Temenos the provider of banking software has launched a complementary go-to-market model using Microsoft technologies to address affordable access to finance in emerging markets. Temenos is utilising the Windows Azure platform to offer TEMENOS T24 (T24) in the Cloud and has reported the successful implementation of this software offering in a network of six Mexican microfinance institutions (MFIs), which went live in May 2011.
This represents the first live instance of core operations being run on the Azure platform. Temenos also is now offering its cloud computing based solution in Africa, to be followed by South and Southeast Asia as well as other markets.
T24 on the Windows Azure platform enables financial institutions to move operations to a low cost consumption-based pricing model. Banks no longer need to expend time and budget on provisioning and operating hardware resources — running T24 natively on Windows Azure enables them to scale resources effectively and increase volume according to customer demand.
“Today, IT virtualisation is gaining traction in the microfinance sector as more MFIs recognise the cost efficiencies of running their operations in this way,” said Murray Gardiner, director, Microfinance and Community Banking, Temenos. “The infrastructure investment around cloud technology being made by Microsoft and Temenos leverages the strength of Temenos’ global market position and focuses on achieving a common goal: the transformation of the microfinance sector”.
Simon Witts, corporate vice president, Enterprise & Partner Group, Microsoft Corp. said, ““Meeting this challenge in emerging markets will require turning a latent demand for financial services into an effective demand for real financial products. With the Windows Azure cloud infrastructure, Microsoft and Temenos are engaged in providing these services to microfinance institutions and, together, we are helping to lead the transformation of financial services for the 2 billion people living on less than $2 per day.”
“Today’s announcement marks a major technology milestone in the financial services industry,” said Bob Hunt, senior research director, Retail Banking and Cards Practice, TowerGroup. According to Hunt, “the financial services industry wants to ensure that cloud computing can provide the security, reliability and functionality needed for mission critical processing. Although TowerGroup expects that the banks and vendors will transition critical functions to the cloud on a gradual basis, the journey has clearly begun.”
