Temenos (SIX:
TEMN), the market leading provider of banking software, today announces
that Cambodia's leading commercial bank, Acleda Bank is upgrading to T24
R12 - the latest version of Temenos' core banking system - expected to
go-live in Q1 2013.
Over the past decade, T24 has been the backbone of ACLEDA's IT
infrastructure, helping to grow its profits at a compound annual rate of
30%. ACLEDA's work with Temenos is part of an aggressive strategy to
connect with the unbanked across Cambodia - global financial indicators
report that only 4% of the country's population have a formal bank
account [1]. This figure demonstrates the huge expansion opportunities
available in Cambodia for ambitious retail banks, calling for the latest
in core banking technology to help manage large customer on-boarding
numbers.
Originally a microfinance institution, ACLEDA evolved into a full
retail bank in 2004 and now has a 238-strong branch network across
Cambodia, with an asset size of $1.9 billion. Its year-on-year growth in
assets has ranged between 28-46% over the last five years, averaging at
33%. ACLEDA anticipates customer acquisition to double over the next
five years, adding to its existing one million account holders. Temenos
played a crucial role throughout this period, providing a low cost,
flexible and scalable platform that allowed ACLEDA to expand its
operations and differentiate its offering, whilst extracting the
operational efficiencies of this growth. Intrinsic to ACLEDA's
continuing success is T24 R12's faster processing power, having the
ability to compute larger data volumes and increase efficiencies across
the business at a low total cost of ownership (TCO).
Dr. IN Channy, CEO, ACLEDA Bank, commented: "We are experiencing huge
expansion opportunities to connect with the unbanked and this upgrade
project is part of our aggressive strategy to do just that. Testament to
our efforts, our customer base has recently hit the one million mark.
We always aim to serve our customers at the highest possible standard
and T24 makes this possible by providing the flexibility to react to
consumer demand with functionality to support rapid product development.
In turn, this increases our profitability and ultimately our loan base
which will grow alongside our customer numbers - taking control of our
bottom line.
"We have always been an advocate for T24 and will continue to use the
technology in the long-term. Our staff are very familiar with how to
easily maintain the solution, increasing our efficiency levels. Unlike
other international and local vendors, Temenos can get a project up and
running in as little as six months - time to market being a deal breaker
for a growing institution like us, which needs fast roll-outs."
David Arnott, CEO, Temenos, commented: "The key to banking the
unbanked is cost of provision, rather than problems of access or demand.
As ACLEDA has grown and expanded beyond microfinance to fully-fledged
retail banking, T24 has enabled it to extract economies of scale, and as
such, lower the cost of providing basic banking services. This has been
key to ACLEDA's ability to grow customer numbers and revenues so
quickly."
ACLEDA's accomplishments have been recognised by the Association of
South East Asian Nations (ASEAN) and its business advisory council,
winning the award for growth and employment at the 2012 Most Admired
Asian Enterprise awards ceremony.
David Arnott continued: "With plans in the pipeline from ASEAN to
expand the Cambodian connectivity infrastructure to help support the
population's banking needs, it is the opportune time for Cambodian
institutions to implement the latest core banking technology. This will
enable financial institutions to promptly respond to market forces
through innovation and product development, ensuring the best customer
service possible and the lowest cost of provision."
[1] Global Financial Inclusion Database (Global Findex)
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