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Envestnet Yodlee partners with local financial services incubator

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 12 May 2016
The partnership will improve the quality of financial tools available to African start-ups, says AlphaCode's Chipo Mushwana.
The partnership will improve the quality of financial tools available to African start-ups, says AlphaCode's Chipo Mushwana.

US-based data aggregation and analytics company, Envestnet Yodlee has partnered with AlphaCode, a local financial services incubator to provide SMEs with data aggregation and account verification services.

Envestnet Yodlee says this strategic partnership aims to improve the quality of financial tools available to African start-ups by providing innovative financial solutions. The organisation has opened up its application program interface (API) gateway for free use by start-ups during a trial phase.

Chipo Mushwana, head of ecosystem and management at AlphaCode, says emerging entrepreneurs often shape the future of fintech, and partnering with Envestnet Yodlee will provide SMEs with access to an industry-leading data aggregation platform.

She points out Envestnet Yodlee will provide AlphaCode with account verification services and access to its cloud-based software application program, FastLink which will be used by its start-up clients in SA and different parts of the African continent.

"Fastlink is financial services software within the Envestnet Yodlee stable, which works as an aggregator of information, assisting entrepreneurs to run background checks and weigh their financial ability prior to applying for loans.

"The platform also allows our start-ups members around Africa to link their external bank accounts into a single dashboard and assists them in running quick background checks on their clients' spending patterns," she explains.

If businesses are looking for a profile of their clients' purchase behaviour, Mushwana adds, FastLink is able to seamlessly source this information using predictive analytics.

Jason O'Shaughnessy, SVP of International markets and managing director, EMEA at Envestnet Yodlee, says the fintech landscape, combined with Africa's entrepreneurial spirit, is driving innovation in Africa, with tools like M-Pesa becoming a part of everyday life on the continent.

"We are excited to support the development and evolution of financial services by providing access to our platform and solutions to AlphaCode.

"Envestnet Yodlee's support to African entrepreneurs can provide a better financial experience and decision-making process for consumers, helping financial applications evolve alongside Africa's embrace of new technologies.

Mobile payments have grown enormously over the years in Africa, he notes. In 2014, the market generated $656 million and is expected to double to $1.3 billion in the next four years.

Africa's financial technology adoption rate for e-wallets is also three times faster compared to the US, he continues.

Dominique Collett, senior investment executive at Rand Merchant Investment Holdings and head of AlphaCode, says open platform architecture is transforming cost structures of financial services organisations, and the pace of innovation and customer engagement via the use of APIs.

"We are excited to work with a technology company like Envestnet Yodlee that is enabling rapid innovation in the industry and transforming how financial services organisations deliver customer solutions," she says.

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