Core Banking Software used by Microfinance Banks (MFB) in Nigeria

This article was inspired by comments on a related post written by one of my industry mentors. (https://dejiolowe.com/2016/03/core-banking-software-in-nigeria-2/)

To put this into perspective, a core banking application (CBA) is to a Microfinance Bank what a foundation is to a building. This means MFBs with a comprehensive, automated and effective CBA guarantees profitably, operational efficiency and organizational/customer success.

While the functionalities of CBAs for MFBs have evolved, there still exists significant areas for improvement concerning cost, user experience, integration options for value-added services and service support.

Having engaged and partnered with several CBAs providers for MFBs, I am sharing brief profiles of the key solution providers and the key features of their solutions:

BankOne CBA has grown since its launched by AppZone in 2011 to be a significant player in the MFB sector today. Designed to achieve end-to-end automation the CBA exposes core services to end customers through multiple alternative channels nationwide including ATMs, POS terminals, Internet, Mobile phones, Commercial Bank Branches, and independent agents.

Sagamy CBA provides MFBs with deposit and loan account management, high volume transaction processing capabilities, remote cash center management, agency banking, seamless inter-branch transactions, automated CBN reporting, along with automation of back-office operations such as fixed assets, HR & payroll, shares, inventory/stock, and general ledger financial accounts management.

EazyBank AX from Datalinks is a multi-currency, multi-branch banking application developed around Microsoft Products namely C#.NET, ASP.NET and SQL Server 2008 with modern day cutting-edge 3-Tier architecture. It is deployed to serve as both Windows and Web platforms.

CuteBanker from DynaTech is the ‘King of the north’ as the solution is used by a good number of MFBs in Northern Nigeria. This CBA meets all the requirements and standards for a suitable management information system (MIS) as provided by CBN.

POM CBA is widely adopted by a good number of MFBs in the eastern part of Nigeria. Owned by Super Digital Data Solutions, these CBA modules include – Credit operations (Individual and Group); Uncleared Effects transactions processing; Credit Bureau Report; Payment processing for Local Governments or other Bodies; eBanking, etc.

In a bid to ensure a cost-effective on-boarding of MFBs into a unified national payment system, the Central Bank of Nigeria (CBN) partnered with Inlaks in 2017 to deploy a single core and agent banking solution all MFBs under the auspices of the National Association of Microfinance Banks Unified IT Platform (NAMBUIT)… I believe the jury is still out on whether the set objectives of this initiative are being met.

Core Banking ApplicationCompanyInstalls
BankOneAppzone Limited340
SagamySagamy Limited90
Eazybank AXDatalinks15
POM Core BankSuper Digital Data Solutions40
Cute BankerDynaTech Solutions System120
MaxisoftMaxisoft Solutions100
Vino BankingVira Computers30
Recent BankerFoltoy Computers10
Temenos T24 (NAMBUIT)Inlaks40
PrimeInfosight3
Microsoft Dynamics NAVRealtech Global Frontiers40
Orbit RNeptune Software Group24

A few other solutions are worth mentioning, though they have much fewer live deployments in Nigeria; Banker’s Realm (Craft Silicon); TrustBank (Project Professionals Limited); Instafin (Oradian) and IntergraBanking (Integrated Software Services Limited. This is alongside some custom-built solutions that are live in several MFBs across the country.

On a final note, when considering and evaluating the choice of CBS to adopt for your MFB, ensure to obtain first-hand user experiences from current users. I am also available to engage further.

Note:

This post was originally done by Ifeanyi Duru at https://www.linkedin.com/pulse/core-banking-software-nigeria-microfinance-banks-mfb-ifeanyi-duru-jr/.

Post a Comment

Your email is never published nor shared. Required fields are marked *