Nordic Digital Lender Folkefinans Turns to Mambu SaaS Banking Engine

Being a digital lender these days is no easy task. While the concept is great, the execution comes with more red tape than 3M can put out in a year. That means a lot of ground that needs covered just to keep the operation from being swamped by government regulatory forces. Folkefinians, one of the biggest online lenders in the Nordic region, is looking to take on the government regulatory flood by bringing in Mambu to help drive its lending operations.

Mambu offers a software-as-a-service (SaaS) banking engine, which can address a wide range of options in the banking industry as well as allow for the rapid development of new products and features. Since it runs on an SaaS basis, it’s readily available for its users, and can be scaled up or down as needed to make sure that only as much as necessary is available when it’s actually called for.

This flexibility makes it particularly useful in environments that frequently change, and for an online lender, the phrase “frequent change” is almost an understatement. Not only have regulations changed, but customer demands have likewise changed, making change not only ever-present, but sometimes at loggerheads; what customers want doesn’t always mesh precisely with what regulators will permit, and vice versa.

Thanks to this change, Folkefinians can release a new product almost immediately, and has with its new revolving credit loan system. It will be available this April in Sweden and Norway, and provide its customers with increased flexibility.

Subcontracting out certain elements of operation benefits from the effects of specialization and allows for more routine adjustments in a changing field. Accountants specialize in accountancy; they understand tax law and regulations accordingly, which is why no one talks to them when, say, a car breaks down. It has nothing to do with their specialty. When you’ve got two forces acting almost against each other—meeting customer interests which means revenue which keeps your business open and meeting regulatory interests which means you don’t get shut down—you need an edge, and that’s the edge Mambu can provide.

A frequently-changing market calls for a system that can likewise change, and the new combination of Mambu and Folkefinians will likely illustrate how well a system works when it can change quickly.