Mambu Digital Solution Targets SMB Lenders

Cloud banking platform Mambu now has a fully digital solution for small and medium-sized lenders that includes scalable loan management tools and access to web-based identity authentication, credit checks and loan origination, per a Tuesday (July 27) post on their website.

Mambu’s new offering is designed to help close the gap between the 65 million firms around the world—about 40 percent of the world’s total of micro, small and medium-sized businesses—needing as much as $5.2 trillion for their businesses and the lenders who leave them waiting for an answer that may not come—or might not be one that makes them happy.

The Mambu platform allows lenders to adjust loan conditions to support buyers who are running into financial hardships—and there are plenty of businesses in that situation after more than a year into the COVID-19 pandemic.

“Small businesses have been greatly affected by the pandemic,” said Elliott Limb, Mambu’s chief customer officer. “Whether that’s starting a new company or growing an existing one, there’s never been a bigger requirement for SME [small to medium-sized enterprise] lenders to offer the services their customers need.”

“With Mambu’s composable approach we provide an agile way for our clients to build and shape new financial services around the businesses they want to help,” Limb said.

Mambu’s valuation is in the $2 billion range after a fundraising round in January. The company plans to double its payroll to more than 1,000 people by 2022.

Vinícius Cibim, co-founder and chief financial officer of Brazil-based embedded finance FinTech Dinie, told PYMNTS that small and medium-sized business (SMB) financing must meet businesses where they are. Where payments modernization has had a meaningful impact on the SMB finance landscape is in the concept of embedded services.

For Dinie, that means eCommerce portals and marketplaces, and these can be the portals through which small merchants sell their goods or the platforms upon which they procure goods themselves.