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Mobile-enabled microfinance services network launched

Bank Andara, a wholesale bank for microfinance institutions (MFIs) in Indonesia, and mobile financial services provider Fundamo have launched AndaraLink, the world’s first mobile-enabled microfinance services network.

The network enables MFIs to provide 40 million financially excluded Indonesians with access to financial services via mobile terminals connected to a mobile network.

Irianto Kusumadjaja, COO and CIO of Bank Andara, said MFIs need a fast and innovative technical infrastructure to deliver financial services to a disparate population in a cost efficient and scalable way.

“Instead of trying to reinvent the wheel, Bank Andara has combined existing MFI infrastructure with mobile technology to deliver new and enhanced services. These services help MFIs to boost financial inclusion and grow market share. On average the service has increased participating MFI revenues by 5-10%,” said Kusumadjaja.

More than 32 million Indonesians currently live below the poverty line, with 40 million lacking access to financial services, according to global humanitarian agency Mercy Corps.