Consultant - Bank Conversion
PRASAC Microfinance Institution (PRASAC) is the largest MFI of Cambodia. PRASAC has a nationwide network covering all 24 provinces through 150 outlets. Its total assets amount to around US$ 160 million and the institution employs around 1700 staff. PRASAC enjoys
strong support from its foreign shareholders: BIO, Dragon Capital, FMO and Lanka Orix Leasing. In 2011 PRASAC adopted a new strategy that is focused on growth, expansion and conversion into a commercial bank.
Currently PRASAC offers various types of individual loans and also started to mobilise deposits, and on a small scale it pilots insurance policies. When converted to a commercial bank, it is expected that PRASAC will be licensed to run additional business lines such as business loans to SMEs, trade finance and consumer credit.
The policies, procedures and structure for these new business lines will need to be developed and in place at the time of conversion. Much focus will need to be placed on Management Control and supporting IT systems, as well as on upgrading the operating level of existing staff in managing and selling products under the new business lines. Further focus will be on
recruitment of staff with relevant banking experience.
The conversion is anticipated to materialise during the second half of 2013.
The development of the new business lines and further strengthening of PRASAC's Management Control (Risk Management, ALM, Finance, Audit, Operations) will need around 12 months of intense effort from Management. Incumbent management is very experienced in micro finance and quite successful in growing that franchise, but they have limited exposure to commercial banking in accordance with international best practices. It is therefore foreseen by BoD that Management will be helped by hands-on support from an experienced
The main objective of the role of the on-the-ground advisor to PRASAC is to assist the CEO and other senior management in their efforts to prepare themselves and the institution to take on the functions of a Commercial Bank by the second half of 2013. The critical measure of
success of the consultancy is the undoubted capacity and readiness (as judged by the Board of Directors) of the Institution, its systems and the Leadership, to commence operations as a Commercial Bank, by the close of the consultancy assignment.
Scope of Work
The work can be divided into 3 phases:
Phase I - Design:
Finalise the draft Bank Transformation - Action Plan including the related time
planning and assignment of responsibilities.
Design a new business model (or "Blue Print") of the banking option, including human resource planning, systems, distribution and products.
Develop an indicative set of financial projections including balance sheet, profit & loss account and capital expenditure.
Compared to the current situation, identify the changes and institutional development needs for each aspect of the new business model and draw up a plan for its development.
Phase II - Development:
Offer hands-on advice and support to Management and conversion team at Head Office and in the branches with each of the development action points in the Action
Plan. Focus on:
o Development of new products & business lines, for instance business loans to SMEs, Trade Finance, Consumer Credit and Payments.
o Management Control: risk, ALM and finance
o Operations: manuals, procedures, forms, work flows, IT support systems
o HR Development: training programmes, management development, recruitment
o Marketing: branding, sales management, service quality, corporate social responsibility, strategic alliances
o Capacity Building: transfer of management skills and general banking knowledge
Phase III - Implementation:
Oversight and monitoring of the conversion team’s progress of rolling out the implementation of the new business model.
Guidance of the conversion team during the implementation of the new business model, without conflict with direct superiors.
Introduce a Project Management methodology and possibly establish a "Project Management Office" that will ensure adequate management of all bank-conversion related initiatives that go across divisional boundaries: planning of resources, budgeting, prioritisation, procurement and implementation.
The Consultant reports to and operates in close collaboration with the CEO and submits a monthly progress report to the BoD.
Terms of Engagement
The assignment is anticipated to commence on 1 September 2012 and will initially be for 12 months. In principle the Consultant's involvement is expected to be on a full time basis or near full time basis.
Please contact Mr. Senacheert Sim, President and CEO, for additional information.
Mobile: +855 16 908 508
Office: +855 23 22 17 22