Cloud banking tech provider Mambu has forged an agreement with the Ferratum Group to power “Ferratum Business”. This new subsidiary is a designed to provide SME financing and loan service. Mambu’s cloud based, SaaS, will help manage loan application, origination, credit scoring and loan disbursement within one day. According to a release, Mambu’s service will operate in conjunction with existing in-house services already provided by the Ferratum Group.
Scott Donnelly, Director of Business Lending for the Ferratum Group, commented on the new agreement seeing opportunity to grow their business in Europe.
“We saw an opportunity to offer small and midsized businesses a new source of financing to support their growth. Mambu gave us the ability to quickly and efficiently address a globally underserved segment of the market with an expedited rollout and the ability to service a diverse range of SME products,” said Donnelly. “Using Mambu’s cloud platform, we have augmented our existing loan processes to offer a simple application and approval process for SME borrowers in Europe.”
Helsinki based Ferratum described the Mambu partnership as part of its global strategy. Ferratum currently operates in 25 countries in Europe, North America and 22 APAC countries. Ferratum plans to continue is expansion into other countries with a goal of becoming the leading mobile bank. Ferratum states that is has 1 million customers who have been granted one or more loans and 3 million total user accounts in its database. In 2014, Ferratum’s revenues was approximately € 70.5 million. Ferratum recently listed on the Frankfurt Stock Exchange (FRU.F).
Eugene Danilkis, CEO of Mambu, explained that demand for working capital has pushed lenders to reevaluate their models as to how they may meet the needs of SMEs. “We’re excited to help Ferratum Group to launch this new venture and see ourselves as a partner in their efforts to expand and diversify their business lending across new markets and geographies in the future,” said Danilkis.
