Kenyan MFIs to benefit from low-cost pay-per-use banking software

SOFTWARE

|
Image: By BiztechAfrica
Kenyan MFIs to benefit from low-cost pay-per-use banking software

By Semaj Itosno, Nairobi, Kenya

Kenya’s micro-finance institutions are set to access core banking software without the need for huge financial investments following launch of a model where clients can access the software on a pay-per-use basis.

The launch of the cloud-based platform by Swiss-based firm Sofgen would allow micro-finance institutions - including non-bank financial institutions, credit unions, co-operative banks, building societies and smaller banks – the ability to utilise a secure core banking system on a shared model accessed on a pay-per-use basis.

The cloud-based software – Temenos T24, which runs on Microsoft’s cloud platform, Windows Azure) – has been built to enable client financial institutions run the technologies they choose while only paying for what they consume and further does away with the need for an operating system.

Tunde Oladele, Sofgen Africa chief executive officer told BiztechAfrica that micro-finance institutions are faced with increased cases of fraud due to non-robust IT systems and infrastructure due to high acquisition and deployment costs involved, adding cloud-based services and solutions are more cost-effective and allows clients to benefit from the consumption-based pricing model.

 “Sofgen’s cloud platform offers SME banks and microfinance institutions a secure system that can be shared and paid for on a pay-per-use basis. Because they focus on a specific market segment, microfinance institutions have special needs and therefore require customized core banking systems,” said Oladele.

Oladele said Sofgen has partnerships with firms that provide instruments that enable banks and other microfinance providers manage risk more effectively, with a client portfolio of over 30 financial institutions from 12 countries in Africa. In Kenya, the firm’s clients include among others KCB, CBA, K-Rep Bank and Kenya Women Finance Trust.  

The Temenos T24 cloud-based banking software solution, added Oladele, is comparatively cheaper as no operational expenditure and annual license fees to maintain and support continuous investment are required from the client, with the only charges being the annual subscription and on-boarding fees.    

The launch of the Temenos T24 cloud-based software for MFIs by Sofgen comes when the industry is faced with rising cases of online fraud, with a recent research by Deloitte East Africa indicating that East African banks lost Sh4.05 billion to fraud in the last 18 months, up to June 2012. The East Africa region recorded a 25% rise in fraud incidences, compared to a similar period up to 2010.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE SOFTWARE NEWS

Barnstone launches ‘try before you buy’ SAP Hana option

Barnstone has launched a “try before you buy” offering to give companies a risk-free opportunity to try out SAP Hana technology without any significant investment. Read More

Focus Softnet appoints Future Kenya as strategic partner

Focus Softnet, a leading global ERP and software solutions development company, has signed Future Kenya as its new partner in Kenya.  Read More

Office 365 launched in Botswana

Microsoft has launched its newest Windows operating system, Office 365, in Botswana.  Read More

Schneider Electric announces Magelis GTU

Schneider Electric has announced Magelis GTU, the new high performance HMI with smartphone-like navigation. Read More

Microsoft brings Office 365 to more African countries

Microsoft has announced the availability of Office 365 in six new territories across sub-Saharan Africa.  Read More

New version of Schneider Electric’s StruxureWare Plant Operation Ampla now available

Schneider Electric has announced that a new version of Ampla, its innovative software that delivers a dynamic view of process performance, has been made available for the southern African market.  Read More

How the cloud helps SMEs tidy up the IT mess

The cloud offers SMEs a number of benefits when it comes to security and business continuity, saysSage Pastel Accounting. Read More

VMware introduces industry’s most comprehensive virtual desktop and application portfolio

Building on AirWatch by VMware Mobility Momentum, VMware Horizon FLEX will further enable IT to embrace BYO and Macs in the enterprise with local virtual desktops. Read More

Microsoft to help boost Congo media tech capacities

Congo-Brazzaville’s under-resourced and ill-equipped media is set to get a lifeline from global technology giant Microsoft to boost its technology capacities and position themselves for the race of the digital revolution. Read More

VMware enhances vCloud Director for service provider partners

New features enable vCloud Air Network service providers to build hybrid clouds for easy consumption in minutes. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

GSMA: half a billion mobile subscribers in SSA by 2020GSMA: half a billion mobile subscribers in SSA by 2020

The number of unique mobile subscribers in Sub-Saharan Africa will pass the half billion mark in 2020, says a new GSMA report.

IN DEPTH

Africa lags on digital migration Africa lags on digital migration

Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.  

COMPANY NEWS

VMware Study: Businesses can Take Three Weeks to get Employees Mobile-Ready

EMEA businesses say concerns over trust, ownership and delivery capability may hold back taking advantage of the mobile cloud-era.