The verdict in three sentences
A Malian microfinance institution managing 15,000 borrowers with spreadsheets and loan officers' notebooks discovers arrears too late: its PAR 30 is above 9%, well over the 5% threshold expected by the BCEAO and funders. Custom loan portfolio software, between 15,000,000 and 30,000,000 FCFA (about 23,000 to 46,000 EUR), handles repayment schedules, offline field collection, arrears alerts from day 1 and BCEAO reporting. Delivered in 18 weeks, it gives management the tools to bring PAR 30 under 5% within 12 to 18 months.
Why PAR 30 drifts
In most mid-sized MFIs in Bamako, Ségou or Sikasso, the loan officer collects repayments at the market or at home, writes them in a notebook and deposits cash at the branch at the end of the day. Entry into the core system happens 2 to 5 days later. As a result, a 3-day delay triggers no action and becomes a 30-day delay before anyone notices.
| Indicator (2026 order of magnitude) | Spreadsheets and notebooks | Portfolio software |
|---|---|---|
| Time to detect a late payment | 7 to 15 days | Day 1 (automatic alert) |
| PAR 30 | 9 to 12% | Target 4 to 5% |
| Cash vs system gap at month end | 1 to 3% of collections | Under 0.2% |
| Time to produce BCEAO reporting | 5 to 8 days | Under 1 day |
| Clients per loan officer | 250 to 300 | 350 to 400 |
| Annual loss rate on outstanding | 3 to 4% | 1.5 to 2% |
| Fraud and unremitted repayments | Hard to detect | Daily reconciliation |
With 15,000 borrowers and an average outstanding of 600,000 FCFA, the portfolio is about 9 billion FCFA (13.7 million EUR). At 9% PAR 30, more than 810,000,000 FCFA is at risk. Every point of loss avoided is worth 90,000,000 FCFA a year.
Modules and pricing
| Module | Function | Indicative budget excl. tax |
|---|---|---|
| Origination and appraisal | Client file, simple scoring, credit committee | 2,500,000 to 4,500,000 FCFA |
| Schedules and products | Individual, group, agricultural loans, grace periods | 2,500,000 to 5,000,000 FCFA |
| Offline field app | Collection, SMS receipt, sync when network returns | 3,000,000 to 6,000,000 FCFA |
| Alerts and recovery | Arrears at day 1, 7, 30, follow-up assignment | 1,500,000 to 3,000,000 FCFA |
| Mobile money collections | Orange Money and Moov Money, reconciliation | 2,000,000 to 4,000,000 FCFA |
| BCEAO reporting and accounting | Periodic MFI statements, prudential ratios, accounting export | 2,000,000 to 4,500,000 FCFA |
| Management dashboards | PAR by branch, officer and product | 1,500,000 to 3,000,000 FCFA |
The 15,000,000 FCFA core covers schedules, the field app, alerts and BCEAO reporting. The 30,000,000 FCFA version adds appraisal with an online committee, mobile money collections and detailed officer-level steering. Plan 8 to 12% of the budget per year for maintenance, hosting and support.
Compliance and the 18-week plan
MFIs in the WAMU fall under the law regulating decentralized financial systems and the BCEAO's instructions on reporting and prudential ratios. The software produces periodic statements in the expected format, keeps the full history of every loan and logs any schedule change. Personal data falls under Mali's 2013 data protection law and its authority, the APDP.
| Phase | Weeks | Deliverable |
|---|---|---|
| Scoping and portfolio audit | 1 to 3 | Products, rules, data quality |
| Mockups and product setup | 4 to 6 | Schedules approved by credit management |
| Back-office build | 7 to 11 | Origination, schedules, alerts |
| Offline field app | 12 to 14 | Tested in low-coverage areas |
| Portfolio migration and reporting | 15 to 16 | 15,000 files migrated, BCEAO statements |
| 2-branch pilot then rollout | 17 to 18 | Loan officers trained |
Mini case study
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Mr. Traoré, CEO of a microfinance institution in Bamako (15,000 borrowers, 9 branches, 45 loan officers), picks a 24,000,000 FCFA version. Within 15 months, PAR 30 falls from 9.4% to 5.2% and the loss rate from 3.5% to 2%, or 135,000,000 FCFA of losses avoided per year on 9 billion of outstanding. Productivity also absorbs 3,000 new borrowers without hiring 8 officers, about 19,000,000 FCFA of annual salaries. With 2,500,000 FCFA of yearly maintenance, the software pays for itself in under 3 months of avoided losses.
FAQ
Does the field app work without network?
Yes, the officer collects and prints or sends an SMS receipt even without coverage, and data syncs as soon as the network is back. It runs on entry-level Android phones costing around 60,000 FCFA.
Is BCEAO reporting generated automatically?
Yes, periodic statements and prudential ratios are produced from portfolio data. Production drops from 5 to 8 days to less than a day of review.
Can borrowers repay with Orange Money?
Yes, Orange Money or Moov Money repayments are matched automatically to the client's instalment. The module costs 2,000,000 to 4,000,000 FCFA depending on operators.
Why not buy an off-the-shelf banking system?
Core banking licences for MFIs often cost 25,000,000 to 60,000,000 FCFA, plus 15 to 20% in annual fees. Custom software covers your group and agricultural products exactly and you own it.
How are the 15,000 existing files migrated?
Spreadsheets are cleaned and imported in weeks 15 and 16, with outstanding balances checked per branch. Budget 1,000,000 to 2,500,000 FCFA depending on data quality.
Let's scope your project. Share your number of borrowers, your loan products and your current PAR 30: we will price a scope between 15,000,000 and 30,000,000 FCFA with an 18-week plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
