Finastra has announced plans around a range of initiatives that will help redefine the future of finance worldwide and will enable its customers to accelerate through change.
The initiatives should create positive outcomes for millions of people around the world and will utilise technology and ecosystem to tackle some of the industry’s biggest challenges, such as SME funding and financial inclusion on financial services. The move is part of the company’s ongoing innovation and open cloud platform strategy.
“2020 has been a year of monumental change and disruption on so many fronts. With it has come a broader awareness of the need to redefine finance for good, and to empower better outcomes for society as a whole,” said Simon Paris, CEO of Finastra. “Our goal is to support our customers through this change as they accelerate their digital transformation and deepen the role of financial services to help millions of individuals, SMEs and communities navigate the future. Our people, technology and ecosystem help tackle some of the biggest challenges in our industry, with the aim of driving open finance and economic prosperity for all.”
Through technology and collaboration, Finastra and its customers are set to positively impact over nine million lives around the world, with key areas of focus including:
- The SME funding gap – Finastra is piloting a revolutionary microfinance initiative, Trust Machine, in Kenya. Together with partners in data, financial literacy, blockchain and scenario modelling, the resulting loan and balance sheet optimization solution aims to reduce the $19bn funding gap
- Equality in financial services – Between 2009 and 2015 in the US, it was estimated that up to 1.3 million purchase and refinance loans were rejected for African American and Latinx applicants. FinEqual is a hackathon winning idea that is now under investigation at Finastra, designed to spot potential bias in credit decisions.
- Financial inclusion – Finastra digital solutions are enabling customers to reach over five million people who are currently unbanked. One example is IFIC Bank in Bangladesh which is helping to bring more people into the banking ecosystem, many of whom didn’t hold a bank account before.
- Serving customers through change – Ecobank recently connected 34 African countries with a unified cash management system, powered by Finastra. In three months, Ecobank processed approximately $75 million in transaction volumes for COVID-19 relief funds to citizens, through Fusion Cash Management.
Separately, having moved to the cloud earlier this year, Finastra’s core banking platform, Fusion Phoenix, is expected to enable US community banks and credit unions to provide continued banking support remotely to nearly a million end users.
Erika Baumann, senior wholesale banking analyst at Aite Group said “COVID-19 has forced a global rethink for many organizations, accelerating the need for solutions that positively impact lives, businesses and communities. Initiatives like Finastra’s Trust Machine, which pull together ecosystem expertise to tackle bigger problems such as inequality and poverty, are just one way that industry is reshaping itself for better outcomes.”
