EXCLUSIVE: New bank in Laos selects Flexcube core banking system
Laos International Bank, a neobank currently in formation, has selected Oracle Financial Services for its front-to-back office software, FinTech Futures understands.
Money for the new bank is said to be coming from China, according to a source familiar with the matter. The bank has signed for Oracle’s Flexcube Universal Banking, the vendor’s flagship core banking offering.
Already holding an established presence in Laos, Oracle currently serves other customers in the region such as the Bank of the Lao PDR – the country’s central bank – as well as Joint Development Bank, LaoViet Bank, ST Bank, Banque pour le Commerce Exterieur Lao (BCEL) and Krungsri Leasing Services Company Limited (KLS), to FinTech Futures‘ knowledge.
Oracle was approached for comment on the new deal with Laos International Bank. The core banking provider neither confirmed nor denied the deal, but did say it is “seeing a lot of momentum at the moment, working with new clients to support their transformations and expansion in a fast-growing and exciting region”.
The vendor competed with rivals Temenos, Path Solutions and ICSFS for a number of the African contracts, but it is not clear what competition Oracle had in landing the deal with Laos International Bank.
Digital transformation for banks in Laos saw big moves towards mobile payments last year. One of the biggest state-owned banks in Laos – the aforementioned Flexcube user, BCEL – partnered with Hong Kong’s Wallyt to allow Laos merchants to accept mobile payments through WeChat Pay and Alipay.
Lao Development Bank (LDB) also partnered with fintech KIWI Company Limited last year to allow Chinese investors to conduct transactions through Alipay in Laos.
Last year’s developments in mobile payments and the active partnerships formed by major banks in Laos suggests new momentum for mobile and digital-first banking across the region.