Fundamo, a specialised South African mobile banking and transaction solution provider, has boosted its global footprint and competitiveness by concluding a Source Code agreement with S1 Corporation, the Atlanta-based technology vendor.
Hannes van Rensburg, CEO of Fundamo, says the deal is an endorsement of the value which South African companies could bring to the developed market by producing world-class and innovative solutions at very competitive levels.
Aletha Ling, hof business development at Fundamo, adds: “Our main focus has been on emerging markets such as Africa, the Middle East and South America, where we see the greatest need and uptake,.
"It is through strategic initiatives such as the transaction with S1 that we are addressing the developed markets. The relevance of our solution to the US market confirms our conviction that our banking solutions are world class and unique and that there is a strong value proposition for all consumers."
According to the agreement, S1 Enterprise, a division of S1 Corporation, has acquired a source code license to use Fundamo’s mobile banking software, which has been enabling mobile banking transactions since 2002.
Fundamo’s software will allow people in the US to perform banking transactions such as checking balances, transferring funds, and viewing recent transactions through a mobile device.
“We believe that it is essential to deliver a mobile banking solution to our financial institution customers that is fully integrated into our core platform and applications,” says Jan Kruger, president of S1 Enterprise. "The growth in mobile phone usage means that now is the right time for financial institutions around the world to offer secure mobile banking access to their customers."
While Fundamo’s brand is recognised in the emerging market sector, this is its first foray into the US market. To date, US markets are lagging behind the emerging markets in mobile and in particular in mobile banking and payments, but there is a current upsurge in interest in the US market as financial services companies start scrambling to offer similar services.
“Fundamo’s strategy for its global expansion has been to work with strong, branded business partners and we will continue to do so," says Van Rensburg. "There are still plenty of growth opportunities in the developed market, which Fundamo will consider in the future. However, the bulk of the company’s focus and revenue continues to be in its strategic emerging markets.”