MICROCAPITAL BRIEF: Chinese Unit of Opportunity International (OI) Buys Mambu Cloud Banking Software to Support Lending to Small, Medium-Sized Enterprises (SMEs)

Opportunity International (OI), a US-based nonprofit providing microfinance in 22 countries, has selected Mambu, a German firm offering a cloud-based banking platform, to provide banking software for OI’s lending to small and medium-sized enterprises (SMEs) in China. Opportunity China, OI’s Chinese arm, offers loans of between USD 20,000 and USD 1 million to SMEs that employ up to approximately 100 people.

In explanation of the decision to use Mambu’s services, Robert Westcott, the chief information officer at OI, stated, “Leveraging cloud technology and greater integration with mobile channels were key goals in our strategic roadmap for 2014…. For OI China in particular, we wanted a platform that enables us to…expand our services to more clients quickly.”

In September 2013, OI reported a gross loan portfolio of USD 617 million, 2.9 million active borrowers and 1.5 million insurance policyholders [2]. As of 2012, OI reported 1.1 million savings clients and approximately USD 121 million in savings held. As of June 2013, Opportunity China reported total assets of USD 8.1 million, a gross loan portfolio of USD 5.3 million and 846 active borrowers. The institution does not accept deposits. Established in 2009, Mambu serves approximately 100 financial institutions in 30 countries [3].

By Benjamin Krupp, Research Associate

About Opportunity International (OI)

Based in the United States, Opportunity International is a nonprofit organization that was founded in 1971. Opportunity International provides small business loans, savings, insurance and training to approximately 5 million poor people in 22 countries in Africa, Asia, Eastern Europe and South America. As of September 2013, Opportunity International reported a gross loan portfolio of USD 617 million, 2.9 million active borrowers and 1.5 million insurance policyholders. As of 2012, OI reported 1.1 million savings clients and approximately USD 121 million in savings held.

About Opportunity China

Established in 2003, Opportunity China is the Chinese arm of the US-based nonprofit Opportunity International. The organization provides business training courses and business advisory services to clients, of whom 20 percent work in agriculture. In June 2013, Opportunity China reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 8.1 million, a gross loan portfolio of USD 5.3 million and 846 active borrowers. As of 2011, Opportunity China reported return on assets of -7.89 percent and return on equity of -13.14 percent. Opportunity China does not accept deposits.

About Mambu

Mambu is a web-based software application for microfinance institutions (MFIs). It provides functionality such as portfolio management, client tracking, transaction auditing and reporting. Mambu, which is located in Berlin, Germany, serves approximately 100 MFIs in 30 countries reaching one million clients. The company also has offices in London, England; Lausanne, Switzerland; and Iasi, Romania.

Sources and Additional Resources

[1] Information provided to MicroCapital by Mambu, May 28, 2014

[2] Opportunity International: Social Performance Report 2013

[3] Mambu: About Mambu

MicroCapital, May 16, 2014: Mambu Sells Software to Nigeria’s One Credit, Premier Kenya, Angola’s Mão Solidária Microfinança

MicroCapital, June 13, 2013: Caterpillar Foundation Donates $19m to Opportunity International to Reach 17m People in Africa, Asia and Latin America

MicroCapital, November 23, 2012: Opportunity International Adds Savings Service in Colombia By Converting Into Microfinance Bank With Funding From Citi Foundation

MicroCapital Universe Profile: Opportunity International

MicroCapital Universe Profile: Opportunity International China (Opportunity China)

MicroCapital Universe Profile: Mambu

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