Temenos inks cloud partnership with Huawei, eyes expansion in China, Asia-Pacific
Software provider to offer cloud-native core banking solution on Huawei’s public cloud
Bank software provider Temenos is eyeing an expansion into the Chinese market under a deal inked with IT giant Huawei, announced Thursday.
Image via Temenos
Temenos will offer its cloud-native core banking platform on the Huawei public cloud under a new partnership announced at the Huawei Intelligent Finance Summit 2021 held in Shanghai, China.
The cloud-native offering, rolled out by Temenos in May, includes access to a fintech marketplace for banks, allowing them to integrate services offered by third-party providers like Plaid, Taurus, Tink and Wise.
“This joint go-to-market strategy with Huawei will massively accelerate our market penetration in China, which represents approximately a $6 billion addressable market,” Philip Barnett, president of strategic growth at Temenos, told Bank Automation News. The partnership will also extend to the Middle East, Africa, Europe and Latin America.
Currently facing strict U.S. sanctions on its phone manufacturing business, Huawei is eyeing an expansion in the software market, according to a May report by Reuters. Huawei CEO Ren Zhengfi said in an internal memo, reviewed by Reuters, that the company is focusing on software because development in the field is “outside of U.S. control and we will have greater independence and autonomy.”
Temenos may also be looking to capitalize on the growing demand from banks to move some of their workflows to cloud-based infrastructure, as evidenced in deals signed between Microsoft and the $1.1 trillion Morgan Stanley, and IBM Cloud with the $2.2 trillion Bank of America. Using cloud-based infrastructure offers more flexibility to banks since adding new features doesn’t require a core technology upgrade, Stephen Greer, senior analyst with the research and advisory firm Celent, previously told BAN.
“By strengthening partnerships, we can solve problems and create value for customers together, expand the cake, and open up new growth space for the finance industry,” Ma Yue, executive vice president at Huawei’s enterprise business group, said in a statement.
Temenos did not respond to a request for comment seeking additional details on the deal and about the timeline for rolling out its offering on Huawei’s cloud infrastructure.
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