EMTECH

Digital infrastructure for emerging market central banks

Company: Emtech provides a cloud-based software designed to provide central banks in emerging markets with scalable and resilient digital infrastructure.

HQ Location & Year Founded: New York, 2019

Founder: Carmelle Cadet, Founder and CEO, is a mission-driven founder who brings to Emtech more than 10 years of experience at IBM, where she was a leader in Blockchain, financial services and risk management. Carmelle holds a bachelor’s in finance from Florida Atlantic University and an Executive MBA from NYU’s Stern School of Business.

Funds Raised and VC Investors: $4 million from 500 Global, Canaan Partners, Consonance Investment Managers, Gilgamesh Ventures, Loftlync Capital Management, NetX, Noemis Ventures, Octerra Capital, XFactor Ventures

• Where did the idea for Emtech originate?

I was born in Haiti and moved to the US as a teenager. My family was unbanked when we arrived here and I became interested in how technology and financial services could help solve challenges in emerging countries and low income groups. Most of my career prior to Emtech was spent at IBM, where I helped to build an enterprise software business from 0 to $100 million of ARR. I then left to work as Deputy CFO of the Blockchain division. This is where I had my lightbulb moment to create better financial markets. I wanted to build a platform that would leverage Blockchain technology to digitize cash and solve the problem of financial inclusion. After having done a project for the Central Bank of the Bahamas, I decided to take that experience and apply it to developing next-generation modern banking for Central Banks in Africa, where I saw the greatest opportunity.

• What is the key problem that Emtech intends to solve? 

We have taken a platform approach to designing a SaaS solution that allows Central Banks to have API access to retail banks and fintech companies, such as fully digital neobanks, that would help de-risk financial services. 

• How are you most differentiated as a service?

We build modern infrastructure that sits between these institutions and utilizes modern financial infrastructure. Emtech provides a cloud SaaS model that is modern, more efficient, and charges a simple license fee to Central Banks with API call fees to users. Our focus is West Africa, where we have signed three Central Banks and are in talks with six more. Our platform provides currency exchange and digital compliance services, all-in-one. It is built for multi-country exchange. Banks can’t close the gaps for financial inclusion all on their own. They don’t have the KYC and regulatory frameworks in place to work in the fintech sandbox with digital currency. 

• What are the company’s key accomplishments to date?

Emtech’s platform has gone live with the Bank of Ghana through a multi-year contract. We are busy rolling out in Nigeria and Liberia. We are also helping fintechs and working with accelerator hubs. Our solution helps fintech get to market faster.

• What lies ahead in the plans for Emtech?

We expect to have six countries converting over the coming months, which will get us to $100M ARR within 3-5 years. We will launch a multi central bank strategy in collaboration with several partners, including Visa. Longer term, we also plan to enter the US market, which presents its own challenges and opportunities. 

Ron’s Take

The institutional and regulatory barriers to offering credit and capital to all are in the midst of a massive disruption. This is thanks in large part to the neobanks and other fintech companies that are leveraging digital technologies such as AI, machine learning and Blockchain to tackle these challenges. The chicken-and-egg problem of people not being able to borrow because they don’t have credit history is a solvable one when intelligent systems are brought into play. The capital sources that begin with a country’s Central Bank institutions must be ready and adaptable to meet these challenges. This requires the kind of infrastructure layers that Emtech is providing. Having already signed licensing agreements with several Central Banks of Africa, we can expect to see Emtech empowering millions more across the world who seek personal and small business loans over the years to come.