Temenos, the banking software company, today announced that AlbaCo Limited, a new Scottish business venture, is planning to launch a UK challenger bank for Small Medium Enterprises (SMEs) and has selected Temenos as its core banking platform running in the cloud. The Glasgow-based neobank, Alba, has selected Temenos Infinity, the breakthrough digital front office product, and Temenos T24 Transact, the next-generation core banking product, as well as Advanced Analytics and Payments modules to power its business lines for digital lending and savings. Temenos will provide full hosting and application management services to Alba running on the Microsoft Azure cloud using Temenos Cloud Services, benefiting from an agile implementation to complete project delivery in the shortest timeframe.
Alba joins the raft of innovative challenger banks worldwide that have selected Temenos’ packaged cloud-native software including recent signings Varo Money and Praxia and recent go lives in record time such as Volt Bank, Judo Bank and Grasshopper Bank.
The SME workforce is the backbone of the British economy, made up of 15.6 million people. Yet data from the RFi Group found that over 25% of UK commercial businesses were declined financing in the previous 12 months. In response to this market need, a team of banking experts is creating a neobank to help the underserved SME businesses to access much-needed financial services and realize their potential. Alba expects to receive a banking license from the Prudential Regulation Authority and launch in 2020. The bank’s key differentiator will be its relationship-based model supported by Temenos’ modern digital banking platform, enabling it to be customer-focused and agile, and offer an outstanding and timely banking experience to SMEs.
Alba will use the Temenos UK model bank to implement Temenos Infinity and Temenos T24 Transact, providing a packaged approach that will enable them to go live in the shortest time and at minimum cost. The Temenos model bank approach of providing pre-configured, country-specific functionality will also help Alba meet the UK’s evolving regulatory requirements and business practices in an efficient and cost-effective way. Temenos takes a bank live on its software every single day, helping them to achieve a fast return on investment.
Temenos’ packaged software combines the most advanced cloud technology to allow the neobank to rapidly take innovative products to market. Temenos’ API-first technology will also enable Alba to create digital ecosystems to offer its customers best-of-breed services. The neobank will be running on Temenos Cloud, hosted on Microsoft Azure. Syncordis, a global implementation partner of Temenos, has been selected as the implementation partner of the project to implement the Temenos T24 Transact, Temenos Infinity and digital ecosystem.
Rod Ashley, CEO, AlbaCo Limited, commented: “It is important for us that Alba is ‘born in the cloud’, with market requirements already built in enabling us to set up our bank quickly. Serving both incumbent and challenger banks, Temenos has the knowledge and the ability to deliver a timely, cutting-edge and future-proof digital banking platform. We believe that Temenos’ innovative, end-to-end digital banking platform combined with pre-packaged model bank functionality made Temenos the right choice to help us launch a bank that will offer a personalized experience – one centered around people and support for their businesses.”
Des Noctor, Regional Director, UK and Ireland, Temenos, said: “We’re very excited to be working with Alba and help them redefine the customer experience for small and medium enterprises. We are proud to see the growing momentum of challenger banks both globally and in Europe that are unburdened from legacy systems, choosing Temenos as the most advanced cloud technology in the market. Our cloud-native, cloud-agnostic technology delivers speed and resilience, providing the security and stability a startup bank needs. The elastic scalability eliminates the need to over-provision costly infrastructure as the bank grows. Temenos Infinity and Temenos T24 Transact give a pre-integrated full technology stack – perfect for a new bank like Alba. Neobanks around the world are challenging the status quo and transforming the banking landscape – we’re proud to be part of this evolution.”
Hemal Jayasinghe, Regional Director, Syncordis, added: “At Syncordis, we have over 15 years of experience in implementing Temenos technology and digital transformation projects. We only focus on Temenos software, honing our specialization and working closely with Temenos to successfully implement digital banking projects and set new benchmarks for delivery. We’re delighted to be a part of this exciting project in the UK, as Alba prepares for the launch of its new bank for SMEs.”