The future of MFBs in Nigeria: Uninterrupted business operations

Encouraged by improving financial inclusion rates between 2008 and 2010, in 2012 the Central Bank of Nigeria (CBN) launched the National Financial Inclusion Strategy with key stakeholders.

According to the EFInA’s 2018 Access to Financial Services in Nigeria Survey, Nigeria’s financially included population has continued to rise from 21.1% in 2008 to 39.7% in 2018.

The aim of the CBN’s strategy is to continue increasing the financial inclusion rate of adults in Nigeria to 80% by 2020.

As financial inclusion is expanding across Nigeria, more and more, financial institutions need to equip themselves with a modern IT strategy and flexible, future-proof core banking system. To stay competitive, microfinance banks (MFBs) need to improve their internal processes, enhance their security and cost efficiency while rolling out new digital financial services.

To respond better to the changing market requirements, MFBs are reassessing IT strategies, security measures and risk management structures. By outsourcing their banking platforms, MFBs are reducing overhead costs and focusing on their core business: providing financial services to Nigeria’s underserved population.

No interruption for End-of-Day or End-of-Month processing

At the end of the day, financial institutions need to ensure that all business transactions from the current day were processed correctly. Similarly, month-end closing or End-of-the-month (EOM) procedures are tasks required to make sure that all financial institutions’ records are balanced before the start of a new month.

As most Nigerian MFBs have branches located in hard-to-reach areas, downtime during End-of-Day (EOD) or End-of-the-Month (EOM) processing for one single branch can affect all business operations. During EOD processing, even alternative channels such as ATM and agent network services can be paused, which can be devastating for MFBs’ clients.

Oradian’s cloud-based core banking platform, Instafin, offers automatic and continuous consolidation of all operations and branches. This means that an MFB’s client data is ready and available in real-time and enables constant monitoring of business performance.

With Instafin, MFBs are not required to interrupt their business operations for EOD or (EOM) processing. All relevant calculations, transactions and entries happen automatically, with no downtime.

field officer using device

Community cloud meets MFBs’ security and privacy needs

Community cloud is revolutionary in computing, as it offers enhanced business value and optimal security standards. As opposed to private clouds – which have isolated infrastructures – community clouds’ multi-tenancy infrastructures ensure that each customer runs in its own secured and isolated environment and offers high capacity for expansion.

Instafin is a community-cloud based core banking system that meets MFBs’ security and privacy needs and presents MFBs with a secure and efficient platform. Oradian hosts Instafin in three data centres that are geographically dispersed throughout Europe. These data centres are protected by a multi-layered security model that is compliant with key industry standards such as ISO/IEC 27001.

With Instafin, you run your business more securely while reducing your operational costs which allows you to focus on your core business of providing financial services to your community.

Ready for uninterrupted business operations for your MFB? Download more information about your business continuity with Oradian