New banking platform for MFIs in Nepal
Nepalese MFIs invest in a new shared core banking platform
34 microfinance entities in Nepal have joined forces to set up a fintech company – Nepal Finsoft – to build and maintain a shared core banking platform.
The project is supported by the Nepal Microfinance Bankers’ Association. The investment and technical support has come from UK Aid, via its Sakchyam Access to Finance Programme.
The new platform will be centralised, with Nepal Finsoft hosting it. MFIs will be running the platform on an outsourced basis.
A local IT firm, Puresoftware, will provide the technology.
Go-live is scheduled for April 2017.
Sakchyam says the new platform “will allow uniformity in information”, which in turn will increase efficiency and improve customer service. Also, it will lower the overall costs of running the platform, as these will be shared by the participating MFIs.
Awesome to know 34 microfinance entities in Nepal joining forces to set up a fintech company.
Financial technology and digital payment in Nepal is rising more than ever. Though there are various challenges, from user adoption perspectives as well as regulations from the government, it is being increasingly used by all.