Banking software provider Temenos has announced that Renaissance Credit (RenCredit), a new microfinance institution in Lagos, Nigeria, will be the first financial institution in West Africa to launch cloud-hosted core banking system.
The system, TEMENOS T24, went live just two months after the deal was signed and seeks to increase the speed and efficiency of RenCredit’s transactions using the cloud-based technology to provide advanced decision making on loans. According to RenCredit, the operation takes, in the majority of cases, less than 15 minutes.
RenCredit provides personal loans, street-level microfinancing, retail deposits and point of sale agreements, which allows consumers purchasing from retailers take a loan direct with RenCredit in exchange for goods.
A major benefit of a cloud-based system is that it operates on a pay-per-use basis which presents the opportunity to expand services without high costs.
Nigeria is seen consistently as a market where the credit possibilities are substantial, especially in the growing middle classes, which now makes up 23% of the population.
RenCredit, a subsidiary of the Renaissance Group investment firm, also plans to expand its product range to point-of-sale (PoS) loans at Nigerian retailers.
Renaissance Credit Nigeria chairman George Taylor 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 point of sale lending…Renaissance Credit’s mission is to provide a unique microfinance service – the cloud allows us to concentrate fully on that goal, with no distractions".