Nelito gains Myanmar microfinance win
India-based low-end core banking system provider, Nelito Systems, has won a deal from Alliance for Microfinance in Myanmar, reports Martin Whybrow.
The CEO cites the “emerging digital landscape” in the country as one reason for the selection.
The MFI’s CEO, Kim Guenkel, cites the “emerging digital landscape” in the country as one reason for the selection. Alliance is seeking rapid growth and the new software is intended to provide “better and faster service at lower transaction costs”.
Today, over 90% of Myanmar’s population has a mobile phone, compared with 10% in 2014. However, the economy continues to function almost exclusively in cash, mainly due to a lack of trust in the banking system combined with the inaccessibility of services, so there is a big push for financial inclusion.
Nelito is targeting the South East Asian microfinance market and sees opportunities as well in Cambodia, Indonesia, Vietnam and the Philippines. Founded in 1995, Nelito claims more than 400 banks and financial services organisations across 20 countries as clients, although the bulk of its users to date are in its domestic Indian market.
Alliance was founded in 2014 in Mandalay and now serves over 150,000 farmers, micro- and small businesses in central Myanmar. It has taken Nelito’s FinCraft core system plus the FinCraft Mobile Loan Origination and Mobile Banking Solution.
