Upgrading and scaling to better serve entrepreneurs
California, USA
At a Glance
• Running Temenos Financial Inclusion successfully for 23 years!
• Increased efficiency by 40%
• Reduced customer onboarding time from three days to an hour
• 61% faster to process loan applications
VisionFund International is a subsidiary of World Vision International. Established in 2003, its mission is to support children from economically disadvantaged communities by empowering families through microfinancing for entrepreneurial ventures. As well as loans, it also offers savings and insurance products. It operates 28 microfinancing institutions around the world, 576 branches (with the majority in Africa), and employs over 7,000 staff. To date, it has made over one-million loans totalling $706m, with 69% made to women.
Customer-centric innovation
For Jacinta Kamemba, VisionFund’s Global Director of Digitization, the organization’s mission goes hand-in-hand with an appetite for innovation. “Innovation is really about being customer-centric. We can’t deliver our goals without embracing new ideas and technologies. This is how we bring about the efficiency gains and improvements to business operations that impact the families we serve.”
For most of its 25 years, this technology to service the unbanked sector has come from Temenos.
Temenos Financial Inclusion is a great solution because it is dedicated to microfinance institutions, and comes with many preconfigured capabilities that are distinct from traditional banking. So we can easily adapt to opportunities, which ultimately enables scalability.”
Jacinta Kamemba, Global Director of Digitization at VisionFund
Digital efficiencies
For VisionFund, that has meant expanding from its core lending business to adding deposits and insurance products. “The composable architecture of the platform makes it easy to add new capabilities and to deliver these to customers through digital channels. For example, in Uganda we rolled out a ‘Last Mile Mobile Solution’ that allows loan officers to collect data while they are in the field, enabling them to onboard new customers much faster. We’ve cut that from three days to just an hour.”
This digitization has allowed VisionFund to increase efficiency by 40%, by becoming paperless which both lowers cost and drives sustainability, a core KPI. Loan applications have also benefited, and are now completed 61% faster. Management oversight has also improved as a result. “In the past, branch managers and regional managers had no visibility on field work until they received paper reports from the loan officers. Now they can see what is happening with customer registrations and loan applications in real-time.”
Ultimately, this means happier customers, says Jacintha.
Customers are more satisfied because they are able to get their loans quickly, and that means loyalty and retention is improving.”
Jacinta Kamemba, Global Director of Digitization at VisionFund
The platform’s breadth of capabilities and efficiencies are complemented with robust security credentials, says Jacinta. “The security features that come with Temenos are at a high level. The database is robust, it’s so difficult to crack that system. And therefore it just gives you the comfort and confidence that you really look for when you’re thinking about your growth strategy.”
Always upgrading
Over the years, VisionFund has regularly upgraded its Temenos core. That exercise has become much faster, explains Jacintha. “In 2021 we upgraded the platform in Kenya. It took less than a year, whereas in the past, it could take 18 months.” Ghana, Tanzania, and Zambia are next in line, with go-live due in August 2024. The platform will be configured for each market, a practice that VisionFund has employed from the start. “Customizability is a key feature of the platform for us”, says Jacintha.
Key to this speed is the implementation partners that VisionFund has access through Temenos – SG NewTech for the Kenyan upgrade, and Straj for Ghana, Tanzania, and Zambia.
The partnerships that Temenos has are really credible. They really understand the systems and have strong good project management skills, and that makes implementation much faster.”
Jacinta Kamemba, Global Director of Digitization at VisionFund
The upgrades have also boosted reliability. Today, the Temenos platform is 100% reliable. “It’s available 24/7 to our customers and there are no interruptions at peak times, such as end of the day closing. That gives us confidence that we have the scale to develop and run new offers, such as ATMs.”
Holistic change
For Jacintha, selecting a Temenos certified partner should be a priority for any implementation project. She adds that change management is also key. “Change is not easy, and there will always be resistance. Gain confidence at the highest level of your organization. Once you have that in place, it trickles down very easily.”
She also advises avoiding a go-live date at the end of a financial year or key reporting time. “Go live at the end of the month. So if things don’t go according to plan, you have time to remedy them before your key reporting periods. These are the little things that, through our implementations, we have learned along the way.”
The listening partner
VisionFund will be applying these lessons as it continues to upgrade the platform in other countries, as well as adding AI capabilities and Data analytics. It represents the next chapter in a partnership that goes back 23 years and a story with scalability at its heart.
Over 23 years Temenos has proved to be a robust system that can grow with your strategy. It can take you to where you want to be. You can start as a small microfinance business, but then move into trade financing, treasury, and other banking areas. There are no limitations to what it can do.”
Jacinta Kamemba, Global Director of Digitization at VisionFund
This track record with Temenos points to a successful future for VisionFund, and not simply because of the technology, explains Jacintha. “Temenos is a very listening partner. They take time to understand our business, ideas and concerns, and are always available. We’ve come a long way with Temenos, and the journey continues.”