Top 5 Core Banking Solutions for MFIs in Africa

If you are running a microfinance organisation in Africa, you must be facing limitless challenges. You may have already considered adapting to a core banking solution (CBS) to overcome the challenges. If so, and we are right, you must have asked yourself or a friend about the region’s best Core Banking Solution for MFIs.

Well, you are not alone; thousands of MFI owners are on the same boat, asking the same question. So, we will help you with the ultimate list of the best CBS for African MFIs. Let’s find out!

Microfinance institutions (MFIs) play a vital role in providing financial services to underserved communities across the continent. But to run the operation smoothly, MFIs need robust core banking solutions that can streamline their operation for maximum output.

Africa has a diverse population with a unique economic landscape. Thus, it’s crucial for MFIs to have the right tools at their disposal. That’s where core banking solutions come into play in today’s microfinance ecosystem. CBS systems are the backbone of the operations, helping them manage loans, deposits, customer information, etc., more efficiently.

But it takes a lot of work to choose the right tool. And this is where entrepreneurs suffer from their dilemma.

Don’t worry; we’ve researched the microfinance technology landscape and listed the “Top 5 Core Banking Solutions for MFIs in Africa.” These solutions are the workhorses that enable MFIs to serve their clients effectively, whether in bustling cities or remote villages.

Keep reading this blog, clear all your doubts, and make the life-saving decision for your microfinance to thrive. Let’s see who made it to the list!

Top 10 Core Banking Solutions for MFIs in Africa

Before we proceed with the list, we would like to remind you that there are many other good core banking solutions in the market with the potential. However, according to our research, the solutions listed below are worth adding to this list. Let’s see what are they!

1. Ascend Financials – Southtech Group

Ascend Financials is one of the 5 best Core Banking solutions for MFIs in Africa. It is a cloud-based software built by Southtech Group, and it is one of the first software dedicated to the Microfinance industry to hit the market. Until now, it has served a number of MFIs around the world, including in Bangladesh, Myanmar, the Philippines, Uganda, and Kenya.

We are sure you already know about BRAC, the largest microfinance organisation in the world; guess what? BRAC used Ascend Financials for 2.5 decades and was AFS’s first user. Throughout its journey with BRAC, AFS automated 3000+ branches and saved $11 million annually. RDRS Bangladesh, Northern EZCredit Lending Corporation-Philippines, and PGMF-Myanmar are a few of its clients as well. Furthermore, it also serves the African market, having clients in a few countries on the continent.

When it comes to features, AFS is one of the most advanced microfinance solutions in the world built in Modules. The modular-based architecture makes the solution more accessible, flexible, and affordable for microfinance organisations. Interestingly, no matter how big or small your Microfinance is, you can still integrate this software according to your needs. Among its features is business intelligence software that helps MFIs analyze data and make informed decisions.

A flexible repayment and loan disbursement system helps microfinance institutions increase their repayment rates. You can easily integrate mobile banking, agent banking, and other payment facilities. Moreover, AFS has an extensive borrower evaluation system that helps MFIs reduce fraud, which significantly helps you increase your profit.

So, if you are looking for a Core Banking Solution, Southtech’s Ascend Financials can be the one.  

2. Mambu – Mambu Software Company

After AFS, Mambu is one of the 5 best Core Banking Solutions for MFIs in Africa. Cloud-based core banking solution for MFIs. This software is a good tool known for its exceptional flexibility and scalability. Its unique features enable financial institutions to swiftly adapt to changing market demands, offering customisable products, such as loans and deposits, and seamless integrations with other financial tools.

Mambu has a cloud-native lending engine called “Honeycomb,” which empowers financial and non-financial institutions to swiftly launch and diversify lending products using low-code/no-code APIs. It also helps you easily modernise your lending portfolio, expand into new markets, and optimise your lending business with ease. Benefit from our scalable, cloud-native SaaS model and multi-cloud compatibility through “cloud with cogs.

Thanks to its agile architecture, it extends its reach to underserved populations, making it an ideal solution for microfinance. This cloud-based system also ensures cost-efficiency, security, and regulatory compliance, empowering financial institutions to thrive in an ever-evolving financial landscape.

3. Oradian Core Banking Solution – Oradian

On our list, Oradian comes third among the 5 best core banking Solutions for MFIs in Africa. It is a tailor-made system that delivers exceptional performance to a diverse range of financial institutions across Southeast Asia and sub-Saharan Africa. This cloud-native solution operates in 12 countries.

Oradian offers a specialised, cloud-native core banking system optimized for financial institutions, including Microfinance in emerging markets. However, it is a good fit for big organisations only.

This advanced cloud-native system helps you integrate with your business through APIs, providing automation for lending, risk management, scoring, accounting, compliance, messaging, reporting, and more. You can extend your product offerings and enhance customer experiences using the extensible core system.

The system is fully configurable and can be immediately deployed. Like Southtech’s Ascend Financials, you can choose to implement the core modules most relevant to your MFI or create custom services.

4. Musoni Core Banking Solution – Musoni System

Musoni is a cloud-based microfinance software that focuses on promoting financial inclusion in Africa. It provides efficient loan and savings management tools, integrates with mobile banking solutions, and ensures reliable data analytics. Musoni’s emphasis on technology and data-driven decision-making makes it a valuable asset for microfinance institutions in the region.

It’s hosted on AWS, a cloud platform that eliminates worries about storage, server maintenance, and backups. With Musoni, there’s no need for expensive upfront hardware investments or ongoing maintenance costs.

Musoni is known for its advanced features which empower MFIs to operate with ease. Among its features is a good client and group management facility that helps you easily handle individual and group clients. It also has integrated accounting, reporting, and credit checking options which improves loan decisions. Social performance measurement is another feature that might help you understand the impact of your effort.  

Simply put, Musoni simplifies your MFI operations while keeping pace with the demands of the digital age, making it an excellent choice for financial organizations in Africa seeking growth and efficiency.

5. Temenos Banking Cloud – Temenos

Last but not least, Temenos Banking Cloud is one of the 5 best core banking solutions for MFIs in Africa. It is one of the most renowned SaaS-based solutions in the financial services sector and offers significant advantages for the microfinance industry.

For microfinance organizations, it is good, especially for risk management, data integrity, regulatory compliance, and robust security; Temenos stands as a reliable choice for African MFIs.

This versatile platform enables microfinance institutions to access a broad array of market-leading banking capabilities, ensuring the creation of exceptional customer experiences. With a focus on rapid innovation, Temenos empowers MFIs to introduce new services and features with remarkable speed, leveraging embedded technologies like explainable AI.

Temenos supports progressive modernisation, allowing microfinance institutions to manage existing technology portfolios and transition to the cloud seamlessly. The platform’s extensibility empowers microfinance organisations to customise their operations, and its pre-assembled banking services streamline the introduction of new services to clients efficiently. For MFIs, Temenos offers a robust foundation for growth, compliance, and innovation.

The above are the top 5 Core Banking Solutions for MFIs in the African market. If you are running a microfinance in the African region, this list might help you choose the right one for you. But before you decide to adapt to one solution, make sure you check all of these carefully and choose the one that fits your bill.