The verdict in three sentences
For an MFI with 9,000 borrowers in Ouagadougou, replacing the whole system with an off-the-shelf core banking platform (licence of 15 to 40 million FCFA, about 23,000 to 61,000 EUR) only makes sense if your current software no longer produces reliable BCEAO reporting. If accounting holds up, a custom origination and collections layer (10 to 25 million FCFA) plugged into the existing system delivers most of the gain. The lever that pays for the project is a lower PAR30, from 9% to 5% as a 2026 order of magnitude, driven by scoring and automated reminders.
Where money leaks in the loan cycle
In a typical Burkinabe MFI, the loan officer builds the file on paper, the committee meets once a week and collections rely on manual calls. Every slow step raises risk.
| Step | Common practice | With a dedicated module | Measured effect |
|---|---|---|---|
| Application intake | Paper file, 2 to 3 visits | Offline tablet form, photos of documents | Complete file in 1 visit |
| Analysis and scoring | Officer judgement only | Score based on history, activity and Mobile Money | Better-targeted rejections |
| Credit committee | Weekly, in person | Online approval by delegation level | Disbursement time from 12 to 4 days |
| Disbursement | Cash at the branch | Orange Money or Moov Money | Fewer trips, full traceability |
| Repayment reminders | None or ad hoc calls | SMS at D-3 and D0, voice reminder in Moore or Dioula | Fewer arrears under 30 days |
| Collections | Excel list per officer | Priority queue by days late and amount | PAR30 from 9% toward 5% |
Off-the-shelf core banking or custom layer
| Criterion | Off-the-shelf core banking | Custom origination and collections module |
|---|---|---|
| Upfront cost | 15 to 40 million FCFA licence + 5 to 12 million FCFA deployment | 10 to 25 million FCFA |
| Annual maintenance | 15 to 22% of the licence | 1.5 to 3.5 million FCFA |
| Timeline | 8 to 14 months with migration | 4 to 6 months |
| BCEAO reporting (SFD statements, prudential ratios) | Included, configured for WAEMU | Stays in your current system or dedicated export |
| Offline field app | Often a paid option | Designed for your officers and areas |
| Mobile Money integration | Varies by vendor | Native Orange Money and Moov Money |
| Project risk | Full migration of the loan book | Limited, the existing system keeps running |
The rule of thumb: if your month-end statements to the Banking Commission and the BCEAO need more than 5 days of manual rework, the problem lies in the core and core banking is the answer. Otherwise, invest first where PAR is deteriorating.
Regulatory and security requirements
Decentralised financial systems in WAEMU must produce periodic statements, meet prudential ratios and report loans to the credit information bureau. The module must log every credit decision, separate rights between officer, branch manager and committee, and back up data in Burkina Faso or in a compliant data centre. Plan a degraded mode too: in rural areas the connection drops for hours each day.
Mini case study
Mr Ouedraogo runs an MFI in Ouagadougou: 9,000 borrowers and a 3.6 billion FCFA loan book. With PAR30 at 9%, 324 million FCFA is at risk. Bringing PAR30 down to 5% cuts the at-risk portfolio by 144 million FCFA. If 25% of that would have become a loss, savings reach 36 million FCFA a year (about 55,000 EUR), before counting released provisions. The custom module at 18 million FCFA plus 2.5 million FCFA of maintenance pays back in under 8 months. A full core banking system at 30 million FCFA licence plus 8 million deployment would have paid back in 13 months, after a 10-month project.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
How much does microfinance software cost in Burkina Faso in 2026?
Off-the-shelf core banking costs 15 to 40 million FCFA in licence fees, plus 5 to 12 million FCFA for deployment. A custom origination and collections module ranges from 10 to 25 million FCFA.
Does the software produce BCEAO reporting?
Core banking systems built for WAEMU generate SFD statements and prudential ratios. A custom module relies on your existing accounting system or adds a dedicated export for 1 to 3 million FCFA.
How does scoring reduce PAR30?
It combines repayment history, borrower activity and Mobile Money flows to adjust amount and term. Paired with SMS reminders, it brings PAR30 from 9% to about 5% over 12 months.
Can loan officers work without a network?
Yes, the field app records files offline and syncs as soon as the network returns. An entry-level tablet at 90,000 FCFA is enough.
How long does a custom module take?
Allow 4 to 6 months, including a 6-week pilot in one or two branches before full rollout.
Let's scope your project. We define your scope (origination, scoring, collections, Mobile Money, reporting), an indicative budget in FCFA and a one-branch pilot. 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.
