Chiou Hao Chan, Mambu Managing Director, APAC.

Mambu, the SaaS banking engine, today announced it will be powering the consumer and business lending products of Fuse, the lending arm of Filipino financial technology firm Mynt, by September 2017.

Launched in 2015, Mynt is a subsidiary of Philippine telecom company Globe Telecom which has a customer base of over 60 million. Mynt is increasing access to financial services through mobile money, micro-loans and technology by leveraging the mobile and store networks of its partners and the parent company in a country with 113% mobile penetration but only 31% banking penetration.

Mynt launched its lending business, Fuse, in 2016 to address the credit vacuum in the Philippines. Micro, small and medium enterprises (MSMEs), which account for 99.6% percent of total registered companies in the country, as well as individuals face significant difficulty in accessing credit from incumbents due to stringent credit control, limited authentication documentation and lack of collateral.

John Rubio, President and CEO of Mynt said: “Most Filipinos do not have a credit history on which future financial transactions may be based. This, in turn, leads to poor access to legitimate credit facilities and proliferation of informal lenders. Through Fuse, we are changing this scenario in order to provide financial services in a non-traditional manner that will benefit the majority of our population who are unbanked.”

“Mambu understood our vision and is enabling us to rapidly create and launch, and service tailored products that address the local market needs,” said Anthony Thomas, President and CEO of Fuse. “In Mambu we have found the right partner to accelerate and scale our lending business, as well as power innovative and secure consumer and business loan products”.

The solution will allow Fuse to overcome some of the challenges specific to the Philippines by configuring them specifically for the market.

“Mambu’s SaaS model provides Fuse with a best-in-class solution which benefits from continued enhancements and requires a little resource to maintain,” said Thomas. “We will be able to scale, integrate with the latest technologies and be ready to manage the significant transaction volumes we anticipate.”

“Leveraging the agility of the Mambu SaaS banking engine we will enable Fuse to provide innovative and much-needed loan products to Filipino businesses and consumers,” said Chiou Hao Chan, Mambu Managing Director, APAC.  “Mynt is in an ideal position to disrupt the market and meet consumer demand for convenient and safe digital lending. We anticipate an increasing number of telcos and third-party providers in APAC will move into the financial services market and look forward to supporting this shift.”

International disruption can only grow

Globally, telcos are starting to allying with banks. In India, telcos are already begun partnering with banks. Airtel M Commerce has partnered with Kotak Mahindra Bank, RIL has joined hands with State Bank of India (SBI) and Vodafone m-pesa was launched over three years ago in collaboration with ICICI Bank.

India’s largest private telco Bharti Airtel’s unit Airtel M Commerce Services recently bought a banking licence and so has Vodafone m-pesa, which is a unit of India’s second-largest private telco Vodafone India.

In December 2010, Turkey’s Avea Iletisim Hizmetleri AS (Avea) partnered with Garanti Bank to launch a commercial near-field communication (NFC) service in Turkey. In October 2011 Citigroup and America Movil got together for a $50 million banking joint venture called Transfer to explore opportunities in mobile payments and banking in Latin America.

Rogers Bank is a subsidiary of Rogers Communications, one of  Canada’s largest mobile carriers, became a Canadian Schedule I bank in May 2013. RBI has allowed payments banks in India to issue ATM and debit cards but not credit cards. They can accept cash deposits, permit remittances and roll out “simple financial products.”

These are not just isolated incidents – they are the precursors of a bigger, wider trend which is developing internationally.

 

 

by Bill Boyle
IBS Intelligence Senior Editor
imp-loader
preloader