Interswitch, a prominent African integrated payments company, has partnered with Geneva-based banking software provider Temenos to introduce managed banking services for financial institutions across the continent. This collaboration marks a significant expansion of Interswitch’s presence in the banking technology sector, targeting banks that are modernizing their legacy systems.
Under the terms of the partnership, Interswitch will integrate Temenos’ comprehensive banking technology, covering core banking, digital banking, payments, wealth management, and financial crime management. This integration will enable Interswitch to offer both cloud-hosted and on-premises managed services to lenders in key African markets, including Nigeria, Ghana, Côte d’Ivoire, and Kenya.
Jonah Adams, Managing Director for Digital Infrastructure and Managed Services at Interswitch, stated on Thursday that this alliance represents a pivotal moment for the company as it seeks to extend its reach beyond payments and redefine digital banking solutions for Africa. The strategy aims to position Interswitch as a key technology partner, assisting banks in upgrading critical systems while mitigating the complexities associated with large-scale technology deployments.
African banks are increasingly investing in their IT infrastructure. Six Nigerian banks collectively spent ₦268.7 billion ($171.5 million) on IT infrastructure, including core banking system upgrades, in 2024. The broader banking-as-a-service market in the Middle East and Africa is projected to reach $27.10 billion by 2026, according to Mordor Intelligence, a global market research firm.
By adopting Temenos’ cloud-native, composable platform, Interswitch gains the flexibility and scalability required to support its growth and deliver banking services tailored to the specific needs of African markets, Adams added. Interswitch, founded in 2002, built its reputation through payment products such as Quickteller and Verve, its domestic card scheme that issued over 100 million payment cards by December 2023.
This move places Interswitch in competition with other technology providers in the African market, such as CWG Plc, which partners with Indian multinational financial company Infosys to distribute the Finacle core banking application to major Nigerian banks like First Bank and GTBank.
For Temenos, the deal enhances its footprint in Africa by leveraging Interswitch’s extensive relationships within the banking sector. William Moroney, Chief Revenue Officer at Temenos, noted that Interswitch is an important new customer and partner, and its strong presence across the continent will expand Temenos’ reach and strengthen its ecosystem and partner network.