Renaissance Credit, a microfinance institution in Lagos, Nigeria, has launched a cloud-hosted core banking system from Temenos.
T24 for Microfinance and Community Banking is hosted in the cloud on Microsoft Windows Azure, Temenos, a provider of banking software systems based in Geneva, said Monday. The cloud-based core banking system allows Renaissance Credit to operate a pay-per-use model, which could help it scale its IT infrastructure as it expands into other African regions.
Renaissance Credit, which is a unit of the emerging markets investment firm Renaissance Group, will provide personal loans, street-level micro financing, retail deposits and point of sale agreements where consumers purchasing from retailers will take a loan directly from Renaissance Credit in exchange for goods.
"The cloud is rapidly knocking down the barriers to entry within retail banking, and African institutions are capitalizing on this," David Arnott, chief executive of Temenos, said in a news release. "RenCredit has entered the market with minimal IT outlay and has set its sights on continental expansion.
Relieving the bank of IT maintenance allows RenCredit to focus on capturing market share in Nigeria and realize its vision of becoming a leading microfinance lender in Africa. Temenos enjoys working with disruptive market entrants, and recognizes that speed to market and low total cost of ownership are essential when launching a financial institution – T24 model bank is designed for this."
