Star Knowledge MF Core Micro Finance Solution

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
© 2010 - Star Knowledge Technology Alliance Team, LLC
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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.
3

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.
© 2010 - Star Knowledge Technology Alliance Team, LLC 4
What is Micro Finance?
Financial opportunity shouldn’t be
limited to those with traditional
assets or credit stories that a bank
can 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

8
Micro Finance Universe
Providers * Products Customers
Banks
Finance Companies
NGOs
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.
9© 2010 - Star Knowledge Technology Alliance Team, LLC

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

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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
WAN
Auto Database Backup Process
Connects to Multiple
Applications, Multiple Database
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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
XML
Linux & C++ for integration with Hand Held Terminals
MF Core: Technical Environment

MF Core: Logical Model
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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

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Value Proposition: The Universe
End Customers
MFI 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 architecture
Easy and fast to develop new products and services
Supports banking operations across entities, time zones, languages and
currencies
Simple integration with legacy back-office systems
All-encompassing support for delivery channels including branch,
internet, call center, and mobile
Leverage existing systems for quick deployment and less redundancy
Empower non-technical end users to easily create reports and customize
templates

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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’Sullivan
Star Knowledge Technology Alliance Team, LLC
os@star-knowledge.org
Kalpesh V. Mehta
Star Knowledge Technology Alliance Team, LLC
kalpeshvm@star-knowledge.com

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MF Core – Screen Displays 1

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Star Knowledge MF Core Micro Finance Solution

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