Credit unions move to Temenos SaaS platform

Temenos, Credit Unions
Back: Noel Gilmer and Des Noctor, Temenos. Front: Gerry McConville, Capital Credit Union; Dennis Daly, Tullamore Credit Union; and John Grogan, Credit Union Plus

Community Banking platform to offer personalised experiences with reduced overheads

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10 February 2020 | 0

Capital Credit Union, Credit Union Plus and Tullamore Credit Union have signed a three-year deal with SaaS provider Temenos to move from their on-premise systems to the cloud. The agreement was facilitated by the Credit Union Development Association, a body that enables credit unions to collaborate on activities and projects, which may not be possible as stand-alone entities.

Temenos’ Community Banking platform offers pre-packaged front-to-back credit union products, processes and channels, built on cloud-native, cloud-agnostic and API-first technology. This will enable the credit unions to offer an outstanding digital experience to their members, while enabling them to quickly launch new products and services in response to new market opportunities. The credit unions’ CEOs envisage that the technology partnership will fast-track the delivery of a number of new products, including revolving credit, a wider range of home loans, SME loans and a suite of green, or climate-related, loans.

The system will provide an additional key benefit by reducing the time that staff spend on administration and back-office functions, enabling them to spend more time on value-added activities like offering financial advice and support to credit union members.

Across Ireland, 3.4 million people are members of 241 credit unions, accounting for €18.3 billion in assets. Credit union assets are on the rise, increasing 31% (up from €14 billion) between 2011 and 2019. However, for credit unions to aggressively compete with banks and fintech providers and attract the next generation of members, they need to be able to deliver seamless, personalized experiences more efficiently and they need technology that supports their future growth and innovation.

The three credit unions expect the Community Banking platform will add 10% per annum to their loan growth rates, with Capital Credit Union predicting an additional 10,000 members over the next three years.

“People often ask us how we compete with the banks, but we see the fintechs as our future competition. Our strong community presence is one of our key differentiators – if we couple a strong digital presence with this existing community presence, we will have a winning formula for community banking, and one that our members will appreciate and support,” said Gerry McConville, CEO, Capital Credit Union. “We believe that Temenos Community Banking will drive greater interaction with our members and growth in our share of the personal loan and specialist mortgage markets, allowing us to futureproof the credit union to the benefit of all its members.”

Des Noctor, regional director, UK & Ireland, Temenos, said: “Financial institutions of all sizes, from innovative community credit unions to high street banks, are recognizing that they need to digitally transform. This is why we are delighted to announce our partnerships with Capital Credit Union, Credit Union Plus, and Tullamore Credit Union as they continue to grow and offer their members hyper-personalised experiences and modern cloud-native, cloud-agnostic technology. The flexible deployment capabilities of our Community Banking solution are ideal for the Irish credit union market, delivering the opportunity for a fully managed service that is secure, future proof and affordable. For those that want to deploy on-premise, all of this is also available to their in-house team. We look forward to offering this market-leading technology to many more credit unions in Ireland and around the world.”

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