Interswitch Enters Managed Banking Services Market with Temenos Deal
In a significant move to diversify beyond its payments roots, Interswitch has partnered with banking software provider Temenos to offer managed services across core banking, digital channels, and financial crime management. This strategic alliance positions Interswitch as a comprehensive technology partner for lenders seeking modern solutions on the continent.
Expanding Capabilities Across Key Banking Functions
The partnership will see Interswitch leverage Temenos’ cloud-hosted platform to provide end-to-end managed services covering:
- Core banking operations
- Digital customer experiences
- Payments processing
- Wealth management solutions
- Financial crime prevention
This expansion addresses a growing need in African markets where banks are seeking to modernize aging infrastructure and comply with evolving regulatory requirements.
Market Opportunity & Competitive Landscape
The banking-as-a-service market in the Middle East and Africa is projected to reach $27.1 billion by 2026, driven by increased demand for digital financial services and cloud adoption. Interswitch’s entry into this space puts it in competition with established players like CWG Plc (partnered with Infosys) which already serves major Nigerian banks including First Bank and GTBank.
In 2024 alone, six leading Nigerian banks invested ₦268.7 billion ($171.5 million) in IT infrastructure upgrades - highlighting the significant market potential for comprehensive banking technology solutions.
Strategic Benefits for Both Companies
For Interswitch, this represents a natural evolution beyond its payments leadership into broader financial technology services. The partnership leverages their existing pan-African footprint and deep customer relationships to offer integrated solutions that address multiple banking needs.
Temenos gains access to Interswitch’s extensive network across the continent while strengthening its position in a key growth market through a trusted partner.