Renaissance Credit (RenCredit), a new microfinance institution in Lagos, Nigeria, has launched on Temenos T24 for Microfinance and Community Banking (MCB), hosted in the cloud on Windows Azure. The system went live just two months from signing, demonstrating the ease of implementing cloud technology as part of the modern banking revolution.
RenCredit, a subsidiary of Renaissance Group, is supporting the aspirations of the growing middle class in Nigeria. It aims to provide broader access to consumer credit in Nigeria, which will support the country’s move from a cash-based to a transaction-based society.
Opting for a cloud-based core banking system enables RenCredit to operate a pay-per-use model, meaning the bank can scale its IT infrastructure to fuel seamless expansion into other African regions, at low risk to the business. Temenos has created a model bank template and seamlessly integrated loan origination and biometric bolt-ons into the system, in addition to establishing connections to local electronic payments channels. This is a replicable model allowing RenCredit to access a pre-built infrastructure directly from the internet.
RenCredit will provide personal loans, street-level microfinancing, retail deposits and point-of-sale (POS) agreements whereby consumers purchasing from retailers will take a loan direct with RenCredit in exchange for goods. This triple lending function means RenCredit computes large volumes of transactions through which the business relies on a credit scoring engine provided by Experian. This software works with the Temenos cloud solution for advanced decision making on all loans.
George Taylor, chairman of Renaissance Credit Nigeria, said: “Microfinance is serving a huge market need in Africa, bringing credit lines to the ‘unbanked’. Renaissance Credit offers a compelling proposition to Nigeria, coupling microfinance loans, with POS lending. Temenos delivered our core banking system in just two months – that is surely a record. We will benefit from high levels of security, reliability, availability from Temenos, and the latest functionality as the upgrades to the software are taken care of by Temenos and Microsoft Windows Azure. Renaissance Credit’s mission is to provide a unique microfinance service and T24 MCB in the cloud allows us to concentrate fully on that goal, with no distractions.”
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