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
Mark Bannerman named Country Manager for Red Hat in Sub-Saharan AfricaRed Hat, the world’s leading provider of open source solutions, today announced the appointment of Mark Bannerman to country manager for Red Hat in sub-Saharan Africa. Read More
VMware unveils next wave of innovation for applications and desktop virtualization in Horizon 6VMware, the global leader in virtualization and cloud infrastructure, has announced a new release of VMware Horizon 6. Read More
Westcon only Symantec distributor in SADCWestcon has announced that long-time vendor partner Symantec has extended the value-added distributor’s footprint in the SADC region. Read More
Sage One Accounting, MTN Business to storm African cloud marketThe Sage One Accounting cloud accounting software is now available in a number of major markets throughout sub Saharan Africa, following a partnership between Sage Pastel Accounting and MTN Business. Read More
Introducing VMware vSphere 6 – The foundation for the hybrid cloudVMware has announced VMware vSphere 6, the newest edition of the industry-defining virtualisation solution for the hybrid cloud and foundation for the software-defined data centre. Read More
4 Signs that it is time to replace your ERP systemIt is a good idea to do a frequent gap analysis to see whether your ERP system still meets your needs. Read More
Sage ERP X3 helps Brent Oil keep pace with volatile industryBrent Oil, South Africa's largest and fastest-growing non-refining fuel wholesaler, has implemented the Sage ERP X3 enterprise application suite to tighten financial controls, improve efficiencies, and streamline its business processes. Read More
Barnstone launches ‘try before you buy’ SAP Hana optionBarnstone 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 partnerFocus Softnet, a leading global ERP and software solutions development company, has signed Future Kenya as its new partner in Kenya. Read More
FEATURED STORY2bn priced out of internet access
A new report from the Alliance for Affordable Internet shows that the price of broadband remains prohibitive for billions in developing and emerging countries, with women and rural dwellers hardest hit.
BEST READ NEWS
IN DEPTHVillagers get solar training at Barefoot College
The Botswana Human Resource Development Council (HRDC) has seconded seven semi-illiterate mostly Ngwatle villagers for a six month solar electrification training course at the famed Barefoot College in India.
COMPANY NEWSMicrosoft 4Afrika launches Biz4Afrika online SME hub
Microsoft 4Afrika used the opening of the Connected East Africa event in Diani, Kenya today to launch Biz4Afrika, an online hub providing Kenyan small and medium enterprises ...