Ubank, a financial services provider primarily within the gold and platinum mining communities, is targeting 1.5 million users by 2017.
The bank, which currently provides a service for around 400 000 customers, has partnered with Nucleus Software Exports, a provider of software products for the banks and the financial services industry, to roll out the new credit and loan system.
This initiative, which is part of Ubank's five-year strategy to grow its current portfolio, is powered by lending technology solution - FinnOne.
Luthando Vutula, CEO at Ubank, says the bank is executing on a board-approved strategy that has, among other objectives, the vision of attracting 1.5 million customers by providing for an improved product suite; improving on mobile banking; exploring options of employer-based sales models; partnerships; and increased distribution points.
"Ubank is the first bank in South Africa to implement FinnOne," says Vutula. "This new system is expected to increase our lending efficiencies exponentially and will also prepare us to leap into the future of lending. It forms an integral part of our 10-year strategy to grow our capacity to diversify and increase revenues while remaining the bank of choice for workers and their families."
He says building credit capacities includes designing an operating model that will enable Ubank to compete effectively in the open market, improve its lending capabilities and implement robust and effective processes and procedures.
"With more than 22 customers in eight countries across Africa, Nucleus Software has a long-term focus on the vibrant, growing African banking market," says Vishnu R Dusad, CEO of Nucleus Software.
"The Ubank-Nucleus Software collaboration is a reconfirmation of our commitment to provide continuous value to our customers. FinnOne has proven itself as a scalable platform meeting the multifarious needs of Ubank's lending customer base. The growing adoption of new-generation technology offerings by financial institutions in South Africa indicates there are ample opportunities for market ready products like FinnOne to enable innovation-led growth."
The companies say the project will also help reduce impairments over a five-year period from 2013 to 2017 due to better on-boarding capabilities that limit bad lending.
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