Local IT cos eyeing vast untapped market for micro credit solutions

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Mehdi Musharraf Bhuiyan
As microfinance has put Bangladesh on the global map of poverty reduction, the local IT companies must tap the opportunities to achieve another milestone.
Banking on their years of experience in handling numerous local microfinance institutions, a good number of homegrown IT entities are now eyeing the vast untapped market for micro credit software mostly in developing countries.
These companies have now come to realise that there is a growing potential of micro credit solutions in the world's emerging economies and as a result the more recent but burgeoning hub of micro lending based in South East Asia, East Africa, and other parts of the South Asian region are increasingly coming into focus of these companies.
"Microfinance software could potentially be the next big thing for the country's IT industry given our longtime domestic exposure and experience in this segment", said Syed Mamnun Quader, Chief Executive Officer of Southtech Limited, one of the country's leading software houses.
"As the idea of microfinance spreads throughout the world, so increases the demand for related software solution," he said, adding, "As a pioneer of microfinance, Bangladesh has the potential of becoming a market leader in providing such solution".
Southtech Limited has a long history of providing IT automation services to some of the country's leading institutions including BRAC, the world's biggest NGO and a leader in microfinance solutions.
Four years ago, the company ventured into the global market with its 'Ascend Banking' software, especially built for the micro financing, which duly made its way to BRAC's banking operation in Afghanistan.
In addition, the company has also automated a total of 23 branches of Bhutan Development Finance Corporation Limited, a leading financial institution of Bhutan with special focus on microfinance.
"Bhutan was a major success story. Our own micro credit software was chosen ahead of i-Flex, a renowned software developed by multinational giant Oracle", Quader said.
"Currently, we are also eyeing numerous micro credit institutions of Southeast Asian region", he added, "Recently, we have also been in talks with US financial giant Citibank NA whose Singapore body is now evaluating our software".