Japan’s largest aid agency just modernized its lending playbook—and it’s a first. The Japan International Cooperation Agency (JICA) has gone live with Finastra’s Loan IQ platform, marking the inaugural deployment of the widely used lending system in Japan.

The project, rolled out with IBM Japan, represents a big step forward for JICA’s Private-Sector Investment Finance (PSIF) program, which funds private projects in developing economies. As demand for private-sector development financing accelerates, JICA needed more than a patchwork of legacy tools—it needed a globally compliant, scalable platform.

Loan IQ Lands in Japan

Loan IQ is already the backbone of lending operations at many commercial and development banks worldwide. For JICA, its adoption means end-to-end lifecycle management of private-sector loans, including approvals, disbursements, interest calculations, and final repayments.

Crucially, the system supports multi-currency lending—including yen, U.S. dollars, euros, and select local currencies—enabling JICA to meet borrowers where they are.

“We expect this transformation will strengthen our ability to mobilize private capital for development and support increasingly diverse financial structures,” said Taketsuru Eiko, Director of JICA’s Information System Division 2.

Why This Matters

JICA isn’t just another financial institution. As Japan’s primary Official Development Assistance agency, it plays a pivotal role in global infrastructure and social development. With rising demand for private funding to address challenges in developing nations, JICA’s PSIF program is expected to expand.

That expansion requires efficiency, compliance with international standards, and adaptability—boxes Loan IQ was built to tick.

Andrew Bateman, EVP for Lending at Finastra, said: “JICA plays a critical role in advancing sustainable development in emerging markets. We’re proud Loan IQ now powers its private-sector lending operations, enabling it to streamline processes and scale impact.”

IBM Japan’s Role

IBM Japan handled development, data migration, training, and operational support—critical steps in moving a government-linked agency onto a new system. Its track record in public-private finance and prior Finastra deployments smoothed what could otherwise have been a messy transition.

Key Benefits at a Glance

• Streamlined operations: Unified loan lifecycle management reduces manual overhead.
• Flexible product design: Handles complex, evolving loan structures.
• Global standard compliance: Ensures JICA’s systems align with international lending benchmarks.

Bigger Picture

This go-live adds to Finastra’s growing presence in the Asia-Pacific region, where development finance institutions are racing to modernize legacy systems. For JICA, it’s not just a tech upgrade—it’s a strategic pivot to make private capital mobilization faster, safer, and more globally aligned.

And as development agencies worldwide face rising pressure to scale impact with private funding, JICA’s move could be a template others follow.