|ASA Microfinance (Tanzania) Limited has its own model of microfinance services which is called “ASA Cost Effective Microfinance Model”. The model has affordable microfinance solution for poor men and women who wants to engage with income generating activities and who wants to broaden current status of business.
The delegation of authority to field level (branches) and minimum administrative tiering ensure an active participation of all staff, continuous monitoring, quick decisions making and an efficient management of funds.
All operations are standardized – from loan disbursement and repayments to record keeping and accounting procedures. Cash flows become predictable and overhead costs are minimized. A transparent and easy to understand manuals complements this to enable the rapid expansion of the operations
The office also serves as accommodation for the staff. This allows staff to be deployed away from their residence and therefore security becomes a reduced concern, since all staff ensures the well- functioning of the Branch and the safety of the funds left in the office overnight.
Accounting, bookkeeping and reporting are completed through pre-designed formats available for all branches following the ASA model. This non-conventional system is easy and transparent which allows for the loan officers simultaneously to be an accountant, cashier and office assistant.
There are three mid-level layers of management in the field that supervise and monitor the respective areas
The staffs live and work together, supervising each other and ensuring the branch has the best performance. Furthermore, clients are visited in the groups and individually. Therefore, problems and needs of the clients are quickly identified and changes in the rules, procedures and regulations are rapidly shared and put in practice