case study: adarsh credit co-op
IBS Journal January 2016
SAP ASAP
India-based Adarsh Credit Co-operative Society has been a pioneer with its implementa- tion of almost wall-to-wall SAP software, including for channels and core transformation. The roll-out has been fast and smooth, with the institution reaping the benefits, particu- larly in its push to aid financial inclusion in the country.
There are a number of stand-out aspects to the transformation project that Adarsh Credit Co-operative Society has been going through. First, it opted for a set of systems that were unproven in its domestic Indian market, with these sourced from SAP. Second, the implementations were done with remarkable speed (not something SAP’s projects tend to be known for) and is now successfully live. One of the largest credit co- operative
societies in India, Adarsh was using a low- end domestic core transaction system, OmniEnterprise from Infrasoft Technologies. This type of financial institution is important
in India, accounting for around 46% of rural credit and with strong backing from the government as a part of its financial inclu- sion push (its ‘People Money Scheme’ which is intended to reach the 41% of households that don’t currently use banking services). The credit co-operatives have a presence in 67% of Indian villages and more than 200 million members between them. Adarsh itself had grown rapidly and
has a strong, proactive stance when it comes to financial inclusion. It was set up in 1999 in the state of Rajasthan, was granted multi-state status in 2008 and had reached 199 branches by March 2011. Today it has just over 800 branches. It has around 1.5 million members/customers, 3000 staff and net profit in 2014-15 of $32.5 million. The rapid growth was a key reason for the need to transform. It had implemented OmniEn- terprise in 2010 but was looking for a more scalable platform, says managing direc- tor, Rahul Modi, which would deliver faster time to market for products, real-time pro- cessing and multi-channel integration. While SAP did not have any users of
its banking software in India, its Indian resources were doing a lot of its projects around the globe, says Modi. Its platform was felt able to meet the Adarsh’s criteria and the supplier was deemed to be com- petent. Moreover, critically, it was the only one to commit to deliver within 18 months. However, this enthusiasm from SAP was not there at the outset, with the society
36 © IBS Intelligence 2016
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