Source: Finance in Motion
Finance in Motion, one of the world’s leading advisors in impact investing, has announced the purchase of an equity stake in Oradian, based in Zagreb, Croatia, developer of a cloud-based banking system that supports financial inclusion in economically challenged regions.
The stake marks Finance in Motion’s first investment in the burgeoning financial services technology sector known as fintech. The company was attracted to Oradian’s pioneering cloud-based platform Instafin, an all-in-one solution for microfinance institutions and banks looking to avoid large initial costs and improve current performance.
Instafin, making use of the prevalence of stable cellular coverage in regions where cabling infrastructure and even electricity supply is questionable, is an ideal low cost, scalable and therefore low risk disruptive product based on the Software as a Service (SaaS) business model.
Giving evidence to its robustness, one of its first users, a microfinance institution in Nigeria, operates in a region plagued by armed conflict and still managed to more than double its client base to 200,000 in just two years.
Finance in Motion Managing Director Florian Meister said: “We firmly believe in the transformative potential of financial services technologies such as Instafin. This product has established its ability to promote financial inclusion, one of our primary goals, by allowing microfinance institutions and banks to serve more customers, even in regions many people would be afraid to visit, let alone do business there. This product also eliminates the high costs associated with traditional hosted solutions, outlays that often create a significant market barrier for many institutions.”
Oradian Managing Director Antonio Separovic said: “Oradian is more than a software company - we’re a partner that helps microfinance institutions and banks to build their own capacity for growth, transform their businesses, and meet the needs of the 2.5 billion people worldwide at the base of the economic pyramid. We are excited to partner with one of the world’s leading impact investors because it shares our vision for helping microfinance institutions and rural banks to catalyse economic growth and give people access to financial tools that improve their lives. We hope to learn from Finance in Motion’s extensive experience in responsible finance and their work with leading service providers and partners in low- and middle-income economies.”