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.
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