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Cloud computing gives banks freedom to innovate

African banks embrace cloud computing.
Temenos, working with Microsoft Azure, was the first to put core banking in the cloud. Pictured: Scott Guthrie, executive VP of cloud at Microsoft, which has focused investments on Azure cloud services. Source: David Ryder/Bloomberg

Migration to the cloud will empower banks to focus on their core business and devote their capital and resources to better banking solutions – rather than IT.

“The core business of banks is not to run IT. It is to provide efficient financial services to their clients. This is how transformational moving fully into the cloud can be to the banking sector,” says Alan Cole, global head of Cloud Delivery and Operations at Temenos.

Temenos is a leading, global banking software company and, working with Microsoft Azure, was the first to put core banking in the cloud.

Cole says the global banking sector is becoming more and more open to migrating to the cloud as executives recognise how cloud computing can deliver flexibility and agility to their systems that would be impossible to achieve on their own.


“Customers expect to have banking at their fingertips and a cloud-based solution provides banks with the agility to achieve that, increasing the speed to market and reducing the cost of bringing new products and applications to market.”

Cole explains that until recently banks were forced to commit large amounts of capital, as well as time and human resources, to establishing and maintaining their own infrastructure and systems. This means that while disruptors and customers are forcing banks to continuously develop new products, many still devote a lot of time and resources to simply maintaining the complex systems behind their existing functionality. At the same time, these legacy systems can make the process of developing, testing and rolling out new applications much more difficult, time-consuming and expensive.

Cole says that while the days of banks devoting time and money to running their own data centres are numbered, Temenos understands that for many banks complete migration to the cloud will take time.

While banks want to make the most of the legacy equipment they already own, a cloud-based solution allows them overcome the limitations of their current infrastructure.

“If a bank wants to give its clients the ability to open a bank account within 30 seconds, there could be a limit to how many clients could use this function at once. A cloud-based solution allows the bank to make use of a truly elastic platform that scales to meet the demand from its customers at any one time – so whether there are 200 000 people trying open a bank account or only one, the platform can adapt to meet demand.”

Guy Griffin, global commercial manager at Temenos Cloud Services, adds that while the huge investments they have made in their own legacy systems have made some banks hesitant to migrate to the cloud, the African banking sector is much more open to the cloud evolution.

Products to accelerate cloud adoption

Temenos recently launched two new cloud-native and cloud-agnostics products – Temenos Infinity and Temenos T24 Transact – to help banks further accelerate cloud adoption.

“The African banking sector is already far along in its digital journey. While issues around connectivity remain, African infrastructure has also been able to leapfrog certain development steps that other more developed markets like Europe had to go through,” says Griffin.

He adds that the availability of smartphones and cellular networks, and the creation of over-the-air and wireless networks, has enabled a real acceleration of certain elements in the technology journey of African banks.

“This means that the evolution has been expedited in some respects and executives are willing to look outside of the box and work with us to build something that is relevant and scalable to bring new solutions to our clients.”

Griffin says that while regulatory hurdles and concerns over data security first inhibited cloud adoption among banks, this is quickly changing. “One of the key benefits to banking clients when their bank makes use of a cloud-based solution is the added security it brings. If you know that your bank is tapping into a $160 billion security investment instead of just whatever its standalone budget would be, that is reassuring.”

Brought to you by Temenos.

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Sounds all good, till the bank disappears in cloud of smoke!

I agree, these cloud companies overstate there abilities, number of engineers, qualifications, etc. Then late one night when the paw paw strikes the fan the poor bank will realize that they still need their own IT to help them save the day. Secondly these cloud services comes at a price that is much higher that the in-house systems and IT contingent to support it. Another issue is that these cloud server are run above the capacity that would have been the case when on-premise so if there is a sudden requirement for extra capacity there isn’t any.

As a AWS user I disagree.
You can instantly ramp up capacity when you need it, spin up a bunch of instances and when the demand falls away slowly kill these instances and have a massive cost saving, buying 100+ in CPU cores for the 5 mins you might need it when you have peak demand is a total waste of money since most of the time you will need significantly less resources, this pay for only on-demand compute power is a massive game changer, and thanks to things like Multi-A-Z deployment in things like AWS you can really have much better uptime.

Gosh well you don’t know what cloud really is then. Most systems not have built in elasticity to cope with surges in demand. I worked for a bank and I can tell you that all this ‘self made’ stuff wastes resources and money!

Most SA banks really on 90’s tech like SOAP and good luck trying to find a server that can host one’s app! It takes 1 year at SA banks to roll out something that is done and deployed to the cloud in months.

I have witnessed in various companies it is the folks who are against Cloud are the ones who procrastinate and cause massive problems in the company because they are threatened

Nothing is more depressing to an Application Developer like your deployment being rejected by a server Administrator because your document missed a comma somewhere. And this deployment happens at 04:30 on some Sunday morning. The cloud services could enable developers to update systems even on an hourly basis if desired to make a great impact to product delivery

Indeed, one can have CI/CD on the cloud but alas SA banks are just stuck in the usual mentality

Or how about having to wait 12 months for a server to host your app and only find you have to keep submitting lists of IPs and ports you need before even uploading the app.

Admins also like to play god and try to remain in control and pretend they work – waste of workers!

SA banks are just garbage and I won’t work for them ever again

I really should not comment in this thread, as i am the lowest of the low:

As a AWS-user, i run USERMAN to admin the gigs used by a couple of wifi-users!

An expert tutored me by whatsapp-phone to setup everything (i still cannot do it on my own), thus giving me access to a server (with a free IP-address) to run my small little application for a couple of wifi-buildings.

End of comments.



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