FairMoney, a credit-based mobile banking platform serving emerging markets in Africa and Asia, has partnered with Oradian, a cloud-based core banking system, to drive the next level of growth and product innovation.
Oradian services over 10 million bank customers, works with more than 50 technology lenders, banks and finance companies in 13 countries in Africa and Asia. Their solution enables customers to manage their bank accounts, conduct 24/7 transactions, make investments and access suitable financing and is tailored to the needs of rapidly evolving markets.
These markets present a unique set of challenges – including the need for compliant financial products tailored to local regulations, the ability to operate in low-bandwidth environments, rapid scaling requirements, and non-stop availability.
FairMoney chose Oradian for three reasons. First, their ability to integrate solutions to these market challenges into their architecture. Second, their ability to support FairMoney’s growing business, unique credit scoring capabilities and product innovation. Third, the plug-and-play nature of Oradian’s solution, which requires little investment in the core backend.
VC investment growth in African startups achieved $2bn (£1.74bn) in 2021, of it US$1bn (£0.87bn) was channelled of fintech companies, which reinforces the demand for a flexible financial infrastructure across the African continent.
Traditional banks have been reluctant to offer unsecured microloans to businesses and consumers, but it is widely recognized that this group has the greatest need and potential for growth.
At the same time, emerging countries in Africa and Asia are hungry for financial services that provide both consumer credit and working capital. This has created a huge opportunity for companies that are able to move quickly and take advantage of recent technological advances in emerging markets, such as B. the switch to cloud banking.
The winners will be those who can quickly and at scale meet the needs of both the individual consumer and the micro, small and medium-sized enterprise (MSME) segments.
FairMoney has successfully implemented this mission: The company became the leading loan-led digital financial institution in Nigeria two years after its inception.
“To be able to quickly innovate with products that the market demands while still complying with changing regulations in very different markets requires a different type of core system.” commented Antonio Separovic, CEO of Oradian.
“All of these are real, everyday back-office challenges that go unnoticed by customers and often taken for granted. However, we know from working with a wide range of financial clients that these challenges are very real and in some cases insurmountable without the right technology and a capable partner.”
Also commenting on the development, Laurin Hainy, CEO of FairMoney said:
“Bridging the financial inclusion gap in emerging markets remains our ultimate goal and we understand the power of collaboration and partnership to make this happen.
“Since FairMoney was founded, we have continued to serve our current markets with excellent financial products, providing much-needed access to credit and making basic banking services available for everyday life.
“We chose to partner with Oradian to leverage their existing infrastructure and proven system performance to scale our solutions to new markets where needed and to perfect existing offerings in our current markets.