Temenos (SIX: TEMN), the banking software firm, has confirmed that KAF, a diversified financial services conglomerate in Malaysia, has chosen the Temenos Banking Cloud to introduce a digital lending business.
KAF will reportedly be using Temenos Banking Services for handling retail loans and Islamic financing offered via the Temenos Banking Cloud in order to provide conventional and Islamic products.
KAF’s expansion into the retail market reflects a critical requirement for digital finance in Malaysia, with consumers and businesses facing great economic challenges and lockdown-related restrictions limiting access to physical branch locations.
By offering an intuitive digital onboarding and origination experience, KAF intends to provide clients digital straight-through loan processing that focuses on improved accessibility and greater affordability.
KAF’s plans extend beyond just lending to include digitalization of a range of financial products and services, which includes asset management, investment banking and stockbroking.
With regulatory clearance, the Temenos Banking Cloud should allow the bank to easily turn on new financial services in order to expand its product offering and scale in an efficient manner. The agility provided by the Temenos Banking Cloud to innovate and bring various products and services to market quicker should give KAF a competitive advantage.
Demand for digital financial services in Malaysia has increased considerably since the beginning of the COVID-19 crisis.
Last year, Malaysians carried out RM 460 million in mobile banking transfers – which represents a 125% increase compared to the last financial year.
The Malaysian government’s Movement Control Order served as a key driver or catalyst, assisting with adding 3 million mobile banking service subscribers in 2020, pushing digital wallet usage and adoption to record highs.
Jean-Paul Mergeai, President, APAC – EMEA, Temenos, stated:
“We are proud to welcome KAF, a trail-blazing bank and the first in Malaysia on the Temenos Banking Cloud. There is a huge opportunity for digitalizing financial services in Malaysia and with our open banking platform, KAF is well-positioned to capitalize on that growth. With new entrants in the digital space, the ability to self-provision financial services at the click of a button will be a real competitive advantage for KAF.”
Thariq Usman Ahman, Deputy CEO, KAF Investment Bank, remarked:
“We chose Temenos as we needed the agility and speed of a SaaS solution, and only the Temenos Banking Cloud offered the breadth of financial services functionality to meet our current and future needs. Critically, it enables us to bring together digital lending for conventional and Islamic products on a single platform and seamlessly extend to full digital banking services. With Temenos, we will lead the way in bringing new and exciting digital financial products and services to all Malaysians.”