Mambu, the cloud banking and microfinance technology provider, is partnering with Yale University's Elmseed Enterprise Fund, the pioneering student-run microfinance program in New Haven, Connecticut.
The partnership sees Elmseed Enterprise adopt Mambu's Software-as-a-Service platform, supported by a donation of $100,000 in service credit from Mambu.
Founded in 2001, with a $10,000 award from a Yale Entrepreneurial Society contest, Elmseed is staffed by Yale University student volunteers, and supports entrepreneurs in the New Haven area with microloans and business advice. Last year the program supported 38 clients with consulting services and disbursed $13,655 in loans to 5 entrepreneurs.
"We were struggling to manage our customer data and were seeking a new customer relationship management program, when we were introduced to Mambu," said Jadon Montero, chief executive at Elmseed Enterprise Fund. "Mambu's platform will help us manage our client information better, which means our volunteer advisors can spend more time helping their clients and less time worrying about the paperwork."
Eugene Danilkis, co-founder and chief executive of Mambu, added: "Programs such as Elmseed Enterprise give the next generation of microfinance professionals the opportunity to develop their skills and give something back to their local community at the same time. Mambu is on a mission to improve access to financial services worldwide so we are pleased to be able to support this important academic program, one of the pioneers of college-based microfinance."
Mambu's revenue model works on a 'pay as you grow' basis, requiring an upfront payment or commitment fee, which is converted to service credit once the customer is live on the system. This model allows organizations to quickly adopt Mambu without the burden of capital expenditure that is typically associated with core banking software deployment. In Elmseed Enterprise's case, the upfront fee has been waived and Mambu has donated up to $100,000 in service credit to the project, which essentially makes the service free of charge for at least the first year of the partnership.
The partnership was finalized in December 2014 and Elmseed Enterprise aims to go live in March.