The Rwandan Ministry of Health has established a micro-finance scheme or ‘Ikimina’ for the health workforce called the Health Sector Staff Mutual Assistance Group (HSS-MAG). This is a voluntary savings and loan program introduced as a staff retention measure by providing members with access to affordable credit. By April 2018 over 11,000 people (nearly 70% of eligible staff) had joined the group. Given the large number of transactions to be managed (monthly contributions from each member and a growing portfolio of loans to process and recover), the HSS-MAG can no longer manage this scheme using paper system.
The HSS-MAG needs a strong technology platform to support key functions including: membership management (who has contributed how much, what is each person’s monthly contribution), loan management (what loans are outstanding to whom, who are their guarantors), accounting and portfolio and dividend management. Members should be able to check their savings investments and loan balances on line and apply for loans on-line or using mobile phones. In addition, the HSS-MAG management should be able to check the status of the investment and saving pool and loan portfolio by type of loan at any time – and prepare a wide range of reports for the Board of Directors.
Management Sciences for Health, Inc (MSH) is soliciting bids for a microfinance information system on behalf of the HSS-MAG, a not-for-profit savings and loan cooperative managed by staff from the health sector. At the current time the HSS-MAG has nearly 12,000 members working in about 700 health institutions.
The selected bidder will provide the following services to the HSS-MAG in order to adapt and implement a microfinance information management system for this savings and loan scheme.
The selected contractor shall provide the following services:
The system should have a robust application program interface (API) to enable interoperability with other information systems (e.g.IPPIS payroll) and should enable the system administrator to configure and customize most system settings without vendor support. The system should also have schedule of upgrade and maintenance releases that can be implemented easily.
In order to be considered, bidders are required to have a permanent local representative based in Rwanda to provide on-going support for the system. This could be through a third-party if the company is not based in Rwanda.
The HSS-MAG, established in October 2017 by Health Sector staff from many health institutions has grown to over 12,000 members who have contributed over 300 million Rwandan Francs by July 2018. Contributions are deducted at source from payroll contributions that represent a variable percentage of each employee’s base salary. The funds are all pooled in a single bank account, from which investments are made or a variety of loan products are offered to members in order to earn interest (see attached HSS-MAG documentation for more information about the scheme).
The system must support different user roles and have a member self-service portal that will enable MAG members to initiate selected tasks. The required user roles include at least the following:
The system must support key business practices of the HSS-MAG. For example:
The system must support the following common functions:
The accounting system must be fully integrated with the other modules of the system so that transactions posted, for example,. in loan management flow automatically into relevant accounts modules. The system shall be able to record transactions, record adjusting entries, and prepare financial statements.
Specifications of the accounting system:
Financial tools and statements (Chart of accounts, General Ledger, Journal, profit and loss account, Balance Sheet, etc)
Number of health institutions (branches): 1000
Number of journals
Transaction recording details must include:
Reference and entry label, (contribution, loan repayment, etc…..)
Single currency: Rwandan Franc
Full audit trail capabilities
Automatic recovery in the event of a system crash
Automatic calculation of
Average daily balance
Monthly depreciation and amortization expense
Starting balances for new fiscal year
Accruals for month-end entries on a per account basis
Provisions for income tax and other mandatory payments
Bank reconciliation by week, month, and ad hoc
Suspense account management
The following functions must be supported by the loan system for managing individual loans:
Consolidated deposits will be made by the HR officer, or other health institution focal points, at the end of each pay period. The deposit detail will uniquely identify the amount paid by each member, so that individual payments can be tracked by member. Deposits may be directly recorded within the system by member, or imported from an Excel spreadsheet or from a data export from iPPIS using their National ID or member number.
This module must be fully integrated with the GL and Portfolio modules and support the following standard functionality:
- Open new accounts
- Process customer inquiries
- Automatic debit memo/credit memo issuance
- Bill payment or issuance
- Computation of daily average balance
- Interest computation
- Automatic account number assignment
- Dormant account charges
- Service charges
The system must support the calculation and payment of dividends to members on a quarterly or annual basis. This includes:
System architecture must have a web API that conforms to industry interoperability standards that will enable transfer of data with the HSS-MAG’s selected bank (currently Banque Populaire).:
Redundancy and operational reliability: the system must have 99.23% reliability and redundancy for the system to fail over to a backup system in case of hardware failure.
Data should be replicated incrementally to a backup server, off-site from the production data center.
All access to the system will be through one of the following interfaces:
General ledger reports:
Delinquency management reports:
Deposit system reports:
In addition, the system should provide the ability for user to create ad hoc reports, preferably using a standard report writer (e.g. JasperStudio or Crystal Reports), without programming changes.
The system must have configurable dashboards with infographics and charts tracking key performance indicators displayed on the home page for all members to see. Depending upon the user role, dashboard content will change:
The system must have role-based multilevel password functionality (Two way Authentication), able to support National Public Key Infrastructure (PKI) for the following organizational roles:
System backup: To be able to support 3 level backup (full system)
Audit trail capability for all data entries, with the following data for each entry:
Audit trails are required for:
The system must be a web services model hosted in a tier 2 or above data center, preferably on virtual servers that can be upgraded remotely through software configuration as the HSS-MAG’s membership increases. No installation should be required on user computers or phones and no data stored locally.
An offline module is desirable for supporting key functions especially in remote areas such as registration and loan applications. This could be supported on a smartphone or tablet.
The system must have a user-friendly interface with simple work flows for supporting key tasks (request a loan, change contribution, reschedule a loan, etc…)
The system must be configured to synchronize the database for backup purposes with an off-site server hosted at the Ministryof Health (or other location specified by HSS-MAG) for disaster recovery.
Before handing over the system, the supplier must perform a vulnerability assessment and penetration test of the application and provide: a technical report outlining all vulnerability found and how fix them and a managerial report outlining potential risks and how to mitigate in the future.
System should allow the user to define the following attributes for all products:
System should also allow the user to define the following attributes for specific products:
System should also permit various types of interest rates to be applied from within this module:
The system should have a configurable formula library with detailed descriptions of unique mathematical relationships used in the design of banking products.
The user should be able to add new formulas to the library without the need for programmer intervention and then be able to use the formulas in product design and (later) in operations. The formulas should be predefined at the time of the system delivery and include for example:
The following are the criteria that will be used in evaluating proposals.
Quality of technical approach
Proposed implementation schedule
Conformity of proposed software solution to requirements spelled out in the TOR
Past performance and references from similar customers
Qualifications/Experience of key staff proposed to implement the project
Cost and business model for software licensing and support