The verdict in three sentences
A microfinance institution does not die from a lack of clients but from excess arrears. Simple credit scoring, automatic mobile money reminders and a PAR dashboard bring PAR 30 from 10-20 % down to under 5 %. For 3,000,000 to 7,000,000 FCFA, the tool pays for itself on loan-loss reduction alone.
PAR, the survival metric
PAR (Portfolio at Risk) measures the share of the portfolio in arrears. Every PAR point above target is capital that no longer works. Scoring avoids bad loans upstream; reminders recover those that slip.
| Indicator | Without tool | With the app (2026) |
|---|---|---|
| PAR 30 | 10-20 % | < 5 % |
| Arrears after auto reminder | baseline | -30 % |
| Loan-file processing time | 1-3 days | a few hours |
| Delay-detection time | manual | automatic D+1 |
| Instalment tracking | paper/Excel | live dashboard |
| Repayment traceability | partial | mobile money receipt |
What the app costs
Budget depends on scoring, mobile money integration and the number of loan officers. 2026 ranges.
| Item | 2026 range (FCFA) | Detail |
|---|---|---|
| Scoring + repayment app | 3,000,000 - 5,000,000 | files, schedules |
| Mobile money reminder module | +700,000 - 1,300,000 | auto reminders, receipts |
| PAR dashboard + reporting | +500,000 - 900,000 | live indicators |
| Loan-officer training | 250,000 - 500,000 | field |
| Annual maintenance | 400,000 - 800,000/yr | support |
| Portfolio managed | 50 - 500 M | by MFI |
Mini case study
An MFI in Dakar manages a 200,000,000 FCFA portfolio with a PAR 30 of 15 %, i.e. 30,000,000 FCFA at risk. Assuming a final loss of 30 % on those at-risk loans, that is 9,000,000 FCFA of probable losses. With scoring and reminders, PAR falls to 4.5 %, i.e. 9,000,000 FCFA at risk and about 2,700,000 FCFA of losses: an annual saving of roughly 6,300,000 FCFA. The app at 5,000,000 FCFA pays back in under a year.
FAQ
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Is scoring suitable for a small MFI?
Yes. Simple scoring based on income, history and collateral is enough to sort files. It cuts doubtful loans upstream, where PAR is created, without requiring a complex model.
How does the mobile money reminder work?
As the due date approaches, the borrower receives an SMS or WhatsApp reminder with the amount and a Wave/Orange Money payment link. This automatic reminder cuts arrears by about 30 %.
Is the PAR dashboard real time?
Yes, PAR 30, 60, 90 recalculates on every repayment. The director immediately sees which branches or officers have a deteriorating portfolio.
Can it manage several branches?
Yes, each branch has its own portfolio and officers, with consolidated reporting for management and loan tickets from 50,000 to 2,000,000 FCFA.
Are interest rates configurable?
Yes, the app handles rates from 1.5 to 3.5 %/month, different loan products and automatic schedules with a receipt on each payment.
Let's talk about your project. We equip your MFI to lower PAR and secure repayments. 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.
