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

B.Braun takes charge of production planning with Sage 300 Manufacturing

B.Braun Medical Products South Africa, a leading manufacturer of medical products, has implemented Sage 300 Manufacturing and Production Planning modules in an effort to streamline and automate its business processes.  Read More

Two Oceans Marketing simplifies a complex stock environment with Sage X3 and Sage Inventory Advisor

Two Oceans Marketing has implemented the Sage X3 and Sage Inventory Advisor from Sage Enterprise (Previously Sage ERP Africa) to streamline stock management.  Read More

Riding the wave of West Africa’s digital economy

Companies in Nigeria and the rest of the region who do not embrace the digital world will be at a serious disadvantage to their competitors, says Sage. Read More

Technology driver of other sectors, says Asseco chief

Nigeria’s former Minister of Foreign Affairs, Odein Ajumogobia, has advised businesses wishing to optimise resources and increase production to embrace technology, adding that it is the force that sits at driving seat of economic development. Read More

Uganda’s Infinity Computers awards services, cloud deal to IBM

Leading Ugandan IT services provider Infinity Computers has chosen IBM to deliver cloud, analytics and IT services to support a wide range of new web and mobile offerings for its clients.  Read More

Red Hat Brings Open Source curriculum to EMEA students

Red Hat Academy, an open source education programme, is now available to universities with the required technology and support environments in the Europe, Middle East & Africa (EMEA) region. Read More

Luba Freeport streamlines its sea of paper with Sage X3

Luba Freeport has implemented the Finance and Distribution modules of the Sage X3 business management solution to automate its business processes across finance and operations.  Read More

Microsoft releases Office 2016

On Tuesday, Microsoft Corp. began the worldwide release of Office 2016.  Read More

Harley’s accelerates its business processes with Sage X3

Harley’s Limited, a Kenyan company that imports and distributes medical equipment and pharmaceuticals into the East African market, has streamlined its business processes and improved agility by rolling out the Sage X3 applications suite.  Read More

Global Study finds DevOps a key contributor to bottom line

CA Southern Africa has revealed details of a recent study which shows that having a DevOps strategy helps drive tangible business benefits to enterprises. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks Unlimited

FEATURED STORY

Viber Spreads Good Vibes in Africa with the introduction of public chats Viber Spreads Good Vibes in Africa with the introduction of public chats

Viber, one of the leading messaging and calling apps with more than 664 million unique users worldwide, has opened its latest social channel ‘Public Chats’ to partners in Africa and the Middle East. 

IN DEPTH

Poised for greater heights – Roshi Motman, AfricaCom CEO of the Year WinnerPoised for greater heights – Roshi Motman, AfricaCom CEO of the Year Winner

Roshi Motman is not your average CEO. Since taking up the reins as the first female CEO of Tigo Ghana in 2014, she has led the Tigo brand through a remarkable transformation.