Digital Banking Solution in the Logistics Industry
A detailed analysis was undertaken to scope the project, including:
Structure of the industry and different types of credit union
Legislation governing credit unions
Size distribution and financial performance
Sources of public funding
Key providers of IT infrastructure to the sector
Other service providers (audit, legal, compliance)
Shared resource platforms and outsourcing possibilities
Profile of other credit unions with similar objectives
Drafting operational processes and manuals
Staff availability and optimal head office location
Following this analysis, Promethion decided the optimal solution to meet the client's objectives was to set up a full digital banking platform (online and mobile banking and prepaid debit cards).
The infrastructure to support an online and mobile banking platform was put in place, including evaluation of the system providers and implementation of hardware, database, ledger, credit scoring, AML verification, cloud technology and internet security.
Promethion wrote the operations, compliance, audit and risk manuals and obtained approval from the PRA/FCA to use the digital platform with retail customers. Promethion located the capital providers who included endowments, government grants and corporate sponsors. The project provided a long-term solution to the sector's need to increase funding available for upskilling the workforce in an environment of funding constraints.
The client wished to investigate the possibility of establishing a credit union to provide employees with access to personal financial services and employers with additional finance for staff training and a source of ethically based finance to counter payday and doorstep lenders. Promethion was appointed by the CEO to formulate a business plan, raise debt and equity and obtain all regulatory approvals.
In order to scope the project it needed an in-depth summary of the legal and regulatory issues relating to the project and the professional and IT services available to set-up and support the business after launch.