Interswitch has partnered with Temenos to offer managed banking services across Africa, targeting core banking upgrades and larger bank IT budgets.
Interswitch is partnering with Temenos to offer managed banking services to financial institutions across the continent. The move positions Interswitch to compete for a bigger share of banks’ technology budgets, not just payments processing.
Temenos is a Switzerland-based banking software provider. Its products typically power “core banking”, which is the main system a bank uses to run customer accounts, loans, deposits, and daily transactions.
Under the partnership, Interswitch will adopt Temenos technology across several areas. These include core banking, digital banking (the apps and online tools customers use), payments, wealth management (tools for investing and portfolios), and financial crime management (software that flags suspicious activity like fraud and money laundering).
Interswitch says it will offer these capabilities as managed services. That means banks can outsource running and maintaining the software to Interswitch, instead of building large internal teams. The services will be available as cloud-hosted options, meaning the software runs on remote servers like rented computing, and on-premises options, meaning the software runs inside the bank’s own data centre.
Many African banks are replacing ageing banking systems that are costly to maintain and hard to update. That creates demand for vendors that can deliver upgrades faster and keep systems stable.
The market is also getting more competitive. Payments companies are increasingly moving “up the stack” into broader banking infrastructure, where contracts are larger and stickier because switching core systems is difficult.
In Nigeria alone, TechCabal previously reported that six banks spent ₦268.7 billion, about $171.5 million, on IT infrastructure in 2024, including core banking upgrades. If similar spending continues across more markets, managed banking services could become a major growth line for Interswitch.
For banks, the pitch is simpler operations and quicker product launches. For Interswitch, the upside is deeper relationships with banks that can extend beyond payments into the systems that run the bank itself.
Primary Source: Techcabal
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