Cashing in on Real-time Data and Visibility
Izwe Loans (Pty) Ltd is a specialist financial services company started in 2004, targeting customers in a number of African countries with limited access to traditional banking finance. Izwe has successfully offered unsecured term-loans to clients, with a focus on housing, education and SME loans. Within only a decade, the company has grown into a dynamic, rapidly developed pan-African micro-finance organisation with a digital loans platform in South Africa and a branch network in Zambia, Ghana and Kenya. To date, Izwe Loans has disbursed loans to more than 250 000 customers.
Eugene Du Plessis
Group Treasurer, Izwe Loans
Izwe’s business model is focussed on providing loans quickly in response to the needs of their clients, often with the requirement of making same day pay-outs. In order to mitigate risk, sophisticated online credit scoring models and an integrated debtor management system are employed, to enable same day pay-outs. Accurate and daily financial information is crucial for Izwe. Izwe’s business model requires efficient cash management and credit lines across jurisdictions. Izwe wanted to achieve an efficient risk management and overall treasury solution for all the Treasury transactions including Money Market, Foreign Exchange, Derivatives, Bond and Note issues. In order to achieve efficient risk management and to boost visibility of all deals and calculations, Izwe needed a solution based on real time data that would assist the company to consolidate cash positions in local as well as foreign currencies.
Izwe decided to implement a TMS with SALE, BELLIN’s partner in South Africa. The web-based system was immediately rolled out group-wide – in South Africa, Kenya, Mauritius, Ghana and Zambia – giving access to real time data and enabling Izwe to set up efficient reporting to clients, investors and shareholders. Achieving group-wide visibility and data access was a milestone for Izwe: all intercompany and staff loans in different currencies as well as all FX and MM deals are now automatically imported and represented on one platform. This enables efficient liquidity management and is the basis for effective interest and FX hedging. In addition, Izwe manages data on corporate note programs in Ghana and in Zambia in tm5 providing an overview of all interest calculations, all cash flows, interest payments as well as withholding tax calculations per region. Statements to investors on the deposit and bond program are generated in tm5. With tm5, the treasury team can rely on a tool that consolidates assets and liabilities across the group and enables group-wide visibility based on complete and comprehensive data.
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