30th August 2006

ALTERNATIVE OPTIONS

FOR

SOLAR SERVICE DELIVERYSaliya J. Ranasinghe

Options for Service Delivery

Create a Separate Division for Solar Lending

or

Introduce Solar Lending as a New Product within the same portfolio

Conditions for setting up aSeparate Division

New target group Adopt a different methodology for Solar

Lending Identified new locations for Service

Delivery

Conditions for considering solar as a ‘New Product Only’

Same target group Adopt same methodology for Solar

Lending Same locations for Service Delivery Existing capacity not fully utilized

Advantages of ‘New Product Only’

Low operational cost Use of existing network for credit

recovery Easy to market the product using the

goodwill of the institution

Advantages of ‘Separate Division’

Effective Monitoring ( Portfolio Quality) Easy and Quick Decision Making Possibility of creating different systems

and procedures for Solar Lending.

STAFFING NEEDS

Information required for the assessment

What are the current activities undertaken?

What could be the expected level of operations

Volume

Value

Assessment of Present resource availability

Level of competence Skills Knowledge Attitudes Training received Practices available to support internal , external

customer service in terms of -

SPEED PROCESS ACCURACY QUALITY

TYPE OF STAFF REQUIRED will depend on level of operation

Requirement levels FIELD LEVEL – Multi skilled people are required Credit appraisal – To practice convenient mode Customer visited - once or more Credit recovery - Customer visited on the agreed dates. Frequency – weekly/ monthly/ quarterly/ biannual Field supervision -Check on the efficiency of the field operation ,Security , safety, Prevent frauds Manage delinquency - Extensive visits – scheduled - unscheduled

Achieve targets set for the area Carryout credit evaluations on the prospective borrowers, Get the loan documents completed by the customer Ensure that the SHS fixed are in compliance with the project standards , Attend to technical defects ,complaints, Keep the customer satisfaction level

high Achieve desired collection levels , Generate required reports Manage delinquent borrowers with extra care Arrange removal and re -installing

FIELD OFFICER

FIELD SUPERVISOR

Develop good customer relationship Carry out customer education Coordinate with suppliers’ technical officers / Attend to

minor technical faults Prepare itinerary for field visits Maintain log books , field charts Liaison with other organizations, if any Arrange promotional programs Support other team members / Train new members Get familiar with accounting process and documentation Supervise the field

Important Factors to Remember

Design all the operational procedures for the Product

Incorporate the new product with MIS Incorporate with the Staff Incentive Scheme Train all Loan Officers on the New Product Train a Specialized Officer on Solar Product

in each Branch (Training should include Technical Knowledge)

Monitoring

Set targets for lending and recoveries

Show results of the Solar Lending separately in all the reports

Regularly monitor progressProvide feedback to TOP

Management for decision making

Final Recommendation

First mover into Solar Lending the most cost efficient way is to start with a product Only Strategy

When Business grow to graduate into a Separate Division.