GENEVA, Switzerland – February 10, 2020 – Temenos (SIX: TEMN), the banking software company, today announced that it has signed three new Irish credit union clients for its Community Banking offering. All three will be moving from legacy, on-premise systems to Temenos’ front-to-back Software as a Service (SaaS) offering in order to digitally transform their business and prepare for growth.
The three credit unions expect that the new Community Banking platform will add a further 10% per annum to their already strong loan growth rates. They also believe it will attract many new members, with Capital Credit Union predicting an additional 10,000 members over the next three years.
Across Ireland, 3.4 million people are members of 241 credit unions, accounting for €18.3 billion in assets. Credit union assets are on the rise, increasing 31% (up from €14 billion) between 2011 and 2019. However, for credit unions to aggressively compete with banks and fintech providers and attract the next generation of members, they need to be able to deliver seamless, personalized experiences more efficiently and they need technology that supports their future growth and innovation.
The Community Banking platform, powered by Temenos SaaS, offers pre-packaged front-to-back credit union products, processes and channels, built on modern cloud-native, cloud-agnostic and API-first technology. This will enable the credit unions to offer an outstanding digital experience to their members, while enabling them to quickly launch new products and services in response to new market opportunities. The credit unions’ CEOs envisage that the technology partnership will fast-track the delivery of a number of new products, including revolving credit, a wider range of home loans, SME loans and a suite of green, or climate-related, loans.
Temenos Community Banking will provide an additional key benefit by reducing the time that staff spend on administration and back-office functions, enabling them to spend more time on value-added activities like offering financial advice and support to credit union members.
Gerry McConville, CEO, Capital Credit Union, commented:
“People often ask us how we compete with the banks, but we see the fintechs as our future competition. Our strong community presence is one of our key differentiators – if we couple a strong digital presence with this existing community presence, we will have a winning formula for community banking, and one that our members will appreciate and support. We believe that Temenos Community Banking will drive greater interaction with our members and growth in our share of the personal loan and specialist mortgage markets, allowing us to future-proof the credit union to the benefit of all its members.”
John Grogan, CEO, Credit Union Plus, commented:
“Between mergers and organic growth, Ireland’s credit unions are going though momentous change and we are happy to be at the forefront of these exciting developments. Our aim in this collaborative initiative is to reciprocate member loyalty and trust with the convenient, scalable and secure delivery of a range of contemporary financial services.”
Dennis Daly, CEO, Tullamore Credit Union, commented:
“Once the Temenos Community Banking system is fully operational, all our members will benefit from reduced paperwork, increased transaction speeds and an expanded services offering. While members are incredibly loyal to their community credit unions, many also feel the need to have accounts with a large bank and/or new fintech entity. This new system is intended to satisfy members’ full range of banking services needs, thereby negating the need to have accounts elsewhere.”
Des Noctor, Regional Director, UK and Ireland, Temenos, said:
“Financial institutions of all sizes, from innovative community credit unions to high street banks, are recognizing that they need to digitally transform. This is why we are delighted to announce our partnerships with Capital Credit Union, Credit Union Plus, and Tullamore Credit Union as they continue to grow and offer their members hyper-personalized experiences and modern cloud-native, cloud-agnostic technology. We are delighted to expand our presence and leadership in Ireland, and bring revolutionary technology that drastically reduces time-to-market, cost, and operational complexity, to more financial institutions. The flexible deployment capabilities of our Community Banking solution are ideal for the Irish credit union market, delivering the opportunity for a fully managed service that is secure, future proof and affordable. For those that want to deploy on-premise, all of this is also available to their in-house team. We look forward to offering this market-leading technology to many more credit unions in Ireland and around the world.”
The agreement was facilitated by the Credit Union Development Association (CUDA), a credit union-owned body that enables credit unions to collaborate on beneficial activities and projects, which may not be possible as single stand-alone entities.