Faulu bank leaps forward in digital transformation through core banking outsourcing deal

Driven by a strategic technology consortium of MuRong Technology, Huawei, and Computech Limited, the comprehensive digital transformation was executed in a record ten months—a feat that typically takes several years for legacy systems replacement.

Core banking upgrades of this magnitude frequently encounter multi-year delays due to data migration risks and third-party integration bottlenecks. However, a highly calculated database cutover ensured a stable, secure migration with zero disruption to Faulu’s massive customer base. This technical overhaul positions the bank to aggressively scale its operations and bridge the capability gap in Kenya’s hyper-competitive financial sector.

 

 

 

“This upgrade strengthens our ability to serve our clients better today while giving us greater capacity to innovate for the future,” stated Julius Ouma, Chief Executive Officer of Faulu Microfinance Bank. “By shifting away from our legacy framework, we are establishing a highly flexible, cloud-native architecture capable of managing complex transaction processing, credit, and compliance protocols.

We enter our next operational chapter with the capability to process complex transactional volumes, secure real-time payments, and accelerate financial inclusion across our entire network.”

The newly deployed system combines the MuRong M5 core platform with the MuRong IDO digital orchestration engine, running on a cloud-centric, microservices architecture. This merges cutting-edge software with ultra-scalable infrastructure to minimize downtime, maximize concurrency processing, and give the bank the agility to launch new digital lending products in days instead of months.

“Partnering with Faulu allowed us to showcase the true power of agile financial technology,” said Michael Huang, Co-Founder of MuRong Technology. “By deploying our MuRong M5 and IDO systems, we have equipped Faulu with structural scalability and a 360-degree customer view. This cloud-native foundation ensures they can rapidly deploy customer-centric products and handle high-speed transaction volumes with absolute ease.”

To sustain this advanced software layer, the consortium relied on robust, enterprise-grade physical and cloud infrastructure.

“A modern core banking system is only as strong as the infrastructure supporting it,” noted Victor Muganda, Huawei Solutions Architect. “Huawei provided the high-performance cloud servers, advanced storage, and resilient networking hardware necessary to anchor this transformation. Our focus was to guarantee that Faulu operates with robust disaster recovery, unbreakable cybersecurity protocols, and the hardware stamina required for real-time payment handling.”

The rollout seamlessly unifies Faulu’s digital touchpoints into an omni-channel ecosystem. Customers can now access services with enterprise-grade consistency across multiple digital and assisted nodes, including the updated Faulu DigiCash App, enhanced Internet Banking portals, upgraded USSD services (*339#), Agency banking apps, and traditional ATM and Point of Sale (POS) channels.

Crucially, the platform integrates dozens of surrounding systems and national or global financial rails right out of the box. It features native, real-time connectivity to M-PESA, PesaLink, SWIFT, Real-Time Gross Settlement (RTGS), Electronic Funds Transfer (EFT), and centralized check clearing systems.

“Managing an integration of this scale required meticulous coordination,” explained Adam Nyaga, Chief Revenue Officer at Computech Limited. “As the regional delivery partner, Computech focused on stitching the new core seamlessly into Kenya’s complex financial tapestry. We successfully connected the backend to vital domestic and international networks—from mobile money systems like M-PESA to clearing networks like SWIFT—ensuring flawless transaction processing across every conceivable customer touchpoint.”

This architectural upgrade underpins a fundamental realignment of Faulu’s commercial strategy. Long recognized as an institution focused primarily on retail banking and payroll-backed credit, the bank is leveraging its high-speed technology foundation to transform into a dynamic trader’s and merchant bank.

With the upgraded system, frontline officers gain a 360-degree real-time view of customer histories, transaction touchpoints, and active insurance solutions, eliminating operational fragmentation. This enables the bank to launch a comprehensive merchant ecosystem where Small and Medium Enterprises (SMEs) can consolidate disparate payment flows from cash, till numbers, and paybills into a single central portal.

Faulu will use this data-rich portal to analyze operational cash flows dynamically, enabling the bank to lend against real-time business data rather than requiring heavy physical collateral like land or vehicles.

“This is a profound shift in how we communicate our value to the market,” said Gloria Kositany, Senior Manager of Marketing and Communications at Faulu Microfinance Bank.

“We are telling Kenya’s entrepreneurs that we see them, we understand their cash flows, and we no longer need to demand logbooks or title deeds to support their growth. While we maintain our foundational commitment to MSMEs, these advanced capabilities signal our definitive ambition to compete for larger-scale corporate and business accounts as well.”

By leveraging MuRong Technology’s specialized financial software suite along with infrastructure resilience provided by local and international tech giants, Faulu sets a new benchmark for agile transformation within African micro-banking, ready to serve its 24 branches and 150 national agents.