The verdict in three sentences
A microfinance institution with 38,000 members and 9 branches that rekeys its figures to produce BCEAO returns wastes time and carries compliance risk. Market core banking licences cost roughly USD 35,000 to 160,000, before configuration and annual maintenance, and remain heavy for an institution of this size. Custom software focused on loans, savings, offline field collection and a daily PAR 30 is often the better fit, provided the accounting scope is defined carefully.
The real issue: three sets of numbers that never match
Investors based in Singapore increasingly back microfinance in West Africa, and they all hit the same wall. Loans live in a legacy system, savings in another module, field officers' collections in paper books and accounting in a separate tool. The board sees the real PAR 30 at month end, after consolidation.
| Indicator | Current situation | Target with a unified platform |
|---|---|---|
| Gross loan portfolio | USD 11 million (6.5 billion FCFA), consolidated monthly | Updated with every repayment |
| PAR 30 | Calculated on the 5th of the next month | Daily dashboard per branch and per officer |
| Field collection | Paper books, keyed in at branch next day | Offline tablet, synced each evening |
| BCEAO returns | 6 to 8 days of work per quarter | Generated automatically, checked in 1 day |
| Savings vs ledger reconciliation | Frequent 0.2 to 0.5 % gaps | Entries posted at source |
| Loan applications | Paper file, 7 to 12 days to decision | Online workflow, 3 to 5 days |
PAR 30 (portfolio at risk over 30 days) is the first number regulators, lenders and impact investors look at. Tracking it daily means follow-up starts on day 1 of arrears, not day 31.
Market licence or custom build
| Criterion | Market core banking licence | Kolonell custom software |
|---|---|---|
| Acquisition cost | USD 35,000 to 160,000 depending on modules (2026 estimate) | 2,500,000 to 15,000,000+ FCFA (3,810 to 22,870+ EUR) depending on complexity |
| Annual maintenance | 15 to 22 % of the licence | 35,000 to 120,000 FCFA per month (53 to 183 EUR) |
| Field collection | Optional module, often online only | Offline tablet app within scope |
| Loan products | Configured by the vendor | Created by your team (group, individual, agricultural) |
| BCEAO reporting | Available, sometimes needs adapting | Built on your returns, checked with your auditor |
| Time to go live | 6 to 12 months | 4 to 7 months depending on migration |
The custom budget reads as follows: simple (loans, savings, members) 2,500,000 to 4,000,000 FCFA (3,810 to 6,100 EUR); mid-size (with field collection and PAR dashboard) 4,000,000 to 7,000,000 FCFA (6,100 to 10,670 EUR); complex (integrated accounting, regulatory returns, mobile money, multi-branch) 7,000,000 to 15,000,000+ FCFA (10,670 to 22,870+ EUR). Hosting, data migration and mobile money integration are defined in the quote.
Modules to prioritise
Members and KYC: member record with ID, photo, solidarity group and history. Search by phone number speeds up branch service.
Loans: schedule simulation, online credit committee, disbursement, repayments, penalties and rescheduling, with a full audit trail.
Savings: deposits, withdrawals, term savings and interest calculation, with configurable limits.
Field collection: officers record repayments on a tablet with no signal and print a Bluetooth receipt. The evening sync updates branch PAR.
Reporting: periodic returns for the BCEAO and the regional Banking Commission, prudential ratios and a board dashboard that a Singapore head office can read in English.
Mini case study
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Wei Ling, CFO of a Singapore microfinance holding, oversees its Lomé subsidiary with a USD 11 million portfolio and a PAR 30 of 6.8 %. With daily tracking and follow-up from day 1, the target is 4.5 % within 12 months. The 2.3 point drop covers USD 253,000 of loans that no longer slide into risk. With average provisioning of 40 %, the subsidiary avoids USD 101,200 in provisions. Quarterly BCEAO preparation also falls from 7 days to 1 day for two managers, freeing 48 working days a year for credit analysis.
What a Singapore head office should ask before signing
Three questions settle most of the decision. First, who owns the source code and the data model: with a custom build, the institution does, which matters if the holding later adds subsidiaries in Benin or Senegal under the same BCEAO framework. Second, how are returns validated: a parallel run of 1 to 2 quarters, checked by the local auditor, is the minimum. Third, what is the support model: a monthly maintenance plan covers fixes and small changes, while new modules are scoped and quoted one by one.
FAQ
Will regulators accept custom software?
What matters is reliable returns, an audit trail and segregation of duties. Every transaction is time-stamped and tied to a user, and your auditor signs off after 1 to 2 quarters of parallel running.
Does field collection work without a network?
Yes, the tablet app stores transactions locally for up to 3 days. Sync detects duplicates before updating accounts.
Can repayments come through mobile money?
Yes, integration is scoped in the quote according to the operators used in Togo. Equipped institutions typically see 20 to 35 % of repayments via mobile in year one.
How do we migrate 38,000 members without stopping operations?
Migration runs branch by branch, one weekend each. Balances are reconciled to the franc before Monday opening.
How long until a first live version?
Allow 4 to 7 months, including 1 to 2 months of parallel running with the old system to secure regulatory returns.
Let's scope your project. Share your loan products, branch network and reporting constraints, and we will propose a phased scope with a 4 to 7 month 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.
