Allevo to help Micro-Finance Institutions looking to improve their operations

It was also a get-to-know-each-other event, with us looking to understand what MFIs in Romania are looking for from a solution provider and MFIs interested to find out how Allevo can help. Participants said MFIs are looking for something new to be implemented on the Romanian market, something that can be truly useful for both the institutions and their customers. And we were happy to hear they believe Allevo can help them be more creative and even surprise their customers with new services.


The workshop also enjoyed the presence of Dutch consultant Ruud van der Horst, whose presentation took a closer look at microfinance from different perspectives: credits, deposits, money transfers and insurance, also showing them by comparison between MFI and normal. He then presented the Musoni case study, a Dutch microfinancing institution which gives loans using the MPESA service of Safaricom in Kenya. Musoni has built a “battle tested” system with Allevo’s solution in the middle as traffic agent and law enforcer, which facilitates very controlled straight through processing.


Like shown in the picture below, Allevo’s solution for MFIs enables integration; flow automation; disbursement management; processing and reconciliation for disbursements and loan repayments, system confirmations, system charges and account balance; monitoring, investigation and alerts; advanced reports.


And here’s a short movie that can help you better understand how it works.

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Don’t forget, if you are a Micro-Finance Institution in search for a solution to optimize your operations and you missed our workshop this week, just contact us.

Already at its fifth edition, the SWIFT Business Forum Romania has become an annual event organized by the Romanian Banking Association, with support from Allevo. It brings together key decision makers, people with business focus or from the operations area of the local banking community, key people from SWIFT and from the local solution provider community.

As usual, there were a few words of introduction from Mr Radu Gratian Ghetea, President of the Romanian Banking Association, a brief of the SWIFT 2020 strategy and on SWIFT’s pricing policy, SWIFT solution presentations, a panel on regulations and standards, a compliance outline and an innovation panel.

Allevo has presented its BOOST project during the chatroom sessions. Allevo CEO, Corina Mihalache, joined the innovation panel, next to Rodica Tuchila, Ruud van der Horst and Felix Enescu to discuss openly about opportunities and challenges brought by the Internet of things and the digital bank, a debate on the future of banking and financial services.


Following our success story with Musoni, we believe we could help more Micro-Finance Institutions (MFI) improve their operations. That’s why we thought of organizing a dedicated workshop and on October 28, we did that.


The workshop’s agenda included: the presentation of Dutch consultant Ruud van der Horst, having a closer look at microfinance from different perspectives: credits, deposits, money transfers and insurance, also showing them by comparison between MFI and normal; the presentation showing the Musoni study case and the presentation of Allevo’s solution.


You can read more about the event on our blog.


Don’t forget, if you are a Micro-Finance Institution in search for a solution to optimize your operations and you missed our workshop this week, just contact us.


Allevo, Sibos exhibitor for the last 7 years, hosted the debate “Financial Infrastructures for Public Administrations” in the Open Theater space. The session focused on rationalizing the state’s payments service. Alina Enache, Allevo Sales Manager and Mihai Guiman, Vice-president FINkers United, jointly presented how using specialized open source software applications leads to streamlining the operations of public institutions, to mitigate their operational risk and to offer a platform to scale-up delivered services. More precisely, they talked about an open source solution (FinTP) for managing public payments, architected as a service and hosted by a governmental private cloud.

A couple of years ago, Allevo embraced a major cultural change by deciding to depart from the controlled distribution of the company’ software applications, and choosing instead to freely share them. Allevo believes that this business model shift will alleviate the partnership in complementarity, will create a shared innovation platform for processing financial transactions along the entire supply chain, and, not least important, will potentiate the fundamental value of business ethics in intellectual property (IP) related trades.

There is a smaller adoption rate of open source software at the application level in the financial industry compared to other critical industries such as health care, education, automotive or utilities. Still, Allevo banks on the chance that market players (both solution providers and beneficiaries) will evaluate how they can architect their operations based on the freely available FinTP, the financial transactions processing application published into open source. Another important driver relates to financial institutions’ (FIs) business model. If, for instance, financial inclusion is their core business, than commodity solutions become instrumental in achieving the right level of accessibility.

Countries with a poorer level of banking services or with a less mature banking system can be subject to governmental policies or investment to enlarge financial inclusion. Furthermore, governments – which are generally speaking the largest corporation in a country – ‘employ’ (directly or indirectly, the latter including retired persons, beneficiaries of subsidies or social assistance, etc.) massively: in some cases up to 30% of the population is on their payroll; this in itself represents a powerful enough reason to look for better efficiency of their own operations.

Based on a fruitful partnership of over 10 years between Allevo and the Romanian State Treasury, during which we handled their most important financial operations, led us to conceptually develop this into a full-fledged solution. This Open Theater session at Sibos addressed a proposed solution that centrally manages all public administration payments – which can be extended to tax collection, public debt or public funds management.

Unlike corporate or banks’ treasuries, the State Treasury is a zero risk operation, where any solution should ensure human error containment. Furthermore, functional, technological and highly scaling (according to the evolving needs) data repositories should be warranted, while transparently interoperating with the business community’s members (i.e. with FIs).

Our solution is built around FinTP, architected as a service hosted by a Governmental Private Cloud, as depicted in the picture.


FinTP is configured to fulfill the budget allocation, bulk or urgent payments issuing, and end-to-end tracking and reconciling mechanism – as shown by the numbered arrows suggesting the operational flows. FinTP also helps generate beneficiary public institutions’ reports based on the settled payments, including liquidity reports and forecasts based on accounts balance.

In the particular case of Romania, the State Treasury acts as a direct participant to the electronic payment system in order to communicate with commercial banks, and directly connects to the RTGS and ACH systems, either through the SWIFT Network or a dedicated Proprietary Network.

The main advantages of this architecture implementation are:

  • Achieving end-to-end automation – Straight-Through Processing (STP)
  • Operational risk containment
  • Reduced settlement time
  • Reduced operational cost (cash is expensive)
  • Automatic accounting reconciliation
  • Cash flow forecast
  • Improved user experience
  • Security and confidentiality of information (by safely exchanging sensitive information over private secured networks, instead of moving paper or exchanging emails)
  • Eliminating delays in paying salaries, when public institution accounts at commercial banks are subject to seizure due to possible legal disputes
  • The solution can be extended in the future to offer a wider range of functionalities (e.g. extension for distribution/collection channels on electronic channels like M-PESA, mobile wallets, Apple Pay etc.), with a direct result of increased tax collection and offering a more consistent service for the citizens both as beneficiary and as payer.


This article is an open invitation to BOOSTing together any particular element of the financial services supply chain, and a call to join our FINkers United community.


TechHub hosted on October 23rd the Linux Open Alternative Days (LOAD), an already traditional event dedicated to Linux and open source technologies, which has reached its 9th edition this year.

As LOAD is meant to create a strong community among supporters of the open source philosophy, there was no better place to present the FINkers United open source community and the project it is built around, FinTP.

Therefore, we delegated Denisa Agatie, also a co-founder of FINkers United and member in its board, to talk to the audience about this project and the challenges of creating and maintaining an open source community in the FinTech space.

This session is about ways to help Public Administrations in the EU region improve their business by using FinTP building blocks to:

  • enhance management of Structural Funds – public institutions are organized in a ‘closed user group type architecture’, using existing local infrastructures, for financial information and funds transfer.
  • streamline payment services (paying wages, pensions, subsidies and other expenses, as well as tax collection) – all financial transactions are processed centrally and electronically (using the SEPA format) from the State Treasury (or equivalent), past the interbank payment infrastructure (local ACH), to the appropriate bank accounts.

Interoperability is ensured by alignment to industry messaging standards.


What if open source software and principles were used more extensively in FinTech? Imagine a bank powered by an IT infrastructure made up of free open source software. How would this differentiate them from a financial institution that buys licenses from vendors who provide proprietary state of the art software that needs to be integrated, kept aligned to standards and regulations, and operated flawlessly with the rest of the applications that form the system?

And this is what we tried to find answers to during BOOST – Banking On Open Source Today, the community session we organized at Sibos. To help us with the debate, we invited Mircea Mihaescu, Director Technology Research Center, Sberbank,  Mr. Matteo Rizzi, Partner, SBT Venture Capital, Mr. Radu Gratian Ghetea, President CEC Bank, Mrs. Rodica Tuchila, Director Romanian Banking Association and our new CEO, Corina Mihalache in the panel.

As outlined by studies conducted by Black Duck or other similar entities, people in the audience agreed there is a good chance such a platform would evolve much faster than systems that get left behind due to the existence of deprecated or obsolete software, derived from code often written by people who are no longer part of the company, code that nobody wants to touch, or due to the low update frequency of apps that are part of the solution. Open source software, like Linux and its famous Android sibling, Eclipse, Hadoop, MySQL or FinTP, is usually backed and maintained by those who create the project and, by its open nature, it gets to benefit from contributions of any party interested in enriching or rethinking bits and pieces of the code. This is a non-intrusive approach designed to encourage collaboration, creativity and idea generation in a community that’s open and transparent.

In FinTech, such a complete platform could serve as the base for creating a new standardization layer that goes beyond mere standardization at message level. By standardizing the way applications process financial instruments and, more generally, transactions and the way they interact with one another, back-offices of banks and treasuries of corporates, of governments and of other public administrations could achieve a semantic interpreter that can talk finance to their peers.

Despite the omnipresence of open source, it has still not gained sufficient popularity in banking and in financial services. The first application that can process financial instruments and transactions in general distributed under free open source license is FinTP published on, its source code being hosted on github.


FinTP is a powerful tool that automates business flows and internal processes of banks, other types of financial institutions or corporations. It goes beyond basic integration by providing operators with features tailored to their business needs. This is a tool that is built over the SWIFT network and that plugs directly into the SWIFTAlliance suite and into any type of back-office or ERP system, creating an end-to-end corridor for financial instructions.

With features like duplicate detection, remittances, treasury instruments, liquidity reporting, NOSTRO/VOSTRO accounts reconciliation, statements processing, custom AML filtering, competitive reporting, SEPA and TARGET2 readiness, resilience etc., FinTP can definitely act as part of the bigger platform above.

FinTP is highly flexible and customizable and can be installed either on stand-alone platforms, either in a private or public cloud, as it is both SaaS and cloud ready. This gives financial institutions a wider range of options in regards to building the IT infrastructure that best serves their requirements.

It is one piece of the puzzle and it can drive banks and financial institutions to do banking differently, and that is based on open source technologies, benefitting from all advantages of open source software.

And when banks and financial institutions succeed to implement a completely open IT infrastructure, this next standardization level can be achieved. At the same time another thing can happen, which is a shift in philosophy, namely to start doing banking inspired by open source principles. This infers nurturing cooperation and idea sharing in areas that do not constitute as differentiators to the business of the institution and concentrating to fiercely compete to the best fulfilment of end customer needs.

Banking on open source technologies seems like a very feasible future for FinTech, maybe because it has become more and more clear over the past decade that the future of software is open and that people want to communicate with peers who share common interests.

Therefore, Allevo invites you to join FINkers United, the open community around FinTP and BOOST together the financial services supply chain, element by element.

BOOST is Allevo’s project Banking On Open Source Technologies and is aimed to bridge the gap between banks and open source technologies.

Allevo was invited as one of the partners of the Banking 365 – The future and security of electronic payments event, organized on October 16th, by Oxygen Events with the support of the Romanian Banking Association.

The conference debated on: current regulations concerning electronic payments, what do the future and security of electronic payments look like, online platforms and new technologies, electronic currency, etc.

Allevo, through our business analyst, Andrei Dutescu, brought the perspective of the application provider in the discussion on payment systems and their security and presented the concept behind Allevo’s project BOOST – Banking On Open Source Technologies.

We dedicated this issue to Allevo’s presence at Sibos in Boston this month and to how our new concept BOOST – Banking On Open Source Technologies was received by the financial elite there. Both at the session we have organized on the topic and at the Open Theatre debate.
If you want to find out more, we also present our coverage of the event : Day 1, Day 2, Day 3 and Day 4.
As for the FinTP Idea Contest we announced last issue, the winning idea was: ” Push EBICS to Eastern Europe”.

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