Kreditech is planning to expand into India in early 2018, utilising Mambu’s SaaS banking engine to power a new short-term lending product tailored to local consumer and regulatory needs.
“Kreditech’s mission is to provide financial freedom for the underbanked through technology. By using alternative data and self-learning algorithms, we are able to evaluate consumers whose credit history is difficult for banks to gauge,” said Alexander Graubner-Müller, CEO of Kreditech.
“We offer them access to loans and thereby help them to gain economic independence.”
Together with its partner PayU, a leading payments provider and fellow Mambu client which invested €110m in the platform in May last year, Kreditech expects the product to go live in the first quarter of 2018 with data hosted by AWS India.
Mambu CEO, Eugene Danilkis, said: “This is an excellent example of how fintech convergence can drive strategic growth and expansion.
“Mambu’s SaaS engine helps power Kreditech’s innovative lending-as-a-service offering, which in turn leverages PayU’s customer and merchant base.”
Speaking in agreement with Danilkis, Graubner-Müller commented: “Given the nature of our business, we understand the value of technology and cloud-native solutions like Mambu.Mambu is modern, well designed and highly robust.
“The solution easily integrates into our architecture, allowing us to quickly scale and adapt to market and consumer demands. With Mambu taking care of the loan servicing, we can focus on growth as well as creating a differentiated and tailored customer experience.”
Kreditech’s products – which are designed to fit the underbanked – include a digital wallet, a personal finance manager and a broad range of loan types, including micro-loans and point-of-sale solutions. The firm uses machine learning to power lending decisions, and is currently active across Germany, Russia, Mexico, Spain and Poland.
Speaking to AltFi’s Daniel Lanyon last year, Danilkis commented on the bright future of alternative lending in underbanked markets, despite increased attention from the likes of Amazon, Goldman Sachs and RBS Natwest.
“It is a market that would have once been considered too expensive or risky to serve, making it unattractive. Alternative lenders are using technology to creatively assess borrowers and deliver solutions, opening up a lower value but higher volume income sector.”
