Alterfin has announced an equity investment into Musoni Services, the award-winning microfinance software company. The funds will be used to support the company’s continued rapid growth and drive expansion into new markets. Alterfin was joined in the investment round by a number of Musoni’s existing shareholders.
Musoni provides its innovative banking system to microfinance institutions in emerging markets, helping them to leverage technology and improve efficiency. By using Musoni, microfinance institutions are better able to extend financial services to un(der)banked individuals in emerging economies. Musoni is used by 100 visionary financial institutions across 14 different countries (10 in Africa and 4 in Asia).
Aside from the core banking functionality, Musoni has pioneered the use of new technology in microfinance, and as such is integrated with multiple mobile money transfer services, includes an SMS module for the sending of automated payment reminders, a tablet app that loan officers can use for offline data capture, a mobile banking app for clients and CRB integrations to improve lending decisions.
To make the system accessible to as many MFIs as possible, the Musoni System is licensed using a SAAS pricing model, charging annual, rather than upfront fees; the size of the annual fee is based on the size of the MFI licensing the system.
Speaking about the investment, Jean-Marc Debricon, Alterfin’s General Manager said, ‘Alterfin understand first-hand the challenges that many rural microfinance institutions have when it comes to technology. We believe that Musoni can revolutionise the way financial services are delivered across the industry and particularly in rural regions where financial inclusion is at it’s lowest. The team has consistently demonstrated its system’s impact and we are excited to work with them continuing our shared social mission.’
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