Company's Name: Software's Name: Octopus Microfinance Octopus Microfinance Suite

2009 Software Reviews
Company's Name:
Software's Name:
ITEMS
Contact information of the person who fills the
questionnaire:
Octopus Microfinance
Octopus Microfinance Suite
CHOICE LISTS
FREE ANSWERS / DESCRIPTIONS / COMMENTS
Vincent BIOT
Chief Operating Officer
vincent@octopusnetwork.org
00 33 1 58 56 10 00
Jun-07
Name
Position
e-mail address
Phone number
Since when are you working with this institution?
COMPANY PROFILE
Contact Details
www.octopusnetwork.org
50 avenue des Champs Elyses 75009 Paris
URL
Postal address
Country
France
Region
Europe_and_Central_Asia
00 33 1 58 56 10 01
Dsire Maillard-Sallins - desiree@octopusnetwork.org
Nicolas Mangin - nicolas@octopusnetwork.org
Jan-09
Fax number
Sales representative
Technical manager
Established since
Status
Limited_liability_company
OCTO Technology (45%), Pierre Pezziardi (25%), Oxus Development

Network (12%), ABC Microfinance (4%)
Main shareholders (with % of shares)

Turnover and Results last 3 financial years
2008 (within Octo): 200 000,

2008 (within Octo): 200 000,
2008 (within Octo): 40 000,
2008 (within Octo): 40 000,
Company's turnover
Turnover linked to microfinance activity
Company's net profit
Profit link to microfinance activity
Staff
9 (5 Paris + 4 Bishkek)
9
3
3
3
6
2
Whole company staff

Core Banking / Microfinance Systems Staff
Sales & marketing CBS staff
Implementation & training CBS staff
Technical support CBS staff
Product development CBS staff
Management & administration CBS staff
Other
Other softwares / services that your company

provides
Softwares
Consulting in IT & MF
Services
Has your company set up partnerships for the

microfinance market?
with Microfinance Institutions?
YES
with Resellers?
YES
with Consulting companies?
NO
with NGO's?
YES
with other type of institutions?
NO
Oxus Development Network

Jsurf (Sngal), Sciences Park Asia (Sri Lanka)
Planet Finance, OCTO Technology
ACTED
Main evolutions since 3 years
2007: first version and first deployement (OXUS) - 2008: First revenues
and profitability; First users outside Central Asia (Europe, Africa); 2009:
First decentralized contributions: set-up of the Octopus platform in
Bishkek, that now contributes for about half of the development
productivity; Partnerships with IT companies in Sri Lanka and Sngal;
Release of the ASP version (Octopus Online); Major improvements:
village banking, consolidation module, accrual accounting
Trends for next 3 years
2009: Development of the savings module. Optimization of the SaaS

version (Software as a Service = ASP). Raise of capital. 2010:
Development of the transfer module. Multi-currency. Set-up of 2 platforms
in Middle East and North Africa and South Asia. 2011: Set-up of 2
platforms in Africa.
SOFTWARE OVERVIEW
Software versions
July 2007
More than 20
v.2.5.8
12 (+ non-monitored MFIs that downloaded the software)
0
April 2009
May 2009
Monthly
Date of 1st release

Number of releases
Latest version number
Number of installations latest version (nb of MFI)
Number of installations previous version
Date of last released version
Date of next release (if already planned)
Average release frequency
1 of 12
Company's Name:
Software's Name:
ITEMS
CHOICE LISTS
Patches and updates integration tool
YES
FTP server for patches download
YES

Intergrated automatic upgrade mechanism. See here:
http://www.octopusnetwork.org/index.php?option=com_content&view=arti
cle&id=135&Itemid=18&lang=en
The user is informed when a new version is available
Type of institutions targeted

Commercial Banks
NO
Microfinance Banks
YES
Community Banks (limited service area)
YES
Finance Companies
YES
Savings and Credit Associations
NO
Cooperatives and Credit Unions
NO
Non-profit Organizations
YES
Others
NO
Yes after the achievement of the savings module (by Sep 09)
Need adaptations
Market references
0/3/8
0/3/8
1 to 9
3
500 to 15000
2008: Afghanistan:1 // Kyrgysthan:2 // Tadjikistan:1 // France:1 // Ghana:1
// Madagascar:1 // India:1 - May 2009: Tajikistan: 3 // Afghanistan: 1 //
Kyrgyzstan: 5 // India: 1 // Ghana: 1 // France:1
Afghanistan:3 // Kazakhzstan:1 // India:2
Number of operating clients in 2006/2007/2008

Number of operating microfinance clients in 2006/2007/2008
Lowest and highest number of branches within MFI clients
Average number of branches per client
Lowest and highest nb of accounts handled within MFI clients
Number of microfinance clients by country (2008)
Number of ongoing installations by country
Number of clients in 2006/2007/2008 by type
0
0
0
2007: 3 / 2008: 8 / 2009: 12
0
0
0
0
Commercial_Banks
Microfinance_Banks
Community_Banks (limited service area)
Finance_Companies
Cooperatives_and/or_Credit Unions
Non_profit_Organizations
Savings_and_Credit_Associations
Other
Commercial offices (including resellers)

2 (+ 2 resellers)
France, Kyrgyzstan (+ Senegal and Sri Lanka)
Number of commercial offices

Location of commercial offices
Support center (including resellers)

4
France / Kyrgyzstan / Sri Lanka / Senegal
2 / 1 or 2 / 2 / 2
E-mail, voice on IP, forum, and eventually phone
French, English, Russian, Kyrgyz,
On the website
Pdf downloadable on the website + wiki
Octopus Community (cf. www.octopusnetwork.org)
Number of support centers

Location of support centers
Support center staff (number of people)
Hotline
other
Support in which languages

Technical documentation available
YES
User documentation available
YES
User club existence
YES
Main evolutions since 3 years

Trends for next 3 years
Forecast features under development for the software
YES
Further innovation in pipeline for microfinance market
YES
Outsourcing
YES
Social investors + partnerships with MF networks

Mandatory and voluntary savings module, interbranch transfer,
optimization of the online version,
Optimization of the performance of the SaaS offer - Multi institutions
functionalities
Decentralized developpment by the community (contributions from
Kyrgyzstan mainly, Senegal and Sri Lanka)
Medium-sized MFIs; first in Central Asia and Afghanistan (Q2-Q3 2009);
then other areas (South Asia - Middle East and North Africa - South
America - Africa)
Targeted new clients for next 3 years
According to you, who are your (3 main) competitors

as microfinance software editor?
MIFOS, Loan Performer
Microfit, Abascus, Mifos
Current competitors
Estimated future competitors
User-friendliness, development methodology (agile development continuous improvement), cost, possibility to get local support,
opportunity to be independent from a vendor (open source means that the
MFI owns also the code, and can eventually choose its own counterpart)
The five major strengths of your software
FUNCTIONAL COVERAGE
Client Information Management
core banking system
Client data such as name, marital status, age, gender, address (home
and work) and activity
YES
Group clients data such as name, status, members (nb / list), leader,
creation date, meeting date
YES
Village data such as name, location, status, groups (nb / list), leader,
registration date
YES
Basic information (identity, education and work background, financial

situation, belongings,) + Customizable fields
Group information (name, date of creation, referee,...), list of members
with possibility to access members' details, leader, loan share amount for
each member.
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Company's Name:
Software's Name:
ITEMS
Facilities to check client behavior - i.e. credit and deposit status and
history (either from external or internal sources)
Historical data on clients (including deleted, canceled, rejected and
closed loans)
Able to track clients at different stages of the process (prospect, active,
blocked)
Unique identifier of client as a parameter (internal number, Mnemonic, ID
card,)
CHOICE LISTS
YES
YES
YES
Blacklist, late customer reported
YES
ID Card + internal number
Physical identifier of client (picture, signature, finger print)
YES
Identifies potential duplicates (i.e.. double entry of clients)
YES
Tracks potential clients information
YES
Black list
YES
Picture
Check for ID duplication + 'Quality report' raising suspect similiraities
between among clients
By the status 'pending'. Possibility to parametrize a report to identify the
potential client (or "pending" client)
cf. screenshot
Follow-up of relationships between clients
NO
Possibility to print a client identification sheet
Loan management
Integrated with accounting system
NO
core banking system
Automatic bookings related to loan management // export the accounting

table
Unlimited
YES
Number of products allowed

Permits the addition and modification of loan products
YES
Lending methodologies
Individual clients
YES
Solidarity groups with individual loans
YES
Solidarity groups with group loans
YES
Village banks with individual loans
YES
Village banks with group loans
NO
Methodologies of interest calculation available

Flat
YES
Declining balance
YES
Fixed rates
YES
Discounted from the loan
YES
Floating/Variable rate
NO
Daily interest calculation (with weekly or monthly installments) on

principal outstanding
YES
Other (user defined)
YES
2 calculations available: declining with fixed instalments and declining

with fixed repayment
Same as flat rate
Possibility to manage that through 'Exotic products' or origination fees
management
Notion of 'Exotic product' in the software
Special products
Leasing
NO
Mortgage
NO
Warrantage
YES
Line of credit
NO
Other
YES
Exotic product (Agrocredit, etc.)
Historic data on products
NO
Forced deposits (linked to deposit monitoring) with ability to block

access to forced savings (where appropriate)
NO
Planned to be implemented by August 2009
Forced deposits linked to instalment schedule as a separate option.
NO
Planned to be implemented by August 2009
Collateral (cash and non-cash) tracking
YES
Guarantor tracking and number of guarantors per loan
YES
Collateral type configurable

No ex-ante control on the number of guarantors to deliver the loan. No
limitation of the number of guarantors
Loan simulation including production of installments schedule
YES
Payment Types
Term loans with constant payments
YES
Term loans with constant principal
YES
Irregular payments (set by the user)
YES
Balloon schedule (interest only instalments and principal at the

end)
Possibility to choose order of repayment between Penalties,
Interest and Capital
YES
cf. screenshot
NO
Planned in S2 2009

Payment frequencies
Daily
YES
Weekly
YES
Biweekly
YES
Every 4 weeks
YES
Monthly
YES
Bimonthly
YES
Quarterly (every 3 months)
YES
Bullet loan (single repayment)
YES
YES
Any instalment periodicity allowed
365 days
YES
360 days (30 days/month)
YES
For certain installment type (see below)

For certain installment type (see below)
Payment year supported
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ITEMS
CHOICE LISTS
336 days (4 weeks/month)
NO
52 weeks
NO
YES
The interests rate are defined by period of installment: weekly rate for
weekly installments (so the equivalent payment year supported is 365
days), idem for Daily, Biweekly, 'Every 4 weeks' installments; monthly
rate for monthly installments are somehow equivalent to 360 days/month,
etc.
Grace periods
Late payment grace period
YES
Installments schedule grace with interest
YES
Installments schedule grace without interest
YES
Delinquency management facilities (handling of on-time, early, late,

partial, and extra payments) and calculation methodology
Defined as a 'General parameter', ie will affect all the loans, whatever the
product
At the product/contract level
At the product/contract level
YES
Dynamic calculation of interests and penalties depending on the date of

repayment and on the amount repaid (partial and extra payments). Late
penalties are accrued everyday (modulo late payment grace period,
accrue penalties Y/N during days off, stop accruing penalties after some
time), as a % of the initial amount, the OLB, the overdue interests, the
overdue principal, or a combinasion of those choices.
YES
Entry fees (% of the amount; charged at the disbursement)
YES
See above - Admin may suspend the fees
Additional types of payments

Commissions and fees (Please specify at what stage of the loan
cycle those fees may be charged)
Penalty fees for late payments (Please specify if the user may
suspends these fees)
Credit insurance
NO
Group insurance fees
NO
YES
, Anticipated repayment fees (future interests are reseted, but a

commission can be charged)
Repayment methods
Cash
YES
Check
NO
Standing order (auto debit)
NO
Money order
NO
Current account transfer
NO
ATM Card
NO
POS devices
NO
Mobile banking
NO
Planned Q2-Q3 2009
List the different steps of the loan cycle (application, appraisal,approval,

disbursement, payment)
Approval workflow system
Closing a loan (on-time and early)
YES, manual
YES, automatic
Back dating of transactions on loan accounts
NO
Loan rescheduling : follow-up and separation from other loans
YES
Expected repayment amount proposed by default by the system
YES
Unexpected amount possible (underpayment, overpayment,more than

loan balance)
YES
Batch processing for disbursement lists / collection sheets
YES
Taxes management on loan products
NO
Loan accounts numbering (random, user defined, system generated)
YES
cf. screenshot
System generated (configurable to a certain extend)
Provide a list of standart documents with example (contracts, repayment

schedules, account statement)
Deposits management
Integrated with accounting system
Application (Instruction) -> Appraisal -> Approval (by the Credit Comittee)
-> Disbursement -> Payment
Cf; above
if on time: automatic closure if early: manual closure
core banking system
Appraisal document, Loan Schedule/Account statement, Contract, Cashout receipts, cash-in receipts
Planned in Q2-Q3 2009
YES
Types of deposit accounts

Saving account
YES
Current account
YES
Overdraft account
NO
Term deposit
NO
Planned saving
NO
Group saving
NO
NO

Interests on deposits calculations

Time weighted method
YES
Minimum daily balance
NO
Minimum monthly balance
NO
Minimum quarterly balance
NO
Average daily balance
NO
Average monthly balance
NO
NO
Available in the v.2.7 (end of August)

Available in the v.2.7 (end of August)
Planned in Q3 2009
Interests payment frequency (Daily, Weekly, Monthly, Quaterly

)
Daily, Weekly, Monthly, Yearly
Voluntary deposits
YES
First saving with loan installments
NO
Planned in Q3 2009
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ITEMS
CHOICE LISTS
Compulsory saving collection before loan disbursement
NO
Term deposit simultation
NO

Planned in Q3 2009
Deposits and withdrawal methods

Cash
YES
Check
NO
Transfer
NO
Batch transfer (ex : salary of the employees)
NO
ATM Card
NO
POS devices
NO
Mobile banking
NO
PDA
NO
Other
NO
Tax withholding functionality
NO
Dormant accounts management, blocking or warning when a transaction

is posted
NO
Closing with balance transfer
NO
Option for jointly held accounts
NO
Hard copies management (passbook, checks, account statements)
NO
Back dating of events recording
NO
Teller management
Create a new teller
YES
Open Till
NO
Close Till
NO
Cash overage and shortage management
YES
Transfer cash from vault to a till
NO
Transfer cash from till to vault
NO
Transfer cash from one till to another
NO
Transfer cash from HO to Branch office
YES
Transfer cash from Branch office to HO
YES
Cash to cash transfer by or to client
NO
Cash receipts printing (deal slips)
YES
End of day cash position
YES
Bill counting accessory
NO
Continuous cash position
YES
At the Funding Line and Branch level
Manually
Manually
Transfer
Interbranch transacting
NO
Interbranch funds transfer for clients (local)
NO
Interbank funds transfer for clients (local)
NO
International funds transfer for clients
NO
Accounting
Chart of accounts management
YES
Adheres to GAAP and/or IAS provisions
YES
Supports Anglo-Saxon accounting standards (describe)
NO
Supports French accounting standards (describe)
YES
The French chart standard operations are used by default.
Possible modifications to meet local legal requirements (central bank,

supervisory regulations) or business requirements
YES
Possibility to edit the ID number associated with each accounting line.
On-line or batch ledger updates (tills, credits, deposits)
NO
Automated calculation and posting for partial or late payments (including

interests)
YES
Categorizing current vs. delinquent loans
YES
Accrual vs. cash
YES
Existence of accounts to handle interest and principal due but not

received separate from accrued
Software ceases to accrue interest on late loans (automatically or on
demand)
YES
Set in a general parameter (common to all the loans of the branch)
YES
Cost accounting
NO
Asset management
NO
Budget management
NO
Treasury management
NO
Pay-roll management
NO
Accounting interface
Export to external accounting packages? (specify which)
YES
Import from external accounting packages? (specify which)
NO
End of period process (day, month, year) and approximate timing for
5.000, 15.000, 50.000, 100.000 clients registered in system
YES
Generation of financial statements (provide list)
YES
Generation of aging categories reporting (aging of loans)
YES
1C; SAGE
Manual (can be handled everyday/week/month). Time for: 500 clients ->
60 seconds; 15 000 -> 5 minutes; 50 000 -> 20 minutes ; 100 000 ->> 45
minutes
Balance Sheet; P&L statement
Share Management
Membership share management
NO
Share buying
NO
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Company's Name:
Software's Name:
ITEMS
CHOICE LISTS
Share selling
NO
Share valuation
NO
Dividends calculation
NO
Flexibility
Consolidation / Possible network configurations
Single PC
YES
Decentralised
YES
Decentralised with consolidation tool
YES
Centralised on line
YES
Centralised on line with off-line option
NO
Other
NO
See online.octopusnetwork.org
Technical Deploiement of software

Stand-alone
YES
Client/Server
YES
ASP
YES
Web Interface
NO
Multi-Tier
YES
Delayed posting
NO
See online.octopusnetwork.org
Tracking flexibility
Tracks clients at different levels (individual, group, village,
branch, region, institution
YES
Individual, group, village, district, region and branch/institution
Track current and historical client portfolio of loan officer /

supervisor
YES
Is defined/implemented in the configuration phase of the Business

Intelligence / consolidation process
Mechanisms for separating information on an office basis
YES
It is possible to configure the software such as Loan Officers see only

their portfolio
Presentation of financial or statistical information by branch or

region
YES
Ability to neutralize inter-branches transactions
NO
Multiple branches or regions
Multi institutions
NO
Max 11 concureent users with SQL Server Express (free) ; Unlimited with
SQL Server
(Not sure to have a clear idea about what is meant) Some reports are
configured by default to offer a breakdown of the main figures by region,
loan product, loan officer, etc.
Maximum number of accounts handled by software
Maintenance of indicator lists for selected data (like region list)
YES
Is there any field that can be modified or added by user ?
Yes
Multiple languages
French, Russian, English so far

French, Russian, English so far
But the user can define himself the language among the ones available;
this setting will be saved at the next use
Technical documentation and user guides languages

Languages available within software
Can support languages on a user basis
NO
All messages are in the language of choice
YES
All screen information is presented in language of choice
YES
Multiple language support requires recoding (language is

hardcode) or is intrinsic to the system (language is
parameterized)
NO
The user/client wishing so, can participate to the translation workforce of

Octopus, and have access to the translation wiki of Octopus. Its change
will be taken into account and deployed in the following version (around
one month later) - and automated tool allows to export/import the labels
from the Excel spreadsheet
Statements can be in different languages? If yes, possibility to

allocate a language to a client ?
YES
(to the two assumptions)
Ability to handle non roman scripts
YES
(+ Jalali calendar)
Multiple currencies
Supports local currencies and foreign currencies
YES
Supports loan / deposits accounts and teller transactions in

different currencies
YES
Supports foreign exchange exposure calculation facilities
YES
Handles maintenance of value accounts and other inflationary

risk mitigation functions
NO
Possibility to add a currency
YES
Daily exchange rates entry
YES
Displayed in 2 currencies ?
YES
Position Management
NO
Manually
Rounding
Rounding per currency to fit cash constraints (5, 10, 50, 100, ),
possibility to set it up by product
NO
Rounding of installment amounts (Principal + interests)
NO
Only 'Use cents= Y/N'
Guaranty Deposits and funds

Guaranty funds
NO
Death insurance
NO
Garanty fund deducted from loan amount prior to disbursement or

on disbursement date
NO
Garanty fund paid before disbursement
NO
Garanty fund paid with installments
NO
Provision
Calculation set by ageing rules and product type
Ageing rules only
YES
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ITEMS
Calculation modes (total outstanding, past dues only, ...)
Provision automatically calculated at disbursement
Reporting
CHOICE LISTS
YES

Yes, for Total Outstanding
YES
core banking system
Statistics about clients and product information, OLB analysis, PAR

analysis, financial movement reports, data quality report, loan officer
follow-up.
Existing operational reports
YES
Existing financial reports
YES
Existing management reports
YES
Regulatory authority reporting (Central Bank) configurable
YES
CGAP Key Performance Indicators
YES
User defined reports
YES
Possibility to perform trend analysis / comparisons (i.e. this month vs

last month, payment performance analysis ...)
YES
With the consolidation system
Export utility (Word, Excel, other format,)
YES
Customized statistics
YES
pdf, doc, xls

Via Crystal Report - or on demand: a system of report package allows to
deploy customized reports via .zip files
Financial stock (Balance sheet, P&L)

"Stock reports": OLB/PAR per contracts/clients, with the possibility to
provide a multi-criteria analysis (by gender, district, activity, written-off
etc.). 'Flow reports': multi-criteria analysis of transactions (disbursements
and repayments)
Possibility to create specific reports with Crystal Report
Accessible in the different reports
Additional functionalities
Payment cards
sub-party
Check management
sub-party
Payment services (bills, utility management)
sub-party
Money exchange service
sub-party
Credit scoring
additional module
Customer relationship management
additional module
HR administration
sub-party
Batch transfer functionality
sub-party
Other products and services
sub-party
No experience so far
Can be developed on demand
Can be developed on demand
EASE OF CONFIGURATION
Configurator exists
YES
Parameterization steps
YES
Calendar (holidays / working days)
YES
Configuration printing
YES
Configuration interface/ergonomy
YES
Possibility to replicate the configuration from one system to another
YES
Exist only in the ASP mode; planned for the standalone version by the
end of 2009
To a certain extent (general parameters, holidays, provisioning rules,

products)
SECURITY
Audit
Audit methodology
YES
Unique teller identification number
YES
Traceability of products parametrization
NO
Traceability of connections - loggings
NO
Traceability of transactions
YES
All transactions are tracked (with the user id and the date)
Identification
Users profiles (roles and privileges)
NO
Activate / deactivate a user
YES
Technology used
Accountability
by transaction
YES
by consultation
NO
data collected in log file
NO
Backup management
Using an external tool
NO
Internal tool: specify whether manual or automatic
YES
Automatic recovery tool
NO
Manual (one click)

Manual (one click)
Data protection
on database
NO
between remote stations
NO
on external floppies and backup cartridges
NO
TECHNICAL ARCHITECTURE
Server requirements
Windows
The difference will be only on the server side: *For 15.000 clients, we
need a dual-core with 2Go RAM and for 100.000 clients, we need 2 dualcore with 4Go RAM
Operating system
Minimal configuration for 15.000, 50.000, 100.000 clients
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Company's Name:
Software's Name:
ITEMS
CHOICE LISTS
Optimal configuration for 15.000, 50.000, 100.000 clients

Size of server application for 15.000, 50.000, 100.000 clients

150 Go Hard Drive - 4Go RAM
A basic database with 15.000 clients needs 20-30Mo and a database
with 100.000 clients needs 200-300Mo
Network requirements
In the standelone mode, we need only a LAN network. In ASP mode, we
need a standart TCP/IC connection
Describe the usual configuration

Protocol
Internet TCP/IP
Database requirements
SQL Express (Free version of SQL Server) is sufficient in most cases
Supported native databases
SQL Server
ODBC
ODBC, JDBC
Workstation
Windows
A standart configuration is ok: 1 CPU 2GHz and 2GO RAM
Dual Core 2Go and 2Go RAM
A basic installation need 80Mo but if you want all reports, you need
110Mo
Operating system
Minimal configuration
Optimal configuration
Size of client application
Existing interface
We can export all reports in Excel, Word or PDF - Export the accounting
booking in Excel and text format.
Excel, Word, text formats (TXT, CSV)

Other
Software
C, SQL
We can browse/download the source code here:
http://forge.octo.com/svn/Octopus/trunk/
Crystal Report
Programming language
Open source
YES
Other integrated tools
PLANNING, TRAINING AND BUDGET

System implementation
Implementation methodology
See pricing case

Cf. Pricing case: Principle of stearing committee and release manager.
The latter being trained so as to be able to install and configure Octopus;
create and update reports and internal forms (cash receipts, contract
forms, etc.); and eventually update the consolidation/BI procedures and
reports.
Jsurf, Dakar, Senegal; msy@jsurf.net; French - ACTED, Bishkek,
Kyrgyzstan; centralasia@octopusnetwork.org; Russian, English - Science
Park Asia, Sri lanka; ranil.fernando@scienceparkasia.com;
English/Cingali
YES
Describe how you build capacity at your client to replicate

implementation of one branch to other branches by itself
Installation & training partners (please indicate installation and training

languages where appropriate)
Average implementation time (from contract signature to service launch)
Depends on the adaptation required. Average 5 months
Quickest implementation
1 month (single branch)

9 months (including 6 months of incremental adaptation/development)
Longest implementation
Guarantee period
YES
Installation CD ROM available
YES
12 months -
The administrator is informed when a new version is available on the

website. He can choose to download and install it - database structure is
automatically upgraded to match with the new scheme; all previous
functionalities and the parametrization are kept unchanged.
Software update procedure
Training
User training
YES
Cf. file 'Setup_proposal.pdf'
If yes, how long? Who? Cost

System administrator training
YES
1 week - 3 000$/person

Training local IT specialist
YES
2 weeks - 6 000$
100 - 500 $, depending on the complexity - decreasing fares with the
amount of work

Cost of programmer man-days for customization
System pricing
0 (open source)
License (basis, range cost)

License expiry
NO
From 500 to 25000, depending on the size of the MFI, and the level of
follow-up required (cf.
http://www.octopusnetwork.org/index.php?option=com_content&view=arti
cle&id=148&Itemid=136&lang=fr). For Octopus online, annual fees.
Annual maintenance fee (basis, range, % license)
Not Assessed
N/A
Depends on the size and on the IT skills of the MFI, level of autonomy,
etc.
Cost per transaction (basis, range)

Assistance included in the initial license cost
Average cost of installation, with standard training included (% license)
N/A
Additional modules (not included in the standard software) - List features
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PRICING CASES
Software's Name:
Description of the MFI
situations
Case 1
Case 2
Case 3

Number of
clients
100,000
40,000
15,000
Number of
users
220
60
45
Company's Name:
Products
Loan + Deposit + Transfer

Group Loan + Individual Loan
Individual loan and deposit
Number of % Urban /
branches
% Rural
50
50/50
20
20/80
10
80/20
Price in $
Comments
0
105,000
60,000
General Comments:
IT projects rely for sure on the technical and communication skills of the 'vendor' team. But a success requires a clear involvement from the client
side also, and the appropriation of skills an MFI does not always expect to need. Octopus Microfinance focuses therefore on helping MFIs become as
much autonomuous as possible, by building technical capacities within the MFI (managing the database, creating new reports, define and configure
the business interlligence strategy, etc.). At Octopus, we also think that a Core Banking System is not a classic traded object. Unlike when
purchasing a car, implementing an MIS is not about selecting the right options (like color, air conditioning, etc.), paying, shaking a few hands and
hitting the road. The CBS reflects all the methods and skills that the MFI manages internally. Because an MFI changes and improves over time (and
often because of growth, competition and regulation), its MIS must accompany this change. Octopus main asset is its process, its availability to
involve its users in the stearing of the development; and to continuously improve thanks to methodologies often refered to as 'agile practices'. The
pricing cases below give you an indication of costs and are quite conservative: Octopus is an open source platform and you will mainly purchase
skills and consulting. Global implementation costs for the client will actually depend on the current staff knowledge, infrastructures quality, the ability
to hire and train staff, etc. The bigger the involvement of the MFI (quality of the release manager, concern of the stearing committee, commitment of
the end users), the less painful (and costly) the CBS is and will be.. Eventually, the total costs will of course depend on how separated branches are /
former data quality / reporting complexity / Transportation costs, etc.
Case 1
No assessment
General comments
Octopus can accompany MFIs when managing 100 000+ clients (no limitation in term of performance). But it appears difficult to provide an
assessment of the conditions of such an implementation, given 1- the absence of transfer module in the current version of the software 2- the lack of
experience and accuracy of the requirements in term of transfer
9 of 12
PRICING CASES
Software's Name:
Case 2
Company's Name:
Contains two tables: steps outline with comments & recommendations and finally pricing outline
STEPS OUTLINE
Duration in
month
Specifications, installation,
parameterization and
configuration
Testing / User Acceptance tests
Pilot phase
Workload in
Workload in
men-month on men-month on
the vendor side the client side
Comments /
Recommendation
1 to 3
2
2 to 6
4
1 full time + 1/2

days per week
2,5
See below: incremental

adaptation and capacity
building
Included in the incremental

adaptation/configuration
Training
First branch roll-out
Full roll-out
Help Desk, assistance included in

the initial license cost
12
11+ 12
TOTAL (maintenance)
Including data migration

automatization for the pilot
branch
MFI referent
(super user) +
At least 1
referent
(traininer) per
branch
(Training of the trainer Octopus University)
PRICING
OUTLINE
product / service
Price in $
Comments
Core module
License
Open Source
Additional
modules
Database
license
40 000 clients can be

easily managed on one
single database with MS
SQL Express (free) - In a
context of decentralized
databases/branches with
consolidation (likely given
the rural orientation of the
MFI), no limit should be
reached with
SQLExpress. If internet
connection within the
country are reliable
enough, possibility to
deploy on a centralized
database, managed by
Octopus Microfinance with other maintenance
conditions
Interface module
+ Delivery
Channel
Implementation
Fees and
Expenses
Training Cost
Maintenance
(yearly price)
15
TOTAL
10 of 12
85,000
10,000
10,000
105,000
= 0,75% of the MFI

OLB if Octopus
Online used
PRICING CASES
Software's Name:
Company's Name:
11 of 12
PRICING CASES
Software's Name:
Company's Name:
General comments
Octopus set-up is an incremental process, and can be splitted in the following steps: 1- Kick-off session (2 weeks) to introduce the process and
related tool, define the roles of the release manager, of the stearing committee and of the other stakeholders (end-users representatives, etc.) 2Iterative adaptation step: the software is installed in several posts in the pilot branches - if gaps are identify, the release manager and the end-users
representative work with the development community to incrementally adapt it (Follow-up of the developments at least once a week - new release
deployed every month) 3Pilot phase- once the software satisfies the needs of the MFI (excluding ergonomic improvements, and other minor
improvements), a automatized data import tool is developed; the data of the pilot branch are duplicated in Octopus 3- Parallel run in the pilot branch
& training of the trainers (fine-tuning of the software through iterative development) 4- Migration and parallel run in the other bra+B32nches 5Progressive Roll-out
Case 3
Contains two tables: steps outline with comments & recommendations and finally pricing outline
STEPS OUTLINE
Duration in
month
Specifications, installation,
parameterization and
configuration
Workload in
Workload in
men-month on men-month on
the vendor side the client side
1 to 3
2
2 to 6
3
Testing / User Acceptance tests
Pilot phase
Training
First branch roll-out
Full roll-out
Help Desk, assistance included in

the initial license cost
12
8+ 12
TOTAL (maintenance)
Comments /
Recommendation
1 full time + 1/2 See below: incremental

days per week adaptation and capacity
building
2,5
-
Included in the incremental

adaptation/configuration
MFI referent
(super user) +
(Training of the trainers At least 1
Octopus University)
referent
(trainer) per
branch
PRICING
OUTLINE
product / service
Core module
License
Additional
modules
Database
license
Interface module
+ Delivery
Channel
Implementation
Fees and
Expenses
Training Cost
Maintenance
(yearly price)
TOTAL
12 of 12
Price in $
Comments
Open source
0
0
49,000
6,000
5,000
60,000
= 0,75% of the MFI

OLB if Octopus
Online used

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2009 Software Reviews

FREE ANSWERS / DESCRIPTIONS / COMMENTS

OCTO Technology (45%), Pierre Pezziardi (25%), Oxus Development

Main shareholders (with % of shares)

2008 (within Octo): 200 000,

Whole company staff

Other softwares / services that your company

Has your company set up partnerships for the

with Consulting companies?

with other type of institutions?

Oxus Development Network

Main evolutions since 3 years

Trends for next 3 years

2009: Development of the savings module. Optimization of the SaaS

Octopus Microfinance Suite

Date of 1st release

2009 Software Reviews

Patches and updates integration tool

FTP server for patches download

FREE ANSWERS / DESCRIPTIONS / COMMENTS

Type of institutions targeted

Community Banks (limited service area)

Savings and Credit Associations

Cooperatives and Credit Unions

Number of operating clients in 2006/2007/2008

Commercial offices (including resellers)

Number of commercial offices

Support center (including resellers)

Number of support centers

Support in which languages

User documentation available

User club existence

Main evolutions since 3 years

Further innovation in pipeline for microfinance market

Social investors + partnerships with MF networks

Targeted new clients for next 3 years

According to you, who are your (3 main) competitors

The five major strengths of your software

core banking system

Basic information (identity, education and work background, financial

2009 Software Reviews

FREE ANSWERS / DESCRIPTIONS / COMMENTS

Blacklist, late customer reported

ID Card + internal number

Physical identifier of client (picture, signature, finger print)

Identifies potential duplicates (i.e.. double entry of clients)

Tracks potential clients information

Follow-up of relationships between clients

Possibility to print a client identification sheet

Automatic bookings related to loan management // export the accounting

Number of products allowed

Solidarity groups with individual loans

Solidarity groups with group loans

Village banks with individual loans

Village banks with group loans

Methodologies of interest calculation available

Discounted from the loan