Development of CRM for microfinance organizations

The business related to microloans always works at high speed: while one repays the debt, another extends the loan, and the third delays the payment. Everything must be under control here, because a successful microfinance company is not the one that issues the most loans, but the one that knows how to effectively manage data, build long-term relationships with clients and minimize risks.

CRM for microfinance organizations is a key tool that combines all processes into a single, manageable and transparent system. This digital ecosystem helps to make quick and informed decisions, automate routine and increase customer loyalty.

AVADA MEDIA offers CRM system development services for microfinance organizations. Thanks to its own program, you will manage your business not through endless calls, tables and manual reconciliations, but with a smart system that automates routine tasks and allows you to manage data.

CRM for a microfinance organization is a customer relationship management system adapted to the tasks and processes of microlending firms, pawnshops, and credit bureaus. This program covers all processes: from the first contact with the client to the full repayment of the loan or transfer of the case to collectors. It collects and analyzes data, helps automate checks, generates reports, manages marketing campaigns, and even supports integration with external services – for example, state registries, credit history systems, and payment gateways.

Unlike universal CRMs, individually developed solutions take into account the specifics of the microlending industry: from borrower scoring and solvency assessment to automatic control of payment schedules, interaction with collectors, and compliance with regulatory requirements.

Managing microfinance institutions requires maximum flexibility and transparency, a balance between application processing speed and risk management. Such organizations regularly face problems that a custom CRM for MFIs can solve.

High workload on staff

Manual processing of applications, calls, payments, contract extensions takes a lot of time, effort, and attention. A microfinance organization management program helps to relieve employees by automating applications, reminders, and notifications.

Insufficient control over processes

Without a unified system, data is scattered across departments. A CRM system for MFIs combines all information in a single interface, providing management with a complete picture of the state of the business.

Risk management

Assessing the solvency of clients is a critical stage in the work of microfinance organizations. CRM integration with external databases (credit bureaus, state registers, scoring systems) allows for faster and more accurate decisions on granting loans.

Compliance with regulatory requirements

Microcredit organizations are required to store and process personal data of clients in accordance with the law, submit reports on time, and record financial transactions. CRM for MFIs simplifies the implementation of these tasks thanks to built-in regulations and templates.

High customer turnover

Competition in the microloan market is growing rapidly, and customer retention is a separate task. Tools for automatic SMS and email mailings, accrual of bonuses for repeated loans can be implemented in an individual program.

Quick decision-making

When a client urgently needs money, even an extra 15 minutes of waiting can cost you the deal. CRM system for microfinance organizations eliminates delays by processing applications automatically, distributing tasks between managers, issuing reminders and notifications, and updating history.

The program for MFIs allows you to remove the human factor from routine tasks, speed up application processing, and reduce operating costs. It synchronizes the work of all departments – from customer service to security.

Each type of microfinance business has its own specifics, and therefore different tasks that CRM must solve. Depending on the direction, custom unique functions are implemented in the system.

CRM for microcredit companies (microloans, microcredits)

Microfinance organizations that issue short-term loans require rapid decision-making and minimizing the risk of non-repayment. CRM for microloans includes tools that automate the process of client assessment and loan management:

• automatic scoring of clients based on credit histories, internal assessment rules;
• integration with payment systems for instant payments (e.g. LiqPay), auto-generation of QR codes for bill payment;
• automatic generation and processing of applications from the website, mobile application, call center;
• management of payment schedules, overdue payments, automatic reminders to clients via SMS, email, push;
• debt control, the ability to transfer cases to collection agencies via CRM;
• analytics by engagement channels, manager efficiency, percentage of return and non-return;
• automatic distribution of applications between managers according to specified criteria (geography, amount, source of application);
• integration with electronic signatures for contactless signing of contracts;
• setting up flexible rules for making decisions on issuing a loan – for example, rejecting applications if the client has more than two overdue payments in the last year.

CRM for pawnshops

Pawnshops handle valuable collateral and require strict accounting of each object, control of storage periods, and transparent sale of unclaimed collateral. The pawnshop program covers the entire cycle of working with collateral:

• accounting of collateral with linking photos, descriptions, estimates, movement history (acceptance, return, sale);
• search for an item by barcode, serial number or other parameters;
• management of storage periods, calculation of interest, automatic notifications of customers about redemption periods via SMS/email/push;
• integration with an online store or a site for selling unclaimed items;
• control of warehouse balances, generation of reports for each object, automation of printing labels/barcodes;
• integration with fiscal registrars and accounting programs;
• automatic printing of checks and integration with fiscal registrars;
• formation of financial reporting on revenue, margin of goods sold, for each branch, manager, area of ​​activity.

CRM for credit unions

Credit cooperatives work with long-term loans and a complex membership structure, so CRM for a credit organization of this type includes blocks for managing not only finances, but also interaction with shareholders:

• accounting of shareholders, their personal data, history of membership fees, credit load, participation history;
• management of the issuance and repayment of loans with the construction of individual payment schedules;
• automatic notifications about payments, debts;
• module for organizing and accounting for meetings, voting, working with applications;
• reports on financial indicators, loan portfolio management, forecasting needs in reserve funds;
• status management – new, current, blocked, excluded;
• mailing of notifications about meetings, changes in rules, voting results;
• integration with accounting programs 1C, BAS, SAP;
• formation of mandatory reporting for regulatory authorities.

CRM for online MFIs and fintech startups

Online microfinance organizations and fintech startups operate in a digital environment where speed of application processing, high level of automation and customer convenience are critically important. CRM for online MFIs is built around digital service channels and integration with external services:

• automatic customer scoring based on data from external sources (BKI, social networks, digital profiles);
• instant approval and loan issuance completely online without a visit to the office and automatic sending of money to the client’s card via bank APIs;
• integration with electronic signatures, APIs of state registries for data verification,
• identity identification platforms (BankID, Diya, KYC providers);
• management of omnichannel communications with customers (chat bots, messengers, email, push);
• adaptive dashboards for monitoring key metrics in real time;
• A/B testing tools for offers and credit terms for flexible product customization;
• automation of anti-fraud control, monitoring of suspicious transactions;
• integration with loan issuance platforms via mobile applications;
• automatic trigger mailings (for example, “leave an application right now – interest discount”);
• setting automatic limits by geography, age, and type of clients.

With us, you will receive a unique CRM system for a microfinance organization of any type, maximally adapted to the specifics of your business, which will provide flexibility, scalability, and full integration with the existing ecosystem.

For microfinance organizations, data security is not just a requirement, but the basis of customer trust and compliance with legislation. In individual CRM systems, we implement a complex of multi-level protection measures:

• server-based data encryption with modern algorithms (for example, AES-256), protects both the information flow and static data;
• a two-factor authentication (2FA) system for all users of the CRM system for microfinance organizations reduces the risk of unauthorized access even in the event of a password compromise;
• delimitation of access rights reduces the risk of accidental or intentional information leaks, since employees see only those data and functions that are necessary for their work;
• audit logs and activity logs for tracking suspicious activity or restoring the course of events;
• scheduled data backup with storage of backups on isolated servers ensures quick recovery in case of failures.

Security in CRM for microfinance organizations is an important part of the strategy that encompasses technological and legal components.

Developing an individual CRM system for a microfinance organization is a multi-stage process that requires deep expertise and attention to detail from developers. Our team adheres to a transparent and customer-oriented approach at each stage.

1. Analysis and definition of automation goals

The first stage of developing a management system for a microfinance organization is an analysis of business processes, current tasks and strategic goals. Analysts delve into the specifics of the company’s work: they study how applications are processed, customer data is processed, payments, debts and communication methods are recorded. It is important to identify bottlenecks that slow down work or create risks, and to determine the goals of CRM implementation.

2. Technical task

Based on the analysis, a technical task is formed – a key document that describes all the requirements for the future CRM system. The TOR fixes functional modules, integrations, user roles, usage scenarios, and data security requirements. Non-functional parameters are also determined here: performance, scalability, number of simultaneous users. The technical task is a project roadmap agreed upon by the development team with the customer, which eliminates misunderstandings and additional adjustments.

3. Design and prototyping

After the TOR is approved, the system architecture is designed: key CRM components are determined, their interaction, database selection, server architecture (monolith or microservices). Next, interactive screen prototypes are developed in Moqups, Figma, Axure, or Adobe XD to show the customer how the CRM will look and work before the project begins.

4. UX/UI design development

UX/UI design is the visual and functional part of the program. First of all, designers focus on usability – the system should be intuitive for all employees, provide quick navigation, a minimum number of clicks to complete tasks, and access to important data. The design takes into account corporate colors, brand book, as well as modern trends – minimalism, adaptability, lightweight interfaces without unnecessary overload. Special attention is paid to interfaces for mobile devices and tablets, so that the system remains convenient even outside the office.

5. Software code

The key stage of CRM development for microfinance institutions is the creation of software code. To ensure fast work and a flexible interface, tools such as React, Vue.js, Angular are used for front-end development. The back-end is implemented in such programming languages ​​as Python and Java, using the Node.js platform, frameworks and databases PostgreSQL, MySQL, MongoDB. REST API or GraphQL is used for data exchange. At this stage, integrations with external services are implemented, interaction with the database is configured and data protection is ensured (for example, through encryption, tokenization, OAuth).

6. Testing

After writing the software code, the system undergoes multi-level testing. QA engineers check the CRM for bugs, logic errors, and vulnerabilities. Comprehensive testing also includes load tests, checking the correct operation of integrations, security, and usability. The goal is to release a stable and reliable product that is ready to work even under extreme load conditions.

7. Release and implementation

This stage includes transferring the CRM system for MFIs to a server or hosting it in the cloud, configuring domain names, SSL certificates, and databases. Final testing is carried out in real conditions, transferring data from old databases, and training employees. After the release, the CRM is gradually implemented so as not to interrupt business processes, but from the first day the system begins to save employees’ time and reduce your business’s costs.

8. Project support and development

Work with CRM does not stop there; the program requires technical support, updates, and scaling as the business grows. Feedback from users helps to track logs, troubleshoot problems, advise users, update libraries and server components to improve security after the system is launched. In parallel, work is underway to develop the system: add new modules, integrations, improve interfaces. This approach allows CRM to remain relevant and as valuable as possible for your business.

Creating an automated management system involves not only writing a program, but also a deep dive into business processes, legal requirements and the intricacies of financial transactions. It is better to order a CRM system for microfinance organizations from us, because we:

• have extensive experience in the fintech sphere, in particular, successful cases of CRM implementation for physical and online MFIs, pawnshops and fintech startups, and understand their specifics – from calculating interest on loans to integration with AML systems;
• develop unique software products and adapt ready-made programs, we do not offer template solutions – each CRM system we develop is created taking into account the specifics of your business, scale of activity and strategic goals;
• provide dedicated professional teams of analysts, designers, designers and developers with extensive experience who follow the latest trends in the IT industry and have in-depth knowledge of modern technologies;
• value the trust of our clients, so you will always be aware of the progress of the project, you will be able to make your own adjustments and receive reports on the work performed;
• stay with you for a long time – we update, scale, and refine the system as the company grows;
• use a modern technology stack to make CRM stable, scalable, and fast.

The AVADA MEDIA team does not just create software, but develops its own digital ecosystem for you that solves your problems, not creates new ones.