Finastra has announced that the Japan International Cooperation Agency (JICA) implemented its Loan IQ platform to enhance its private-sector investment finance system.
This marks the inaugural use of Loan IQ in Japan. The project has been executed in collaboration with IBM Japan.
According to Finastra, the implementation aims to streamline JICA’s loan operations. It also seeks to bolster JICA’s capacity for handling international private sector loans, which are integral to development projects in various countries.
The new JICA system, underpinned by Loan IQ, is said to facilitate comprehensive management of loan transactions denominated in multiple currencies including Japanese yen and US dollars.
The adoption of this platform is anticipated to improve operational efficiency and prepare JICA for future expansion in private-sector investment finance.
As Japan’s main body for Official Development Assistance, JICA provides concessional financing for infrastructure and social development initiatives in developing nations.
With rising demand for private funding to address economic and social issues in these countries, JICA’s Private-Sector Investment Finance is expected to grow significantly. The introduction of a globally compliant and scalable platform is seen as essential to meet these demands.
JICA information system department information system division 2 director Taketsuru Eiko said: “We expect that this transformation will strengthen our ability to mobilise private capital for development, and to support increasingly diverse financial structures, enhancing the foundation of JICA’s private sector operations.”
IBM Japan played a critical role in the implementation process, handling development, data migration, user training, and operational support. Its expertise in finance solutions contributed to the effective deployment of the system.
Loan IQ offers a suite for managing the entire loan lifecycle, from transaction setup to final repayment. This solution is widely utilised by financial institutions worldwide.
Finastra lending executive vice president Andrew Bateman said: “JICA plays a critical role in advancing sustainable development in emerging markets.
“We’re proud that Loan IQ now powers JICA’s private sector lending operations, enabling it to streamline processes and scale impact in line with its mission.”
In addition to this project with JICA, Finastra has expanded its partnership with NTT DATA. This collaboration seeks to enhance Finastra’s Lending Cloud Service across the Middle East, Africa, Asia-Pacific, and Latin America regions.
The partnership aims to deliver improved automation and scalability for financial institutions through managed services provided by NTT DATA.
