Kenyan MFIs to benefit from low-cost pay-per-use banking software
SOFTWARE| Sept. 13, 2012, noon
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.
MORE SOFTWARE NEWS
Sage Announces the Launch of Sage 50 Accounting in East and West AfricaSage 50 Accounting Africa edition is a full business management solution for Small and Medium Businesses. Read More
F5 turns up the OpenStack heatOpenStack, an open-source software platform used to deliver cloud computing, continues to gain momentum as the basis for both private cloud in the enterprise and a network functions virtualisation (NFV) enabler. Read More
MTN Business partners SMEasy to give entrepreneurs access to easy accounting solutionsMTN Business, in partnership with online accounting tool SMEasy, today announced the launch of an agile, fit for purpose business management and easy accounting solution for small business owners in Kenya – with other markets to follow. Read More
You need to integrate your business solutions. Here’s whyBy integrating business processes and systems, organisations can reduce manual administration and free up time to spend on more value-adding activities, says Sage. Read More
Networks Unlimited event highlights SimpliVity's new Omnistack SoftwareLeading data protection focused distributor invites hyperconverged vendor to discuss disaster recovery and data protection. Read More
Arbor Networks APS earns recommended rating and highest score for Overall Security EffectivenessThe Arbor Networks APS 2800 on-premise distributed denial-of-service (DDoS) protection solution earned a “Recommended” rating and the highest Overall Security Effectiveness score in the first ever NSS Labs’ DDoS Prevention Test Report. Read More
Arbor Networks APS earns recommended rating and highest score in new NSS Labs DDoS Test ReportArbor Networks Inc., the security division of NETSCOUT, has announced that the Arbor Networks APS 2800 on-premise distributed denial-of-service (DDoS) protection solution earned a “Recommended” rating and the highest Overall Security Effectiveness score in the first ever NSS Labs’ DDoS Prevention Test Report. Read More
ProLabs announces range of multicode products compatible with key OEMsProLabs, the leading global provider of network infrastructure and connectivity products, has announced the launch of a new range of multicode compatible optical transceivers. Read More
Agron boosts salesforce with mobile CRM from Sage EnterpriseAgron, one of the leading providers of fertiliser to South Africa’s agricultural sector, has implemented the Sage CRM solution from Sage Enterprise. Read More
Ecowize boosts business efficiency by migrating to Sage 300Ecowize, one of South Africa’s leading hygiene and sanitation service providers, has improved productivity and efficiency by implementing the Sage 300 business management system. Read More
FEATURED STORYFirst-ever Africa Barclays Accelerator programme concludes
Ten fintech companies have concluded the first-ever Barclays Accelerator, powered by Techstars in Africa.
BEST READ NEWS
IN DEPTHEthical Hacking students can’t get a heck of a job
Botswana ethical hacking students report that they are failing to break into the local job market.