Lendsqr vs Finastra as a loan management software in Sierra Leone

What do you look for in a loan management software? Ease of use, simplicity, and something that doesn’t require a PhD to operate, right?

For anyone in the lending space in Sierra Leone, picking a loan management system isn’t just a tech decision—it’s life or death. A software that’s easy to use means faster loans, happier customers, and fewer headaches. But get it wrong, and you’ll be stuck with frustrated borrowers, endless delays, and a lot of apologies. 

Some lenders choose based on how popular the name is alone. But if you’ve been around long enough, you know that the fancy names sometimes hide old, creaky systems. Systems that require two consultants and a full moon just to get the damn thing working.

So, it all boils down to this: which software will make your life easier? Is it Lendsqr or Finastra?

Hint: only one of them can get you started in 5 minutes.

Let’s break it down and see which one truly puts its money where its mouth is.

About Finastra

Finastra, headquartered in London, England, is a prominent financial software company serving a global clientele. Established in 2017 through the merger of Misys and D+H, Finastra has rapidly become a key player in the financial technology sector.

Misys, founded in 1970 by Roger Morgan and Kevin Lomax, initially focused on developing insurance software. Over the years, Misys expanded its portfolio through strategic acquisitions, including Medic Computer Systems in 1997 and IQ Financial Systems in 2004. D+H, originally known as Davis & Henderson, was established in 1875 in Canada, primarily as a printing company. 

It later transitioned into financial technology, acquiring companies like Mortgagebot and Harland Financial Solutions to enhance its offerings. 

In 2017, private equity firm Vista Equity Partners facilitated the merger of Misys and D+H, leading to the formation of Finastra.

Finastra’s headquarters are located in London, England. The company operates in over 130 countries, providing financial software solutions to a diverse range of clients worldwide.

Finastra serves more than 8,100 financial institutions globally, including 45 of the world’s top 50 banks. Its comprehensive suite of products caters to various sectors within the financial industry, such as retail banking, transaction banking, lending, and treasury capital markets.

In recent years, Finastra has focused on innovation and collaboration to enhance its product offerings:

Partnership with Databricks: In early 2024, Finastra partnered with Databricks to integrate advanced analytics and artificial intelligence capabilities into its products, aiming to provide more insightful and efficient solutions to its clients.

Launch of next gen mobile banking: In April 2024, Finastra introduced its Next Gen Mobile Banking application, designed to offer a seamless digital banking experience for community banks and credit unions, thereby enhancing user engagement and satisfaction.

Global agreement with Microsoft: In September 2023, Finastra entered into a multi-year global agreement with Microsoft to modernize its trade platform, leveraging Microsoft’s Azure cloud services to increase agility and flexibility for its banking clients.

About Lendsqr

Lendsqr has a clear mission: to make lending simpler and more accessible across Africa. The company started in Nigeria and has gone global, recognizing the need for a tech-driven solution to help lenders—both traditional and new players—get loans into the hands of people and businesses more efficiently. 

Lendsqr is all about giving lenders the tools they need without all the complex setup, making it easy to start lending, whether you’re a bank or a micro-lender.

Currently, Lendsqr powers hundreds of lenders across different countries. etc. These range from digital lenders to community microfinance institutions, all using Lendsqr’s technology to manage their lending operations smoothly. 

The platform supports different types of lending businesses, which means it’s versatile enough to handle everything from personal loans to SME financing.

Finastra’s onboarding process vs Lendsqr’s

To start, Lendsqr makes onboarding remarkably simple. They focus on speed and ease, especially for lenders in markets like Africa where time and resources are critical. Setting up with Lendsqr can take as little as a few days, thanks to their straightforward, cloud-based system. 

Lenders can begin by signing up online, and they can even start with a free trial to explore the features before committing. The setup doesn’t require a huge tech team or complicated integrations—Lendsqr’s support handles most of the work, like linking payment systems or integrating credit checks. This means lenders can go from decision to action without the delays typically seen with larger platforms.

For larger lenders with complex requirements, Lendsqr also offers a consultative approach to help design bespoke solutions and products. This means they work closely with lenders to understand their specific needs and create tailored features that meet those requirements effectively. 

Whether it’s integrating with existing systems or setting up specialized workflows, Lendsqr’s flexibility allows them to deliver a custom solution that suits larger, more sophisticated lending operations.

On the other hand,

Starting with Finastra involves more steps due to its expansive capabilities and the depth of its offerings. Typically, onboarding with Finastra requires a more tailored approach, considering each lender’s unique setup needs. This means their onboarding process is longer and may involve custom integrations and consultations to fit each lender’s requirements perfectly. 

While this means more time upfront, it also ensures the platform is deeply customized to align with an institution’s specific lending workflows and regulatory needs. The end result is a well-integrated system, but the starting process is far from immediate—it’s a long-term investment into a robust system.

Available platform channels for serving and reaching users

Lendsqr makes it easy for lenders to reach their borrowers through several different channels. Borrowers can access Lendsqr’s services through a web portal or mobile apps, which work on both Android and iOS devices. Importantly, Lendsqr also supports USSD technology—a kind of text-based service that works on any mobile phone, even if it doesn’t have the internet. This feature is especially helpful in parts of Africa, like Sierra Leone, where many people use basic phones and don’t always have access to the internet. This approach helps lenders reach all kinds of customers, from those using high-tech smartphones to those relying on simpler devices.

Finastra, meanwhile, focuses on creating a seamless, polished digital experience, mainly through web portals and mobile banking apps. These platforms are designed to offer a professional, consistent experience, which is crucial for larger banks serving tech-savvy clients. However, Finastra doesn’t have an option like USSD, which means it might be less suitable for borrowers who don’t have reliable internet access or advanced mobile devices. It’s suitable for established institutions and their clients, who expect everything to be digital and connected.

Loan management and monitoring

When it comes to managing and monitoring loans, Lendsqr offers a powerful but easy-to-use dashboard. Lenders can see every detail of their loans, from disbursements to collections, penalties, and portfolio performance, all in one place. The dashboard shows real-time data, making it simple for lenders to make quick decisions. Lendsqr also has a flexible system that lets lenders adjust loan terms, interest rates, and other conditions whenever they need to. If market conditions change or a new opportunity arises, lenders can adapt without needing technical skills or waiting for system upgrades. This flexibility is especially useful for smaller lenders or those in fast-changing markets who need to move quickly.

Finastra takes a more enterprise-level approach, aimed at larger financial institutions managing complex portfolios. Their Fusion Loan IQ platform gives lenders a 360-degree view of all their loans, including syndicated loans (which involve multiple lenders sharing the risk). The system’s strength lies in its automation—many of the processes are handled by automated workflows, which reduces manual effort, minimizes errors, and makes the entire process more efficient. Finastra’s tools are well-suited for larger lenders who deal with multiple types of loans and need a robust, integrated system to handle it all.

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Risk assessment and credit management

Lendsqr helps lenders make smart decisions about who to lend to, using a mix of data and credit scoring models. It can connect to various credit bureaus, allowing lenders to access credit histories and assess a borrower’s ability to repay. This helps in managing risk and keeping the loan portfolio healthy. Lendsqr also has its own risk assessment modules that use data like borrower behavior and past financial history to guide lenders on who is creditworthy and what kind of loan terms are suitable.

Finastra also focuses heavily on managing risk, but its tools are designed for more complex risk scenarios often encountered by large institutions. Their lending software includes sophisticated risk assessment models that help identify and manage risks across a wide range of lending activities. Finastra emphasizes compliance with regulatory standards, making it ideal for banks and financial institutions that need to meet strict regulations. Their solution provides detailed analytics and reports to monitor credit risks, ensuring that lenders have a clear understanding of the risk profile of each loan.

Integration, customization, and flexibility

Lendsqr is designed to be flexible and easy to integrate with other systems. It offers a wide range of APIs that make it simple for lenders to connect Lendsqr with their existing tools and services. This flexibility allows lenders to customize their workflows, add new features, or even integrate external data sources to enhance their lending process. For instance, if a lender wants to use a specific payment provider or a different kind of credit scoring system, they can easily add it to their Lendsqr setup without much hassle.

Finastra also supports integration, but it takes a slightly different approach. Through its FusionFabric.cloud platform, Finastra enables collaboration and integration with other financial technologies. Third-party developers can create apps that integrate with Finastra’s systems, allowing for a high level of customization. This makes it possible for large financial institutions to build unique, powerful tools that suit their specific needs. However, integrating these solutions might require more resources and expertise compared to Lendsqr, making it a better fit for larger teams that can manage the complexity.

Payment collection and Non-Performing Loan (NPL) management

Lendsqr has a straightforward and efficient system for collecting payments. It supports multiple methods, like direct debits, card payments, and even mobile money options, which gives borrowers flexibility when it comes to repaying their loans. The platform also includes tools to help lenders manage loans that are at risk of default. For instance, automated reminders for repayments can be sent through SMS or email, which helps in keeping borrowers on track. Lendsqr’s system also calculates penalties for late payments automatically, helping lenders stay on top of non-performing loans and keep their portfolio healthy.

Finastra provides robust payment collection tools, integrated directly into its lending solutions. It focuses on streamlining the payment process, which helps large financial institutions collect repayments more efficiently. Finastra also provides detailed tools for managing non-performing loans, helping lenders identify risks early and take the necessary actions to minimize defaults. Their system is designed to handle complex repayment structures, making it suitable for commercial and corporate lenders with sophisticated repayment needs.

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Pricing

Lendsqr offers a transparent and flexible pricing model with multiple subscription tiers to accommodate different business sizes and needs:

• Free plan: For individuals or small businesses managing personal lending, offered at no cost.
• Pro plan: Designed for growing businesses, priced at $200 per month.
• Business plan: Tailored for established businesses, at $500 per month.
• Enterprise plan: For large organizations requiring advanced infrastructure, priced at $1,000 per month.

Each tier provides access to specific features, allowing lenders to choose a plan that aligns with their operational requirements and budget. Finastra does not publicly disclose specific pricing information for its lending solutions. Pricing is typically customized based on the institution’s size, requirements, and the specific solutions implemented. Engaging directly with Finastra’s sales team is necessary to obtain detailed pricing tailored to an organization’s needs.

Lendsqr or Finastra? Your choice

These points of analysis are enough to help you make your choice but if you need more convincing, feel free to book a call with our head of sales, and she’ll sweet talk you with all the reasons Lendsqr is the better choice.