability
of 0+- per c#annel
• 3+, Case load per
Loan officer
• @,- Location
coverage
• 6evise monitoring and evaluation tools for c#ec*ing
ad#erence to client protection principles
• =ngage a eternal rating agent
• 6evelop internal compliance function
• 6evelop and implement credit policy
• =stablis# relations#ip 2it# t2o credit bureau
• 6evelop and adopt social performance monitoring tools
• 6evelop and implement appropriate social corporate
responsibility programs
• Intensify recoveries efforts and create/maintain an internal
blac*list'
• =nsure ad#erence to covenants set by financiers
S * i l l s
a n d
! e 2 a r d s
t t r a c t
a n d
r e t a i n
# i g # l y
e f f i
c i e n t s * i l l s
i n t
# e
r i g # t
p l a
c e s
STRATEG I C OB J E C T I V E S
Strategy@Work Summary
2015 - 2016(.#o are 2e5 .#ere are 2e going and #o2 2ill 2e get t#ereD)
s
• Customer needs analysis and mar*et segme
in order to offer appropriate products
• Identify and create associations to i ncrease o
• Identify and develop pro?ect activities 2it# N
development partners
• !educe eposure to Premier tobacco to 3,-
boo*'
• 6evelop client retention strategies 4 Loyalty
programs
• 6evelopment of systems and ensure proper
documentation'
• Implement MIS(=!P5$I5 C!M 701, degree v
• Maimi>e utili>ation of implemented systemsystems5 Coretal*)
• c&uire MFI system
• =nsure IT training for all staff
• Commence disbursements over mobile bas
platforms li*e =cocas#
• Fully resourced 6!S
• !aise long term funding from eternal E inte
sources5 6ec B,31'
• =nsure utilisation of availed lines of credit to
• !educe cost of funding from average of 0+-
to 3@- by 6ec B,31
• Cost containment
• =nsure revenue gro2t# in line 2it# target
Customer focus !espect :onesty and Integrity Innovation and Fleibility Professionalism
P#RP$S%
GTo continually improve t#e liveli#oods of t#ecommunities 2e operate in t#roug# #assle free
access to credit and provision of customerfocused serviceH
&ISSI$'
GTo create and continuously increases#are#older value t#roug# t#e provision of
ecellent service and innovative products to itscustomers and a conducive 2or*ing environment
in 2#ic# every employee is encouraged andassisted to develop to t#eir full potential'H
F$C#S $A) *0+
GPenetrate t#e local mar*et offering sustainableand innovative microfinance solutions G
• 6evelop and implement effective staff 2ellne
initiatives to increase staff engagement level
• 6evelop and implement incentive system in
international best practices to re2ard perform
• 6evelop and resource structure in line 2it# s
• !evie2 ?ob descriptions
• Conduct a ?ob grading eercise
• Implement an effective training program for
and bac* offices'
• 6evelop and Implement a staff rotation syste
• =nsure effective implementation of performa
management system
• =nsure effective leave day management sys
• 6evelop and pac*age product offering'
• Conduct mont#ly product performance monitoring
• 6evelop and pilot 0 ne2 products annually' (:ousing 6evelopment loans5
=nergy Loans5 sset Finance5 order finance5 6airy Finance etc')
• Introduce start7up entrepreneurs#ip loans
• Product 6iversification 4 6evelop advisory E Training services pac*age
•Set and continuously revie2 business conditions
&'!&S 4* ,*--!S ,S*N!SS *P&"
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PREPARED B BRIAN KUFAAKUTI=I
&'!&S 4* ,*--!S ,S*N!SS *P&"
1. Goo' ,ea'e#!8(
2. S*!te
. Ina'e@&ate %&n'n$
4. /a"#oe"ono" !t&aton
. Ca(a"t* to !e#;e a#