Management Sciences for Health

  • Microfinance Information System Consultant

    Job ID
    # of Positions
    A406 - Rwanda RHSSA
    Reports To
    Health Sector Staff Mutual Assistance Group (HSS-MAG)
  • Overview

    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.

    Statement of Work (SOW)

    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:

    • Software customization/adaptation of system to MAG requirements described in the TOR below
    • Configuration and testing of software on agreed upon hosting platform
    • Data conversion and import of existing member data into system
    • Preparation of user guides for each type of user
    • Training of system administrators and MAG officers
    • Provision of system maintenance and support as long as the system is used (annual support)
    • Hosting of system on an agreed upon hosting platform


    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.

    Terms of Reference (TOR)

    1.  Introduction and system overview

    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:

    • MAG System Administrator
    • MAG Officer
    • Health facility MAG focal point
    • Member


    Specific Responsibilities

    2.  Best banking practices supported by system

    The system must support key business practices of the HSS-MAG.  For example:

    • Collection of monthly member contributions to individual savings accounts through payroll
    • Variable cash flow lending
    • Rapid follow-up on delinquency
    • Small, frequent repayment installments collected centrally through payroll deduction or individual payments
    • Links between savings and loans programs that determine a member’s eligibility for different types of loan products
    • eBanking and Mobile banking services accessible directly by members and HSS-MAG staff


    3.  Common system functionality

    The system must support the following common functions:

    • All account number entry fields to incorporate check-digit algorithms to avoid miskeying
    • Automatic assignment of account numbers
    • Identification of accounts by health institution where member joined
    • Each health institution must may have a maximum of 1000 accounts
    • User friendly common graphical interface design standards, such as:
      • Editable drop-down menus
      • Type-ahead field completion
    • Context-sensitive help system
    • Ad hoc reporting capabilities enabling MAG officers to query the system using SQL or similar query syntax and export data to Excel for analysis.
    • Multi-language support in English and Kinyarwanda for selected member self-service functions – most of these need to be supported on mobile as well as web platforms.


    4.  Accounting system functionality

    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:

    • Member account number
    • Date
    • Name of HSS-MAG partner institution (HFx, RBC, MoH, etc)

    Reference and entry label, (contribution, loan repayment, etc…..)

    • Counterpart account code(s)
    • Debit amount
    • Credit amount and
    • Balance and type (debit or credit)

    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

    Month-end/year-end balances

    Bank reconciliation by week, month, and ad hoc

    Suspense account management


    5.  Portfolio management functionality                              

    The following functions must be supported by the loan system for managing individual loans:

    • Loan types: currently only 2 loan types are supported, but these will increase as the HSS-MAG continues to grow:
    • Ordinary loan: An ordinary loan is granted upon approval by HSS-MAG BoD. Requests must reach HSS-MAG not later than the 15th day of the month. The maximum amount is determined by the following formula: Ordinary Loan = individual savings x 2. This loan is payable in max. 3 years, at an annual interest rate of 3%.
    • An ordinary loan plus is granted upon approval by HSS-MAG BoD. Requests must reach HSS-MAG not later than the 15th day of the month. The loan can be more than individual savings x 2 amount, but requires a minimum of one (1) and a maximum of three (3) guarantors. Guarantors’ amounts are multiplied by 1. This loan is payable within 3 years, at an annual interest rate of 3%
    • Urgent loans: An urgent loan is a loan granted to a member under special circumstances like school fees, illness, fire, accident, etc. The maximum amount for that loan is Frw200,000, payable in 3 months at a flat rate fee of 5%, payable in advance.
    • Loan application: users can complete these on-line or print out a loan application to be filled out manually and submitted to their HSS-MAG sub-committee (see format attached in annex)
    • Reporting on pending clients, by account officer should include the following data fields
    • Text memo capability
    • Automatic loan number generation
    • Loan cycle number
    • Deductions (document stamping fees, notarization, etc.)
    • Guarantor details
    • Links to savings module of system so that loan eligibility and maximum amount can be verified when applying for a new loan.
    • Disbursement policies: Ordinary and urgent loans can be disbursed in a single payment through check or electronic bank transfer.  Urgent loans may also be paid by mobile money.
    • Monthly collection of loan repayments is currently through payroll deduction
    • Interest calculation methods: Interest rates are currently calculated annually with no compounding, however, the system should permit interest to be compounded monthly or weekly for future.
    • Penalty calculation method: an additional fee of 4% will be charged for arrears. For ordinary loan, total interest rate will be 3%+4%=7%, and urgent loan will be 5%+4%=9% to be applied to the amount of arrears multiplied by the number of days past due divided by 365. Penalty calculation will apply only after 30 days late payment but thereafter, the 30 days will also be included in penalties calculations.
    • Fee calculation methods: fees can be calculated either as a fixed amount per loan or a variable percent origination fee.
    • Repayment scheduling: The system will automatically prepare a repayment schedule based upon the loan type, principal and interest over the term of the loan.
    • Early repayments: If the member requests to make early repayments, they may do so at any time by paying off the entire balance or any portion thereof. If a loan is fully paid off early, no interest will be charged on the amount paid.  If a balance remains, interest will only be charged on the balance.
    • Loan repayment and loan history: The system will maintain the history of all loans and repayment history for audit and credit assessment purposes.
    • Restructuring and write-off procedures: Loans can be restructured once during the life of a loan at the request of the member in order to reduce or increase interest monthly payments and adjust the term accordingly. The maximum term of a loan can never exceed 5 years.  Once a year, the HSS-MAG board will review delinquent loans and determine strategies to recover the amount due.
    • Loan write-off recuperation: If a loan has been written off, but a member agrees to continue payments then the loan can be restructured.


    6.  Deposit-tracking system functionality

    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:


    • Displays client’s transaction history
    • Automatic withholding tax calculations
    • Automatic computation of:
      • Average daily balance
      • Fees and charges (linked to “Fees and Charges” module)
      • Account charges
      • Limits on minimum funds in accounts
    • Start-of-day processing
      • Security sign-on
      • Posting of previous day’s end-of-day report
      • New accounts

    -  Open new accounts

    -  Process customer inquiries

    -  Automatic debit memo/credit memo issuance

    -  Bill payment or issuance

    • Back office transactions
      • View/edit accounts
      • Monitor accounts
      • Setup/deletion of stop payment order
      • Setup/lift of hold, garnish, or earmark
      • Back-date transactions (for backup restoration; linked to audit trail)
      • Override for error correction without machine validation
      • Branch summary inquiry
      • Branch parameter setup
      • File maintenance
      • Report printing
    • End-of-day processing

    -  Computation of daily average balance

    -  Interest computation

    -  Automatic account number assignment

    -  Dormant account charges

    -  Service charges


    7.  Dividend Management:

    The system must support the calculation and payment of dividends to members on a quarterly or annual basis.  This includes:

    • Estimation of overall annual profits (net income after payment of operating expenses) that can be considered for disbursement as dividends. The HSS-MAG Board of Directors will determine the actual amount to be shared.
    • Payment of individual dividends as directed by members (reinvested or paid out to member) based upon their invested share value.

    8.  Charges and fees module:

    The system must support the configuration of rules for the application of charges, including:


    • Charges are applied at the time a function is carried out or a transaction occurs, however balance queries can be done at any time without charge.
      • Fees can be automatically charged for balances below certain minimum
      • Setup fees for loans
      • Administrative and stamping charges
      • Insurance fees
      • Account handling fees
    • All charges and fees are to be administered from one source the MAG officers at national level and changes to any charges and fees should be easily accomplished without any programming changes to the
    • Fees and services should be adjustable at the individual account level by an authorized

    9.  Interoperability with other bank systems

    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).:

    • The system must support two modes of data transfers:
    • Full software integration with realtime transfers
    • Batch transfers (network or distributed media)
    • Required common data formats for batch transfers can be csv, xml or json
    • Contingency procedures must be in place for unsuccessful data transfers, such as transaction roll-back or restoration procedures for incomplete data transfers
    • System security
      • Firewall protection for file servers
      • SSL Encryption
      • Password protection schemes
      • Transfer authorization
      • Server protected by anti-virus software


    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.


    10.  Interfaces/Delivery Mechanisms

    All access to the system will be through one of the following interfaces:

    • Internet: Computer desktop web-browser interface over the internet
    • Mobile phone access via:
      • USSD – for account balance, contribution, loan balance enquiries
      • SmartPhone (Android or IOS) for member self-service functions
    • SMS – The system must enable the configuration and delivery of rule-based SMS alerts and manually initiated broadcast messages to individual members or groups of members.

    11.  Report generation module(s)

    General ledger reports:

    • Single and multifacility reporting
    • Daily reports
      • Journal transaction list
      • Trial balance
      • Balance sheet and income statement (ad hoc)
      • Consolidated daily status report
    • Monthly reports
      • Trial balance
      • Cash flow statement
      • Income statement
      • Subsidiary ledger statement
      • Balance sheet
    • Internal control reports
      • Miscellaneous cash out/cash in
      • Prepaid accounts
      • Outstanding cheques
      • Bills purchased schedule
      • Withholding tax remittances
      • Documentary stamp remittances
    • Central Bank reports as required by BNR


    • Portfolio management system reports:
      • Daily collection reports
      • Daily loan release reporting
      • Monthly loan release reporting
      • Installment-due reporting
      • Active loans by account officer
      • Daily repayment report by account officer
      • Outstanding loan portfolio by account officer
      • Summary of new loans and deposits for the period
      • Repayment rate by business sector
      • On-time repayment rate
      • Loan cycle and historical loan profile, by account officer
      • Loan portfolio concentration report
      • Loan profile by gender
      • Loan profile by age
      • Loan profile by type of health worker
      • Listing of loans by purpose
      • Loan interest rate and maturity matching
      • Total interest and fees collected


    Delinquency management reports:

    • Portfolio-at-risk
    • By type of health institution
    • By loan size
    • By gender
    • By employee type
    • Summary delinquency report
    • Delinquent loans by branch and product and account officer
    • Portfolio-at-risk aging report
    • Total doubtful and written-off accounts
    • Loan loss rate


    Deposit system reports:

    • List of deposit accounts opened
    • New deposit accounts within a period
    • Active accounts
    • Statement of account, monthly and on demand
    • Accounts by deposit size
    • Savings concentration report
    • Summary of daily transactions
    • Dormant accounts
    • Upcoming maturing time deposits
    • Time deposits by interest rate category
    • Time deposit by size and term
    • Time deposits by balance
    • Time deposit expiries
    • Time deposit interest accrual report
    • Schedule of monthly terminated certificates of time deposit

    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.

    12. Performance dashboards

    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:

    • National MAG officers will see the performance of all health institutions
    • Health Institution focal points will see indicators related to their institutions only
    • Members will see key data about their own accounts such as balance, % contributions, loans outstanding, and transaction history


    13.  System and access security

    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:

    • MAG officer
    • Health Institution Focal Point (HR or Accountant)
    • Technical systems administrator
    • Ordinary member

    System backup: To be able to support 3 level backup (full system)

    • On premise
    • In cloud
    • Disaster Recovery (DR)


    Audit trail capability for all data entries, with the following data for each entry:

    • Time
    • Date
    • Transaction
    • Operator
    • Client details
    • Transaction type
    • Value of field before and after transaction
    • Supervisor identification number (for override transactions)
    • Type of device used and geolocation


    Audit trails are required for:

    • All financial transactions
    • Client account adjustments
    • Client account functions
    • Approvals registered on the system
    • System configuration changes (e.g. changing loan interest rate parameters, fees, etc..)


    14.  Software and hardware

    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.


    15.  Financial product design module

    System should allow the user to define the following attributes for all products:

    • First and last open dates
    • General ledger account numbers
    • Basis and frequency of interest accrual and posting calculation
    • Minimum and maximum transaction and balance values
    • Charges and fees (linked to Charges and Fees module)

    System should also allow the user to define the following attributes for specific products:

    • Term range
    • Pretermination rate for deposits and special savings
    • Selection of when loan interest is collected (with repayment or at loan disbursement


    System should also permit various types of interest rates to be applied from within this module:

    • Tiered
    • Fixed
    • Variable
    • Penalty
    • Promotional
    • Flat

    16.  Formula library

    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:

    • Straight-line quarterly repayments
    • Straight-line monthly repayment


    Qualifications and Experience

    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




    Background Information

    Management Sciences for Health (MSH), a global health nonprofit organization, uses proven approaches developed over 40 years to help leaders, health managers, and communities in developing nations build stronger health systems for greater health impact. We work to save lives by closing the gap between knowledge and action in public health. Since its founding in 1971, MSH has worked in over 150 countries with policy makers, health professionals, and health care consumers to improve the quality, availability and affordability of health services. Working with governments, donors, non governmental organizations, the private sector, and health agencies, MSH responds to priority health problems such as HIV & AIDS; tuberculosis; malaria; maternal, newborn and child health; family planning and reproductive health; and chronic non-communicable diseases such as cancer, diabetes, and lung and heart disease. Through strengthening capacity, investing in health systems innovation, building the evidence base, and advocating for sound public health policy, MSH is committed to making a lasting difference in global health.

    EEO Statement

    Management Sciences for Health is an equal opportunity employer offering employment without regard to race, color, religion, gender, sexual orientation, gender identity, age, national origin, citizenship, physical or mental disability, or veteran status.

    Reports To

    Health Sector Staff Mutual Assistance Group (HSS-MAG)
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