bank managers recognize clients by their personal names, rather than those of their partners, during initial 1000 days of Union Systems
In the heart of Nigeria's bustling tech scene, Union Systems, a pioneering Nigerian technology company, has made significant strides in developing indigenous software solutions, particularly in the field of trade finance. This article delves into the history and evolution of Union Systems, a trailblazer in local innovation within a domain often dominated by foreign technology.
Established in 1994, Union Systems began as a local partner to international financial software providers. However, it was in 2017 that the company had a chance to become a beacon of hope, a company with a name, a product, and a future. Faced with the challenge of integrating a foreign software with six siloed applications used by a Nigerian bank for unique trade finance requirements, Union Systems rose to the occasion, developing a solution that would change the game: Trade-X.
Trade-X, a modular solution that could plug into any bank's core, local or global, was Union Systems' response to the growing need to support Nigeria’s international trade and banking sectors with tailored solutions that reflect local business practices and regulatory requirements. The result was Kachasi, a fully independent, process-driven, and end-to-end trade finance product.
Wema Bank became the first major user of Kachasi, followed by Fidelity Bank. Fidelity Bank reported a 23% growth in the Letters of Credit commission, which was attributed to the automation of their trade operations with Kachasi. Other banks soon followed suit, with Union Systems now running trade systems for seven Nigerian banks, including Zenith Bank, Coronation Merchant Bank, and FCMB, where Union Systems won a bid in 2020, despite competition from their foreign partners.
The development and implementation of Trade-X strained the relationship between Union Systems and their foreign partner. However, Union Systems now has case studies, references, and metrics to support their work in the enterprise software sector. The success of Trade-X has been instrumental in keeping trade finance as Union Systems' biggest revenue driver and proof of their relevance.
As Union Systems continues to evolve, integrating modern technologies and expanding its features to keep pace with the dynamic financial ecosystem in Nigeria and beyond, it stands as a testament to the power of local innovation in the fintech sector. For those interested in a more detailed history of Union Systems, it is recommended to consult specialized Nigerian fintech archives, corporate histories of Union Systems, or industry reports on Nigerian trade finance technology.
In the evolution of Union Systems, a Nigerian technology company, the development of Trade-X, a modular solution designed to support local trade and banking sectors, marked a turning point in 2017. This innovative indigenous software replaced six siloed applications used by a Nigerian bank for unique trade finance requirements, leading to a 23% growth in the Letters of Credit commission for Fidelity Bank, one of the first major users of the solution.
