Johannesburg, 13 Dec 2002
JSE Securities Exchange-listed Global Technology has concluded the first sale of its locally developed TEMENOS eMerge banking system in Kenya, signing a R5 million contract with the Co-operative Bank of Kenya (Co-op Bank).
The contract was won against tough competition over a period of more than a year, with over eight potential suppliers bidding for the business. The deal was won in mid-year, and the bank has gone live with Phase 1.
Co-op Bank is one of the leading commercial banks in Kenya, with a special profile due to its relationship with over 3 000 SACCOs (co-op societies) in Kenya. These SACCOs are both customers and shareholders of the bank. Over time, it is envisaged that these co-op societies may function as branches of Co-op Bank, which will provide retail banking services, leaving Co-op Bank to focus on wholesale banking.
"This will enable the majority of the SACCOs` customers to have access to credit and banking facilities. The relationship between Co-op Bank and the SACCOs will greatly improve the banking services offered at these banking outlets," says Samuel Mutungi, GM Operations of Co-op Bank.
"Emerging economies have opened an opportunity for smaller financial institutions, or micro banks, to capture markets under-served by conventional, large banks," says Ray Leonard, CEO, Global Technology. "These institutions include small banks, credit unions, mutual societies and a wide array of specialised micro-lenders. They have the same needs as larger banks, but on a smaller scale and at a lower cost. It is this gap that eMerge addresses."
eMerge is a fully integrated system that was developed by Global Technology and sold to Temenos, the Swiss-listed banking software developer in which Global Technology has a 15% stake.
"We needed a banking system which would empower the SACCOs and enable them to provide true retail banking products and services to their customers. This is the backbone of the banks strategy which will encourage a mutually beneficial relationship between ourselves and the SACCOs," continues Mutungi. "We intend to license eMerge for four pilot SACCOs as part of their immediate requirement, and to roll it out to the other SACCOs in due course. This will greatly enhance our business relationship with the SACCOs while they retain their autonomy. We believe eMerge will deliver IT-based business competitive advantage."
The system was developed specifically for micro banks, savings and loans companies, credit co-operatives, credit development schemes, managed loan schemes, NGOs, micro finance organisations and other non-bank financial service providers. eMerge has been built on Temenos`s GLOBUS, the most successful banking system in the world, in use by over 250 customers in more than 96 countries.
eMerge offers a real-time financial support environment for retail financial services, while supporting the operational and processing requirements of micro banking.
eMerge supports a broad range of micro banking products, and its flexibility allows it to be customised to precise needs. In addition, it provides comprehensive management information in real-time.
"Our ability to support the African environment and our competitive pricing were key factors in our winning this contract," says Leonard.