The verdict in three sentences
A microfinance institution with 18,000 borrowers that computes PAR30 in separate files spots slippage weeks too late. Replacing everything with a core banking system costs 25,000,000 to 80,000,000 FCFA plus 15 to 20% maintenance a year, while a custom module plugged into the existing system costs 12,000,000 to 25,000,000 FCFA. If the goal is to bring PAR30 from 8% to 4%, the portfolio monitoring module is often the best first investment.
The real problem: PAR30 known too late
The head of credit at an MFI in Ouagadougou receives repayment schedules from the accounting system, field officer updates on WhatsApp and mobile money repayment reports in a third file. PAR30 is computed at month end, so a late payment on the 3rd is handled the following month. On a 4 billion FCFA portfolio, each point of PAR30 means 40 million FCFA of loans at risk. MFIs in Kenya, Uganda, Ghana or Nigeria describe the same pattern with M-Pesa or MTN MoMo repayments.
| Indicator | Current situation | Target with a dedicated tool (2026 order of magnitude) |
|---|---|---|
| PAR30 | 8% | 4% within 12 to 18 months |
| Time to detect a missed payment | 20 to 30 days | 1 to 2 days |
| Planned collection visits | Manual, per branch | Daily list per officer, ranked by risk |
| Regulatory reporting (BCEAO in WAEMU) | 4 to 6 days per quarter | 1 day, consolidated data |
| Portfolio per field officer | Not known in real time | Outstanding, arrears and disbursements per officer |
| Mobile money repayments | Reconciled by hand | Automatic matching by reference |
Core banking or custom module: the 2026 comparison
The two options solve different problems. Core banking replaces the accounting core and loan system. A custom module plugs into the current system and handles risk monitoring, field work and reporting.
| Criterion | Off-the-shelf core banking | Custom module |
|---|---|---|
| Initial cost | 25,000,000 to 80,000,000 FCFA | 12,000,000 to 25,000,000 FCFA |
| Annual maintenance | 15 to 20% of cost, i.e. 3.75 to 16 million FCFA | 10 to 15%, i.e. 1.2 to 3.75 million FCFA |
| Deployment time | 9 to 18 months, full migration | 4 to 6 months |
| Project risk | High: the whole ledger switches over | Moderate: the accounting core stays in place |
| Offline field officer app | Depends on vendor, often an add-on | Built for the field, 2G/3G sync |
| Regulatory reporting and prudential ratios | Standard, sometimes needs configuration | Matched to the supervisor's required returns |
| Mobile money integration | Variable | Orange Money, Moov Money, Wave, M-Pesa, MTN MoMo depending on country |
Core banking remains the right call if the current system is end of life or no longer meets the accounting framework for MFIs. Otherwise, starting with the monitoring module delivers results faster.
What the custom module contains
| Function | Detail | Estimated share of budget |
|---|---|---|
| Connector to existing system | Reads loans, schedules and repayments | 15% |
| Risk dashboard | PAR1, PAR30, PAR90 by branch, officer, product | 20% |
| Field officer mobile app | Visits, promises to pay, photos, offline | 25% |
| Reminder engine | SMS and calls scheduled at D+1, D+7, D+15 | 10% |
| Regulatory reporting | Quarterly returns and ratios for the supervisor | 15% |
| Security and audit | Roles, action log, backups | 15% |
Mini case study
Adama, head of credit at an MFI in Ouagadougou, manages 18,000 borrowers and a 4 billion FCFA portfolio with 8% PAR30. He chooses a custom module at 18,000,000 FCFA, plus 2,500,000 FCFA annual maintenance. Within 15 months PAR30 falls to 5%. If a third of PAR30 loans end up written off, each point gained avoids about 13 million FCFA of losses, close to 40 million FCFA for 3 points. The module pays for itself in under a year.
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FAQ
What budget for loan portfolio software in 2026?
A custom module costs 12,000,000 to 25,000,000 FCFA for an MFI with 10,000 to 25,000 borrowers. A full core banking system costs 25 to 80 million FCFA before maintenance.
Does the module work offline?
Yes, the field officer app records visits offline and syncs as soon as a 2G or 3G network is available. A sync is usually under 200 KB.
Can regulatory returns be produced automatically?
Quarterly returns and prudential ratios are generated from consolidated data. Production drops from 4 to 6 days to about 1 day.
How long before PAR30 goes down?
First effects show after 3 to 4 months. Going from 8% to 4% usually takes 12 to 18 months with consistent collection discipline.
What if we change core banking later?
The module is built with an isolated connector: in a migration, only the connector is rewritten, about 10 to 15% of the initial budget.
Let's scope your project. Tell us your borrower count, current system and PAR30 targets, and we will scope the module, the FCFA budget and the rollout 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.
