Finastra is committed to innovation and advancing its open cloud platform strategy, aiming to positively impact nine million lives globally while addressing significant issues such as the SME funding gap, inequalities in financial services, and financial exclusion.
Despite notable progress in reducing the number of unbanked or underbanked individuals worldwide—estimated at 1.7 billion—it remains clear that employment and empowerment are among the most effective means to alleviate poverty.
In Kenya, Finastra has introduced Trust Machine, a microfinance initiative designed to close the $19 billion SME funding gap. With the support of partners such as GreenPoint Financial, the University of Leeds, ETH Zurich, Straterix, and ConsenSys, Trust Machine delivers solutions for loan facilitation and balance sheet optimization. The initiative seeks to reduce the funding gap by 1% in every country it engages with, potentially generating 50,000 new jobs and fostering sustainable economic growth.
This approach not only supports the SME sector but also enables fintech companies to customize components and develop business lending applications. These apps can cater to broad customer bases or target specific objectives, such as promoting female empowerment, healthcare advancements, or energy solutions.
In Bangladesh, Finastra’s digital offerings are empowering institutions like IFIC Bank to provide five million individuals access to financial services through their Aamar account program.
As the uncertainty brought on by the COVID-19 pandemic continues, technology providers are under pressure to adapt swiftly. For instance, powered by Finastra’s Fusion Cash Management, Ecobank has established a cross-border payment and cash management system that spans 34 countries, processing $75 million in transaction volumes for COVID-19 relief efforts.
In the United States, challenges also persist. A report from UC Berkeley indicates that around 1.3 million purchase and refinance loans were denied to African American and Latinx applicants. To combat this bias in credit decisions, the Vista Global Hackathon 2020 winner, FinEqual, has taken the lead in addressing this critical issue.
Finastra’s core banking platform, Fusion Phoenix, transitioned to the cloud earlier this year, enabling community banks and credit unions in the U.S. to continue supporting nearly a million end-users remotely.
Simon Paris, CEO of Finastra, emphasizes the significance of recognizing the need to "redefine finance for good" amidst unprecedented changes and disruptions. He stated, "Our goal is to assist our customers in navigating this transformation, enhancing the role of financial services to empower millions of individuals, SMEs, and communities. Our technology, workforce, and ecosystem are dedicated to addressing some of the industry’s most pressing challenges, driving open finance, and fostering economic prosperity for all."