The current version of the “QuipuBanking System” was developed by IPC’s IT Department in close co-operation with the financial institutions with which IPC has Management Services Agreements and in which IPC advisers fill key management positions. This ensures that all of the extensions and improvements to the software are 100% geared to the needs of the users, and that changes to the parameters of the bank’s operations are immediately reflected in the appropriate modifications to the software. Furthermore, QUIPU is in close contact with the management of ProCredit Holding, which is setting certain standards for the development of new products and priorities for the implementation of new versions of the software.

QuipuBankware

The opportunities created by new IT development standards and technologies prompted IPC to start working on a new type of software for the head office. QuipuBankware has now superseded the former Accounting Module of the IPC Banking System.

Contemporary standards and tools (UML, RationalRose, MS Developer Studio) were adopted to define, document and develop this software package. QuipuBankware has a modern standard graphical user interface (GUI) and MFC-based screen design. The underlying five-tier system design maximises portability and clarity. There is an integrated online help system, currently available in English, but soon also in Spanish. The technical support and help desk function are covered by qualified employees of QUIPU based in several European countries and Latin America.

As a head office package, QuipuBankware is tailored to the administration, bookkeeping and general accounting requirements of small and medium-sized financial institutions. This software collects and processes data from an institution’s lines of business and posts them to its accounting system. The program allows for a complete range of user-defined configurations, such as the design of a chart of accounts, to suit any institutional format.

QuipuBankware offers very extensive reporting capabilities. Each of the application’s 50+ dialogs can be used to compile sets of filtered information, which can be configured for printing purposes without having to modify the MS SQL database itself. This is achieved by means of an MS Access database, to which the application automatically sends the current content of each dialog. A set of Crystal Report layout files is linked to this Access database, providing templates for printed reports or for exports in pdf format (serving as backups which can no longer be edited). The same information can also be exported to a spreadsheet application like Microsoft Excel or Open Office.

Key features of QuipuBankware:

The following modules of QuipuBankware are currently available:

The Core Transactional Module (“Core Module”) is used both for recording transaction data manually, and for importing records of front-office and back-office transactions recorded in the branches. The Core Module checks the data, stores them safely in the database and makes them available for various financial analyses. In addition, customer transactions relating to small-scale lines of business and back-office operations can be entered directly with user-friendly dialog boxes. Thus, QuipuBankware´s strengths in administration/accounting combine with, and reinforce, the QuipuCustomware´s proven strengths in the front office – a fusion that significantly enhances the functionality of both components.

Accounts used inside the Core Module are referred to as “Internal Accounts” and must be associated with a specific organisational unit (e.g. a branch) and a so-called “Analytical Component”. This structure makes for a high degree of flexibility in the way that data are aggregated when defining and configuring financial reports.

Loan loss provisioning and reserves are handled through a set of bookkeeping entries posted at the end of the month, imported via interface and calculated with the Loan Module of QuipuCustomware.

Example: List of Sub-ledger Entries, Core Module (ProCredit Bank, Romania)

The General Ledger / Bank Accounting Module can be configured to operate on a cash or accrual basis and is user-defined, which means it can be configured to adhere to any accounting standards. The module comes with a predefined Chart of Accounts customised to the banking regulations in a certain country. There is no limit on the number of digits that may be used to define an account code, and no restriction on the levels of sub-accounts used.

Example: Customised Chart of Accounts (ProCredit Bank, Romania)

The Financial Reporting Module includes an integrated Report Toolkit that allows institutions to define, maintain and use as many different Financial Report Structures as they want or need. Thus, revenues and expenses can be tracked by account, branch, product, or other cost centres/sources of profit.

Standard financial reports provided by QuipuBankware in the version customised for each country include a daily listing of transactions, a daily listing of transactions by account, full/summary trial balances, balance sheets and income statements.

Once a report template has been defined and used to generate a report as of a certain value date with a specific set of filter conditions, the same report may be re-generated later, giving exactly the same results. Reports generated by the system on screen can easily be saved as a pdf file (in which format it can no longer be edited) or as a csv file (which can be edited using Excel) for printing or other subsequent purposes.

The most important External Interfaces are those involved in communication with the branches. Through these specially designed interfaces, QuipuBankware´s Core Module automatically imports transaction data from the product-specific modules of QuipuCustomware on a daily basis. In other words, all transaction data are fed directly into the Core Module, without going through an intermediate aggregation stage, which means that they are available for a vast range of analyses and reports, based not only on accounting criteria. Additionally, and depending on country-specific needs, special interfaces will be used for a direct transfer of daily/weekly/monthly reports to be delivered in electronic form to supervisory authorities.

QuipuCustomware

Now:

In the future:

QuipuCustomware has been designed especially for microfinance banks. The software is used to administer loan portfolios, deposit-side operations (savings, time deposits and current accounts) and payment transactions (cheque handling, domestic and international money transfers) no matter if the database is centralised, distributed or decentraliced. Furthermore the system is capable of generating a wide range of standard and customised reports, which make it an invaluable MIS tool. The major strength of QuipuCustomware is that it is fast, efficient, flexible and maintenance-friendly. Its specific features include:

The following modules of QuipuCustomware are currently available:

The Loan Portfolio Management Module (known as the “Loan Module” for short) is a convenient and proven instrument for controlling the small business lending process, applying IPC’s credit technologies. The Loan Module provides the necessary administration and monitoring tools for all stages of the credit cycle – from submission of the loan application to full repayment of the loan. The Loan Module incorporates a powerful report generator which can be used to provide the credit committee and the management of credit departments with all the necessary information about the current status of the loan portfolio at various degrees of differentiation, ranging from bank-wide statistics right down to the level of the individual loan officers. In measuring individual performance in this way, the Loan Module serves as a personnel management tool. A distinguishing feature of the Loan Module is that it stores information not only on current borrowers and loans, but also on all clients that have applied for credit. This allows a credit history to be built up for each client. The Loan Module is used to project future instalments, and automatically issues a warning as soon as a scheduled instalment is missed. This in turn means that the responsible loan officer can take immediate action to prevent the borrower in question from falling further into arrears.

The Loan Module of QuipuCustomware is used to:

Store detailed information on clients and their businesses (including balance sheet data and other financials);
Compile an instantly accessible credit history for every client and every credit case;
Assign each client to a specific loan officer;
Select appropriate terms and conditions for new loans, and generate an appropriate repayment schedule;
Supply the credit committee with a “résumé” of each loan application, containing all data necessary for making decisions regarding collateral and loan amount;
Monitor the status of applications and loans during the processing and disbursement period;
Manage disbursement, collection of instalments, response to arrears, imposition of fines, and changes to the repayment schedule during the life of the loan;
Automatically print out all credit documents (approval and disbursement vouchers, payment documents, agreements, directives, etc.);
Process statistical data based on various criteria;
Configure active lines of credit (interest rates, method of interest accrual, limits to credit amounts and maturities, etc.).

The Deposit & Savings Management Module (“Deposit/Savings Module”) allows accounts of various types to be set up, including savings accounts with or without passbook, time deposits, demand deposits, overdraft accounts, current accounts, and earmarked/blocked accounts. The Deposit/Savings Module also has tax withholding features, with customisable rates and other details.

The Deposit/Savings Module of QuipuCustomware is used to:

Example: Modifying term deposit accounts (MEB Kosovo, now ProCredit Bank)

The Domestic & International Money Transfer Module is used to:

The Foreign Currency Exchange Operations Module

The Client Relationships (Information) Management Module (for short “Client Module”) is used to enter, store and retrieve relevant information on the bank’s clients, which can be located by client name, ID number, account number or contract number. The module is used to:

Example: Registering a legal entity (Test System)

The Cash Box Module is used only by cashiers to:

External Interfaces

The Maintenance Module can be accessed only by IT staff and is used for:

To log into QuipuCustomware, the user enters a code, which appears on the screen as typed, and a password, displayed in neutral characters (e.g. asterisks) to preserve confidentiality. Users can only use QuipuCustomware if their username and password is registered.

Example: “Access Control” option, Microfinance Bank (Philippines)