Proximity Finance

Agricultural Finance specialist places Musoni at the core of their digitalisation journey.

Background

Proximity Finance (Proximity), one of the largest MFIs in Myanmar with over 230,000 end customers and a portfolio of over $50 million, has chosen Musoni as its core banking and digitalisation partner. After training and data migration, PF successfully went live in March 2020. They are now looking to continue their digitalisation journey, improving efficiency and offering new channels to their end customers.

Getting started together

Training and implementation was managed with the support of ThitsaWorks, Musoni’s official partner in Myanmar. Within Proximity themselves, a dedicated team was established with representatives from each department. This ensured that the whole organisation was familiar with the expected changes and timing.

In particular, great care was taken to migrate all data from Proximity’s previous system into Musoni, with the goal of supporting long term farmer research. This also ensured that Proximity maintained all of the loan history and credit records on their clients, giving them a platform for future digitalisation projects. In total, the migration included over 220k clients, 600k loans, 150k savings accounts and 500k custom data points.

Musoni combines a world-class core banking system with a full suite of digital solutions. They have a deep understanding of the Myanmar microfinance sector and a strong local support team, making them the perfect digitalisation partner for Proximity as we look to leverage digital technology.

Hedvig Sundberg, Proximity Finance’s CEO

Immediate Impact

Unlike on Proximity’s previous system, where each branch was on a separate database, in Musoni all data in all branches is consolidated on a single database (hosted on the cloud). Data in the branches is reflected in real time on all reports in Head Office. This improves efficiency and speeds up decision making.

Proximity went live on Musoni in March 2020, just as the COVID-19 restrictions came into place. In the nine months since going live, with a full lockdown in Myanmar and all teams working from home, client numbers increased by 80,000, and the loan portfolio grew by 40% (demonstrating the benefits of a cloud based system).

Going Digital in under 12 months

At Musoni we help MFIs to achieve their digitalisation strategy quickly and affordably. After going live on Musoni in March, Proximity automated their loan decisions using credit checks in July, launched the digital field application to 400 loan officers in August, have integrated with the Myanmar CRB (MCIX), and also running a pilot with Ongo to digitalise cash repayments. So a full digitalisation, in the middle of a COVID year, in under 12 months.

Both Proximity and Musoni are working on the Mojaloop pilot, designed to make it easier to accept digital payments from clients across multiple channels. Together, these will enable Proximity to leverage digital technology to improve both the quality and availability of financial services to rural clients in Myanmar.

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