JICA adopts Finastra’s Loan IQ for private-sector finance

By Vriti Gothi

The Japan International Cooperation Agency (JICA) has gone live with Finastra’s Loan IQ platform, marking the first-ever deployment of the solution in Japan. The initiative represents a major step in modernising JICA’s core systems for its expanding Private-Sector Investment Finance (PSIF) operations. Implemented in partnership with IBM Japan, the new platform provides JICA with a scalable, flexible and globally compliant foundation to manage increasingly complex private-sector financing requirements.

JICA’s PSIF scheme provides loans to private projects in developing countries, supporting infrastructure, social development and sustainable growth. With rising demand for private-sector capital in emerging markets, JICA recognised the need for a robust digital foundation capable of managing diverse financial structures while aligning with global standards.

Loan IQ delivers full lifecycle management of international loan transactions, from origination and approvals to disbursement, fee and interest calculations, and repayment. The new system supports multi-currency lending across Japanese yen, US dollars, euros, and local currencies, enabling JICA to operate seamlessly across borders while preparing for the future expansion of PSIF.

“We expect that this transformation will strengthen our ability to mobilise private capital for development, and to support increasingly diverse financial structures, enhancing the foundation of JICA’s private sector operations,” said TAKETSURU Eiko, Director of Information System Division 2, Information System Department at JICA.

By embedding Loan IQ at the core of its private-sector finance operations, JICA is positioned to achieve greater operational efficiency, accuracy and flexibility. The platform reduces manual processes, enables adaptable product design, and ensures compliance with global benchmarks providing a reliable and future-ready core system for development finance.

“JICA plays a critical role in advancing sustainable development in emerging markets,” said Andrew Bateman, EVP for Lending at Finastra. “We’re proud that Loan IQ now powers JICA’s private sector lending operations, enabling it to streamline processes and scale impact in line with its mission.”