MICROFINANCE TECHNOLOGY NC IV COURSE MODULE

AGROENTREPRENEURSHIP National Certificate IV (TESDA Course)

The TESDA Course in MICROFINANCE TECHNOLOGY NC IV consists of competencies that a person must achieve to interact with loan officers, clients and other stakeholders in providing microfinance products and services for start-up/expansion of a small or micro enterprise. It also covers core competencies in supervising loan officers, overseeing implementation of microfinance products and services, monitoring progress of workplan implementation, and evaluating and supporting staff performance.

A person who has achieved this Qualification is competent to be:

• Supervising Microfinance Loan Officer
• Microfinance Supervisor
• Microfinance Team Leader

MICROFINANCE TECHNOLOGY NC IV COURSE

Course Title: MICROFINANCE TECHNOLOGY
Level: NC IV
Nominal Training Duration : 357 Hours

Basic – 36 Hours
Common – 74 Hours
Core – 247 Hours
On-the-Job/Practical Training – 528 Hours

This course is designed to enhance the knowledge, skills and attitudes of an individual in the field of microfinance technology in accordance with industry standards. It covers competencies such as supervising MFI loan officers, overseeing implementation of products and services, monitoring progress of workplan implementation, and evaluating and supporting staff performance.

The course utilizes the competency-based approach to TVET which recognizes various types of delivery modes, both on and off-the-job to provide trainees extensive time to develop their competencies as Team Leader/Supervisor. The on-the-job/practical training using the DTS approach is highly recommended to supplement the in school activities with a minimum of 3 months or 528 hours of training to give trainees more time to apply their learning from school in a real work situation under close supervision of MFI trainer/s in a MFI partner organization.

TRAINEE ENTRY REQUIREMENTS

Trainees or students wishing to enroll in this course should possess the following requirements.

• can communicate both in oral and in written;
• must be physically and mentally fit;
• with good moral character;
• Microfinance Technology NC ll holder or at least two years experience as Loan Officer

This list does not include specific institutional requirements such as educational attainment, appropriate work experience, and others that may be required of the students/trainees by the educational institution or training center delivering the TVET program.

COMPETENCIES REQUIRED IN MICROFINANCE TECHNOLOGY NC IV

This units of competency comprising this qualification include the following:

UNIT CODE	CORE COMPETENCIES (247 Hours)
HCS341301	Supervise MFI Loan Officers
HCS341302	Oversee Implementation of Microfinance Products and Services
HCS341303	Monitor Progress of Workplan Implementation
HCS341304	Evaluate and Support Staff Performance
UNIT CODE	COMMON COMPETENCIES (73 Hours)
HCS421201	Provide Quality Customer Service
HCS315202	Comply with Quality and Ethical Standards
HCS311201	Perform Computer Operations
UNIT CODE	BASIC COMPETENCIES (36 Hours)
500311115	Utilize specialized communication skills
500311116	Develop teams and individuals
500311117	Apply problem solving techniques in the workplace
500311118	Collect, analyze and organize information
500311119	Plan and organize work
500311120	Promote environmental protection

CORE COMPETENCIES

Core competency units in MICROFINANCE TECHNOLOGY NC IV.

UNIT OF COMPETENCY : SUPERVISE MFI LOAN OFFICERS
UNIT CODE : HCS341301

This unit of competency covers the knowledge, skill and attitudes required in the supervision of loan officers in their implementation of microfinance programs, policies and procedures. This further measures the performance of the team leader/supervisor in carrying out their tasks as supervisor.

1. Oversee field operations and other services
   • Formation of groups/center and center meeting is checked, monitored and provided with feedback to optimize provision of services and benefits based on the standard operating procedures
   • Coaching/Assistance is provided to loan officers in the conduct of area mapping/scanning to ensure quality of target area and client’s selection based on the standard operating procedures; and promoting products and services
   • Monthly and weekly targets/schedules are prepared/provided to loan officers in accordance with MFI annual and area targets
   • On-the-spot/surprise checks/audits of loan officers’ accounts are made in accordance with MFI internal control policy
   • Conflicts between loan officer and clients are settled and handled in accordance with MFI conflict resolution strategies
   • Tasks of immediate superior/subordinates are carried out during their absence in accordance with MFI standard operating procedures
   • Good interpersonal relationships are established and maintained with loan officers and clients based on company core values
2. Check loan officer’s processing of clients’ loans
   • Clients’ loan application documents are validated against MIS/source of information
   • Recommendations of loan officers are referred to the appropriate committee or level of authority for final decision based on loan approval matrix
   • Loan applications are recommended for appropriate action in accordance with MFI policies and procedures
3. Oversee regular and special events for loan officer and clients
   • Regular and special events are organized and facilitated in accordance with MFI schedule of activities
   • Event plan and personnel assignments and responsibilities are identified and assigned based on event objectives
   • Information on event is disseminated to clients in coordination with loan officers and staff concerned
   • Conduct of event/activity is overseen in coordination with loan officers, clients and partners
   • Activity is evaluated/assessed and documented and reported to immediate superior in accordance with MFI standard operating procedures
4. Deal with delinquent accounts
   • Delinquent accounts are monitored, validated/analyzed and reasons of delinquency are confirmed based on MFI policies and procedures
   • Delinquent payment options are presented to the delinquent clients and restorative actions are implemented based on MFI policies and guidelines
   • Plan of action is formulated and implemented in compliance with MFI policies and guidelines
   • When necessary, delinquent account is referred to legal officer for appropriate action based on MFI policies and procedures

UNIT OF COMPETENCY : OVERSEE IMPLEMENTATION OF MICROFINANCE PRODUCTS AND SERVICES
UNIT CODE : HCS341302

This unit of competency covers the knowledge, skills and attitudes required in overseeing loan officers and monitoring their implementation of microfinance products and services to clients based on policies and procedures. This measures the team leader/supervisor’s role in loan applications and monitoring of the implementation of products and services.

1. Check and review/validate loan applications
   • Completeness of loan documents/requirements is checked based on MFI loan applications checklist and procedures
   • Reviewed loan applications are verified/validated against MIS/records
2. Facilitate appraisal of loan applications
   • Evaluated loan recommendation result is referred to appropriate committee or level of authority for final decision
   • Loan applications of clients are recommended for approval/disapproval in accordance with MFI standard operating procedures and guidelines
   • Documents are processed in accordance with MFI standard operating procedures
3. Monitor loan utilization
   • On-the-spot client visits are conducted according to MFI policies and standard operating procedures
   • Accomplished Loan Utilization Check (LUC) forms and attachments are randomly checked against the project proposal
4. Monitor implementation of other products and services
   • Client insurance, mandatory savings and withdrawals are monitored and verified simultaneously with loan payment based on loan payment matrix
   • Corrective actions are made in cases of non-compliance or deviation of loan officer/s from target in accordance with the MFI policies and standard operating procedures
   • Work plan is formulated to motivate clients to increase savings in accordance with the MFI overall work plan
   • Business development assistance is provided and promoted to clients based on client’s needs and market situation
5. Communicate management’s plans and decisions
   • Management plans and decisions are discussed with concerned personnel in accordance with MFI policies and procedures
   • Communication process is effectively carried out using appropriate media/channels

UNIT OF COMPETENCY : MONITOR PROGRESS OF WORKPLAN IMPLEMENTATION
UNIT CODE : HCS341303

This unit of competency covers the knowledge, skills and attitude required to monitor the progress of work plan implementation in the microfinance workplace setting. This measure the team leader/supervisor’s role in monitoring the loan officer’s implementation of the workplan based on targets and outputs.

1. Check budget allocation for loan releases
   • Cash position is checked/monitored based on bank statement accounting report and monthly target releases
   • Fund transfer is requested from head office in case of insufficiency of funds in accordance to MFI policies and procedures
   • Loan documents are reviewed/verified for budget allocation in accordance with MFI policies and procedures
   • On-time loan release is ensured based on standard schedule set by the MFI
2. Monitor subordinates’ adherence to work plan
   • Increased awareness of subordinates’ performance target is ensured or maintained based on set target
   • Subordinates’ output is reviewed/compared with the set target using appropriate monitoring tools
   • Problems and difficulties are analyzed using appropriate analytical methods
   • Targets vs. outputs are discussed during team meetings using effective communication skills
   • Corrective actions in the workplan are agreed and implemented in accordance with MFI policies and procedures
3. Submit recommendations for work plan improvement
   • Consultation is made with loan officers, clients and stakeholders to gather data for plan modification requiring higher level management decision based on MFI policies and procedures
   • Recommendation are formulated and submitted to immediate superior based on MFI policies and procedures
   • Options are identified based on the validated data

UNIT OF COMPETENCY : EVALUATE AND SUPPORT STAFF PERFORMANCE
UNIT CODE : HCS341304

This unit of competency covers the knowledge, skills and attitude required in evaluating the work performance of loan officers in the microfinance workplace setting. This unit measures the role of the team leader/supervisor to appraise the performance of loan officers and recommend appropriate support.

1. Appraise the Performance of loan officers
   • Loan officers are oriented on the work targets and other basis of the performance evaluation
   • Loan officers are oriented on how to accomplish Performance Evaluation Form based on MFI performance evaluation guidelines
   • Files, books, records of clients, and practices of loan officers are random checked for quality of work based on MFI procedures and guidelines
   • Summary of loan officer’s on the job performance evaluation results is used as basis for the recommendation in accordance with MFI performance evaluation policies and procedures
2. Act on evaluation recommendations
   • Loan Officer is provided with counseling and coaching to improve performance in accordance with MFI policies and procedure
   • Performance Evaluation results and recommendations are forwarded to BM for approval
3. Motivate loan officers
   • Facilitated the provision of material resources necessary in enhancing performance of loan officers in field works in accordance with MFI procedures and guidelines
   • Positive-stroking strategies are identified and implemented to motivate Loan Officers in accordance with MFI practices, procedures and guidelines
   • Awards and incentives are recommended for deserving Loan Officers who performed within or above performance standards in accordance with MFI policies and procedures

COMMON COMPETENCIES

PROVIDE QUALITY CUSTOMER SERVICE (HCS421201) – This unit covers the knowledge, skill and attitudes
required to provide effective and efficient services to the clients of the microfinance industry.

1. Update knowledge of products and services
   • Products and/or services to be marketed are identified, familiarized with and fully understood
   • Information on programs is accessed
   • Knowledge on products, services and programs are updated
   • Additional information on products, services and programs are prepared
2. Assess needs of new and existing clients
   • Active listening is used to gather information from clients
   • Orientation on products/services, program and policies are conducted Identified related or applicable needs of clients based on the products/services and program being offered
   • Provided clients with courteous and professional treatment throughout the interaction using interactive communication
   • Inquiries, concerns and comments are responded to promptly and accurately in accordance with organization’s policies
   • Recorded all the gathered information given by the clients
3. Conduct client satisfaction survey
   • Client satisfaction survey is administered
   • Survey results are collated and analyzed
   • Positive and negative results are defined
   • Negative feedbacks are well addressed immediately through appropriate communication strategies

COMPLY WITH QUALITY AND ETHICAL STANDARDS (HCS315202) – This unit covers the knowledge, skills and attitudes needed to apply quality and ethical standards in the workplace. The unit also includes the application of relevant safety procedures and regulations, organization procedures, client and industry requirements.

1. Assess quality of received materials
   • Client satisfaction survey is administered
   • Survey results are collated and analyzed
   • Positive and negative results are defined
   • Negative feedbacks are well addressed immediately through appropriate communication strategies
2. Assess own work/output
   • Documentation relative to quality within the company is identified and used
   • Completed work is checked against workplace standards
   • Defects are identified and corrected in accordance with the company quality standards
3. Submit oneself to third party assessment
   • Information on the quality and other indicators of performance are recorded in accordance with workplace procedures
   • In cases of deviations from specific quality standards, causes are documented and reported in accordance with the workplace’s standards operating procedures
   • In cases of objections/disagreements, reasons are expressed thru written documentation
   • Settlements are sought in accordance with company policies
4. Engage in quality improvement
   • Process improvement procedures are participated in relative to workplace assignment
   • Work is carried out in accordance with process improvement procedures
   • Services are delivered in accordance with ethical standards
   • Quality service is monitored to ensure client satisfaction
   • Client’s needs are assessed through conduct of researches, focus group discussions, and satisfaction surveys/interviews
   • Trainings, orientations, and exposures are their understanding/familiarization on products, services and programs

UNIT TITLE : PERFORM COMPUTER OPERATIONS
UNIT CODE : HCS311201

This unit covers the knowledge, skills, attitudes and values needed to perform computer operations which include inputting, accessing, producing and transferring data using the appropriate hardware and software.

1. Plan and prepare for task to be taken undertaken
   • Requirements of task are determined in accordance with the required output.
   • Appropriate hardware and software are selected according to task assigned and required outcome.
   • Task is planned to ensure that OH & S guidelines and procedures are followed.
   • Client -specific guidelines and procedures are followed.
   • Required data security guidelines are applied in accordance with existing procedures.
2. Input data into computer
   • Data are entered into the computer using appropriate program/application in accordance with company procedures.
   • Accuracy of information is checked and information is saved in accordance with standard operating procedures.
   • Inputted data is stored in storage media according to requirements.
   • Work is performed within ergonomic guidelines.
3. Access information using computer
   • Correct program/application is selected based on job requirements.
   • Program/application containing the information required is accessed according to company procedures.
   • Desktop icons are correctly selected, opened and closed for navigation purposes.
   • Keyboard techniques are carried out in line with OH & S requirements for safe use of keyboards.
4. Produce output/ data using computer system
   • Entered data are processed using appropriate software commands.
   • Data are printed out as required using computer hardware /peripheral devices in accordance with standard operating procedures.
   • Files and data are transferred between compatible systems using computer software, hardware/peripheral devices in accordance with standard operating procedures.
5. Use basic functions of a www-browser to locate information
   • Information requirements for internet search are established.
   • Browser is launched.
   • Search engine is loaded.
   • Appropriate search criteria/or URL of site is entered.
   • Relevant links are followed to locate required information.
   • Useful pages are bookmarked or printed as required.
6. Maintain computer equipment and systems
   • Procedures for ensuring security of data, including regular back-ups and virus checks are implemented in accordance with standard operating procedures.
   • Basic file maintenance procedures are implemented in line with the standards operating procedures.

BASIC COMPETENCIES (24 Hours)

UTILIZE SPECIALIZED COMMUNICATION SKILLS (500311115) – This unit covers the knowledge, skills and attitudes required to use specialized communication skills to meet specific needs of internal and internal clients, conduct interviews, facilitate group of discussions, and contribute to the development of communication strategies.

1. Meet common and specific communication needs of clients and colleagues
2. Contribute to the development of communication strategies
3. Represent the organization
4. Facilitate group discussion
5. Conduct interview

DEVELOP TEAMS AND INDIVIDUALS (500311116) – This unit covers the skills, knowledge and attitudes required to determine individual and team development needs and facilitate the development of the workgroup.

1. Provide team leadership
2. Foster individual and organizational growth
3. Monitor and evaluate workplace learning
4. Develop team commitment and cooperation
5. Facilitate accomplishment of organizational goals

APPLY PROBLEM SOLVING TECHNIQUES IN THE WORKPLACE (500311117) – This competency covers the knowledge, skills and attitudes required to apply the process of problem solving and other problems beyond those associated directly with the process unit. It includes the application of structured processes and improvement tools. This competency is typically performed by an experienced technician, team leader or supervisor.

1. Analyze the problem
2. Identify possible solutions
3. Recommend solution to higher management
4. Implement solution
5. Evaluate/Monitor results and outcome

COLLECT, ANALYZE AND ORGANIZE INFORMATION (500311118) – This unit covers the outcomes required to process,
analyze, interpret and organize workplace information and other relevant data.

1. Study information requirements
2. Process data
3. Analyze, interpret and organize information gathered
4. Present findings/recommendations

PLAN AND ORGANIZE WORK (500311119) – This unit covers the outcomes required in planning and organizing work. It may be applied to a small independent operation or to a section of a large organization.

1. Set objectives
2. Plan and schedule work activities
3. Implement work plans
4. Monitor work activities
5. Review and evaluate work plans and activities

PROMOTE ENVIRONMENTAL PROTECTION (500311120) – This unit covers the knowledge, skills and attitudes required
in adhering to environmental protection principles, strategies and guidelines

1. Study guidelines for environmental concerns
2. Implement specific environmental programs
3. Monitor activities on environmental protection/programs

DEFINITION OF TERMS

• Microfinance – The provision of the broad range of financial services such as – loans, savings and other non-financial services such as microinsurance and capacity building programs for the poor and low income households to assist their micro-enterprises so as to enable them to raise their income levels and improve their living standard.
• Clients Borrower or individual who availed loans which includes active, resting and savers.
• Loan/credit Major service of the microfinance institution being rendered to interested entrepreneurial poor.
• Savings Refers to Capital Build-Up (CBU), Savings Build-Up (SBU) which is either compulsory or voluntary (money set aside by the client for emergency and additional capital purposes which is kept in the MFI)
• Passbook Client’s document that shows their financial transactions with the MFI
• Registers Books where all financial transactions and other information about the client are recorded
• Center/Group/Cluster – Refers to an assembly of clients where the microfinance products and services are provided
• Center/Group/Cluster/ Meeting Refers to an activity conducted regularly/periodically such as collection of dues, dissemination of information and some topic.
• Potential Area Refers to a location where the formation of center/group/cluster is possible.
• Past Due uncollected payments
• Sit-down refers to a strategy of collecting past dues from a delinquent client by literally sitting down in the client’s premises(e.g., house or business location) and waiting for the payment
  Abbreviations:
• CCI Character and Credit Investigation
• BI Background Investigation
• MFI Microfinance Institution