Cloud-based bank Judo Capital will adopt Temenos’ core banking platform T24, signing on for its core banking, channels, analytics and financial crime mitigation functionality.
T24 Core Banking will be the key information platform for Judo’s push into the SME market, which the company considers to be under-served by the incumbent banks.
According to Judo, this approach allows the bank the opportunity to connect with third parties as it grows, and to “own” the full customer experience it can deliver through T24 Core Banking, without compromising security or integrity.
It also positions the company to participate in the more open banking ecosystem that Australia is headed toward.
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Judo has established a cloud-based, API-centric, technology ecosystem which will integrate with T24 Core Banking through its zero-trust network and identity management system that tightly controls access to the system without limiting flexibility.
Alex Twigg, co-founder of Judo Capital said, “The engine room of the Australian economy is its small and medium-sized business, which have been starved of the funding that they need to grow by the industrialisation of lending processes by the big banks.
“Consequently, these SME customers have lost the highly skilled banker relationship they so valued, and just haven’t had the support they need.
“Access to credit has become totally constrained by the amount of property security that they have to offer. Judo was created to fix this problem by bringing back the craft of SME lending and building long-standing relationships using true judgement-based lending, based on the four C’s of capacity, character, cashflow and collateral.
“Being a new bank not anchored by legacy computer systems and processes, we can offer a completely different, highly trusted lending experience that is genuinely customer-centric.”
Currently seeking a full banking licence from the Australian Prudential Regulation Authority, Judo required a secure and resilient technology platform that met its regulatory needs – but also with the agility and flexibility to grow rapidly.
Volt Bank is another cloud-based company which began using T24 earlier this year.
It was the first bank to be granted a restricted authorised deposit-taking institution (RADI) licence by Australian Prudential Regulation Authority (APRA), and will initially offer savings and transaction accounts, term deposits and foreign exchange, before moving into personal loans, mortgages and business banking as it transitions to a full licence.
Steve Weston, Co-founder and CEO of volt bank says that it hopes to secure a full banking licence by the end of 2018, at which time it will launch to the public.
“Since the arrival of the internet, customers have become used to consuming services at the speed of light. This immediacy of services is expected from customers in the way we re-process payments and receive transactions.
“Volt aims to transform the way banking is done via adopting a genuinely customer-centric business model and by leveraging best in class technology and data analytics capability.”
Volt is Temenos’ first client in the region to be hosted on Azure. The bank also uses Power BI for data analytics and Office 365, and as a cloud-first business is primed to take full advantage of new and emerging Azure services.
Temenos moved its T24 platform across to the Microsoft Azure cloud close to a decade ago.
More than 3,000 firms worldwide, including 41 of the top 50 banks, rely on Temenos software to process the daily transactions of more than 500 million banking customers.
According to Ross Mallace, head of cloud for Temenos in Asia-Pacific, the company now has 28 regional cloud clients, and has signed four major deals this year with more in the pipeline.
He said, “Whether you’re a start-up looking to launch, and looking to launch with a particular product offering, say term deposits, this solution can manage that. But as you grow your business, in two, three, four years you might want to branch into loans, mortgages and other things, and will you know our software can do it.”