Financial Objects enters microfinance business with African Bank contract

Financial Objects enters microfinance business with African Bank contract

Johannesburg-based credit provider African Bank is to deploy Financial Objects' activebank package to support general ledger, lending and treasury operations across its 200 national branches.

African Bank is implementing the Microsoft-based system to streamline lending operations and the management of customer repayments.

Financial Objects says the system provides an up-to-date picture of account status, allowing the bank to to service Southern Africa's growing number of microfinance customers, who are denied access to traditional credit facilities due to irregular cash flows or a high risk profile.

Karim Peermohamed, executive director, global sales, Financial Objects, says in the last ten years microlending has become one of the most dynamic areas of the African and Asian financial services industries and firms have been fighting for a share in the marketplace.

"In Southern Africa alone, there are 35 million people with no access to the formal banking system - these are the people that microlending exists to serve.

"We look forward to expanding our customer base into the worldwide microlending industry and working with one of its most prestigious players," he adds.

Deployment of the system is expected to start in June 2003.

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