MICROCAPITAL STORY: Agile Financial Technologies (Agile FT) of the United Arab Emirates Signs Deal with Theme Technologies (Theme) of India to Acquire Theme’s Micro-Finance, Micro-Credit and Credit Management Products

Agile Financial Technologies (Agile FT), a software technology provider, will acquire information technology company Theme Technologies’ (Theme) micro-finance, micro-credit, and credit management products. Agile FT will rebrand and launch the products as Agilis Universal Microfinance (Agilis UMF). The agreement is an earn-out mechanism over three years where part of the purchase price is contingent upon the future performance of Theme.

This deal will allow Agile FT to offer Agilis UMF as a software platform and an outsourced service to microfinance institutions (MFIs) in emerging markets. The immediate thrust will be in Africa, Middle Eastern markets like Saudi Arabia and Egypt, and South and Southeast Asian markets, including Indonesia, Malaysia, Philippines and Vietnam. Mr. Kanthimathinathan, Chief Executive Officer and Managing Director of Theme Technologies, stated that Agile FT will provide Theme the right global reach in the emerging markets that is required to ensure that MFIs have access to its platform and technology.

As reported by MicroCapital, the Consultative Group to Assist the Poor (CGAP), an independent policy and research center, published a technology survey in May 2009, which found that technology is cited as one of the greatest challenges faced by MFIs. As stated in the survey, the use of technology by MFIs can increase efficiency, accuracy, and outreach, while reducing costs. Common impediments to use of technology by MFIs, as cited, are consistent access to internet connectivity, transfer of data between branches, reliable IT support for software and hardware, and funding for long-term IS solutions. Use of commercially available off-the-shelf products is at 29 percent, while 53 percent use custom built software and 18 percent use manual systems or spreadsheets to manage loan portfolios. Those that use the off-the-shelf products tend to be cooperatives and credit unions where about 60 percent of these institutions use these products.

Agilis UMF enables MFIs to reach the under-banked rural populace by using mobile and smart card technology. The products include a loan and savings product definition engine, channel interface, data repository that enables centralized data processing and management of remotely captured transactions in the field. Agilis UMF also provides an integrated microcredit scoring and rating engine based on socio-economic factors. Public information on product prices and other MFIs using these products is currently unavailable.

Agile FT is a global technology provider to the banking, financial services, and insurance sectors by providing software and services.  Based in the United Arab Emirates, it was formed by merging and acquiring strategic software products and technology companies in the space of software solutions and technology services. Further information on this company is not publicly available.

Established in 2006 and based in India, Theme Technologies provides information technology with a line of products and services to the banking and finance sector. Further information on this company is not publicly available.

By Uyen Tran, Research Assistant


Additional Resources:

Agile Financial Technologies: home

Theme Technologies: home

Business Deal: “Agile FT inks deal to acquire Theme Tech’s micro finance products,” June 10, 2009

green.tmcnet.com: “Agile Financial Technologies adds microfinance capabilities to its product stack,” June 10, 2009

MicroCapital Paper-Wrap Up: PAPER WRAP-UP: 2008 Microfinance Technology Survey, by the Consultative Group to Assist the Poor (CGAP)

CGAP: home; 2008 Microfinance Technology Survey

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