Euro Pacific Bank has moved from multiple proprietary systems for its core banking to cloud-based software from Temenos, which will enable it to compete and grow without a huge IT investment.
The international online bank, which serves small and mid-sized companies globally, offers services from retail to investment banking from a single online account.
The three-year-old bank is already using the cloud across its business, but runs up to 10 on-premise proprietary systems for core banking, according to Adrian Murray, vice-president of business development at Euro Pacific Bank.
The bank, which is a hybrid of a private and retail bank, chose Temenos’s T24 banking software in the cloud, using Microsoft Azure based in European datacentres.
Murray said there are two main advantages: the reduced cost of running the IT; and the ability to scale IT quickly, easily and cost-effectively to support more customers. As a new online bank, it needs to be able to add customers quickly and efficiently.
The cloud-based systems ensure availability, which is critical as the bank allows its customers to access its full range of services via a single online account.
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“We chose Temenos’s T24 banking software because we wanted a modern, globally renowned system with a high level of automation,” said Murray. “With a cloud-based solution we are able to offer a service that is comparable to the best private banks at a price point comparable with fintech startups.”
The bank has a small number of IT staff and outsources the majority of IT work. “Without a cloud-based infrastructure, we could not compete,” he added.
Murray said as more challenger banks emerge the cloud will become increasingly used for core systems, predicting that more banks would start off in or move to the cloud when they realise the cost benefits.
There is a lot of room for cloud growth in financial services. Matthew Addison, head of cloud at Temenos, said out of about 2,000 customers globally, about 20 are so far in the cloud. He said the interest is from startup challenger banks and large banks experimenting.