German firm targets
Saccos with online banking application software
By Jackson Okoth
German software
company, Mambu, has set base in Kenya with the launch of an online banking
platform that promises to transform bookkeeping in Saccos. The application takes
advantage of mobile and tablet technology to provide a reliable financing
option for micro-lenders, small business owners as well as individual
borrowers.
The firm has
partnered with AllenHark Group — which comprises companies holding various
interests in telcos locally — in a Sh3.2 billion deal. The agreement will make
AllenHark a partner in efforts to step up technology innovation in East Africa.
Mambu, which has a
20-year experience in banking targets the emerging markets with its
application that automatically audits accounts and keeps the records online.
Mambu co-founder and
chief operating officer, Mr Frederik Pfisterer, said they are setting their
sights on merchants, who mostly bank with Saccos and microfinance institutions.
Already, the
platform is used by over 100 financial institutions in close to 30 countries.
“We are excited
because our focus is to reach over one million unbanked in rural areas, who
have prospects of saving with Saccos. Kenya provides a
thriving market for us,” said Mr Pfisterer.
RELIABLE FINANCING
Kenya is the starting point of Mambu’s business in Africa. It plans to expand to Uganda,
Tanzania and Rwanda where Internet penetration is widespread.
The software, known
as ‘banking 3.0’ is hosted in the cloud system. It offers fully auditable
accounts for Saccos and microfinance institutions.
Mambu manages the
software while AllenHark connects it to telecommunication companies for ease of
transactions via mobile money systems.
Saccos, banks and microfinance
institutions would access the system and use it to track bookkeeping.
The software uses
social media to determine whether or not a customer is creditworthy. This is
likely to be a boon to millions of borrowers, who have no collateral for a loan
or mortgage.
It is expected that
microfinance and Saccos, which will use the platform, will expand their loan
books.
The application
takes advantage of mobile and tablet technology to provide a reliable financing
option for micro-lenders, small business owners as well as individual
borrowers.
Through the system,
loans will be disbursed and repaid using the M-Pesa platform. In case of system
outages, the platform is hosted by a mobile application on Android, which acts
as a temporary backup.
Speaking during the
launch in Nairobi last week, KPMG consulting director, Mr Joseph Muga, said the
service is flexible and would enhance banking for merchants because they make
monthly contributions using their mobile phones.
“It has reliable
speed at scalable costs and will be revolutionary, especially in the rural
areas” noted Mr Muga.
He said the platform
has a Global Positioning System that allows Saccos to know all their customers
and their locations. This enables Saccos to improve their services.
In future, Mambu
plans to enhance its services to combine community-based microfinance
techniques with social media data to help the unbanked and under-banked obtain
loans.
The focus is to push
Saccos to use data on social media to understand the market and offer more
affordable credit, while adhering to the sector’s stringent regulations.
Saccos have been
focusing on reducing payouts to members to raise cash to maintain a core
capital of Sh10 million, which is a regulatory requirement.
Many Sacco members
have in return gone for better banking options.
