Switzerland-based core
banking, Temenos, has entered into a strategic partnership with
India-headquartered IT, consulting and outsourcer Wipro, to deliver
core banking on an Application Service Provider (ASP) model to
European banks.
Under the agreement,
Wipro will provide banks with a solution based on Temenos’ T24 core
banking solution, accessed over the internet and charged based on a
per use or monthly fee.
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Wipro and Temenos
decided to launch the service to meet significant and growing
demand for an ASP offering from small and medium sized banks and
new market entrants.
Daniel Mayo, principal
analyst, Financial Services Technology, Ovum said:
“Following a recent
survey conducted by Ovum into banking strategy, there is increased
demand for ASP models in Europe at a country specific level, most
notably in Spain, Benelux, France and Switzerland, as well as
countries with established data processing models like
Germany.”
Andreas Andreades, CEO,
Temenos, said:
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By GlobalData “There are more
than 8,000 banks in the European Union, the vast majority of which
are small and medium-sized entities holding on average assets of
less than $3bn and for which core system replacement is a very
expensive and mostly out of reach activity.
“There are also many new
banks wishing to enter the traditional European banking markets
seeking to exploit a fast changing landscape in banking.
“Providing T24 on an ASP
basis will allow us to offer an exciting product to a new market
segment which is otherwise unaddressable.”
In a separate statement,
Temenos announced first quarter results for the three months to 31
March.
Adjusted EBIT (before
restructuring charges and amortisation of acquired intangibles) was
$5m in the quarter, 60% lower than in the corresponding period last
year.
Revenue for the first
quarter increased by 10% to $103.1m.
Licence revenue was 3%
ahead year-on-year at $28.1m.
Like-for-like licence
growth increased by 6%, while maintenance revenues increased by 39%
to $49m.
