Global SaaS cloud banking platform Mambu has launched a new digital banking platform for SME financing, according to a statement today.
The platform gives banks and fintechs access to scalable loan management technology. It also offers a network of partner solution providers, such as web-based identity authentication, credit checks and loan origination. The platform is designed to enable speedy loan approval, and reduce costs and time to market for SME financing products.
The banking and lending solution will help to improve ease of access to SME financing, the company said in the statement. In addition to quicker product launches, it also allows flexibility to adjust loan conditions depending on the financial requirements of SME borrowers.
“Small businesses have been greatly affected by the pandemic. Whether that’s starting a new company or growing an existing one, there’s never been a bigger requirement for SME lenders to offer the services their customers need,”
Elliott Limb, Chief Customer Officer at Mambu, said.
Mambu stepped into the Middle East market late last year. In December 2020, the company opened its first office in the region, in the Emirati capital of Abu Dhabi.
More recently, Mambu also announced a partnership with Saudi Arabia-based Islamic fintech Ta3meed. Under the partnership, the two companies aim to provide fintech-based Islamic SME financing solutions in Saudi Arabia. The partnership would integrate Mambu’s core banking technology with Ta3meed’s automated Purchase Order financing platform.
The MENA region’s SME financing gap
Globally, SMEs account for about 90% of businesses, over 50% of employment, according to the World Bank. They also contribute around 40% of the GDP of emerging economies. At the same time, however, SME financing is the second-largest obstacle to their growth in these markets.
Moreover, an IFC report noted that banks contribute just 8% of SME financing in the MENA region, and a mere 2% in the GCC. Of the total MSME financing gap of US$ 210-240 billion, the formal financing gap accounts for US$ 160-180 billion alone. On the other hand, lending averages in middle income countries stand at 18%, and 22% in high income countries.