GENEVA, Switzerland, 10th May 2010 – Temenos (SIX: TEMN), the market-leading provider of integrated core banking systems, today announces that it has signed a definitive agreement to acquire FE-Mobile, a UK based provider of software solutions for the mobile banking industry. The transaction price was not disclosed.
Since its foundation in 2002, FE-Mobile Limited has created a successful range of mobile banking applications. The FE-Mobile solution, marketed under the brand name of SecureLink, operates across three mobile channels providing universal applicability: a downloadable application, XHTML browser and SMS. The solution is secure, simple, versatile, scalable, easy to implement and easy to maintain. What is more, given its flexibility, the product can easily replicate banks’ existing functionality while giving them access to a robust platform for development and significant additional functionality, meaning that it can be marketed to all banks, Temenos and non-Temenos and including those that have already launched some mobile banking services.
In the past, consumers were reluctant to embrace mobile banking given concerns over security, cost, user experience and the limited number of transactions that could be undertaken. With the advent of smartphones, allyou-can-consume data plans and better applications from vendors like FE-Mobile, this is changing. According to ABI Research, in 2015 about 407 million people worldwide will perform financial transactions with their banks using their mobile phones, implying a 40% compound annual growth rate in mobile banking subscribers in the coming years.
Since 2007, FE-Mobile has been a Temenos partner and there is good level of fit between the two organizations. The partnership has already enjoyed success with TEMENOS T24 customers having adopted the FE-Mobile solution and there exists an attractive pipeline of new opportunities – prompting Temenos to move to acquire the business.
Andreas Andreades, Temenos CEO commented, “The acquisition of FE-Mobile follows our identification of mobile banking as an area of strategic investment. Although it is well known that mobile banking has experienced quick adoption in emerging markets, we believe that following the online banking explosion, mobile banking is poised to become a global growth driver. Temenos intends to be at the forefront of this trend. The acquisition of FE-Mobile will allow us to broaden the suite of applications that we can offer to our customers for channel management. Given that FE-Mobile is already our partner, we know we are acquiring a best-in-class solution and also one that is preintegrated with T24. Like the Lydian acquisition in 2008, we believe this acquisition will rapidly create significant value for our customers and shareholders.”
Phil Sorrell, Business Development Director, Mobile – previously CEO FE-mobile commented, “We are delighted that Temenos has decided to acquire FE-Mobile. As part of a larger group, we will have access to significantly more resources to be able to develop and market the product to grow the business. Also, the organizational fit is excellent in that both Temenos and FE-Mobile want to drive this business and share the view that mobile banking transactions will continue to grow in importance, both in developed and emerging markets, as customers seek more flexible and personalized ways of banking. ”
Koen Van den Brande, Front Office Product Director, added, “With this acquisition, we are further enhancing the multi-channel capabilities of T24 to make available a full suite of best-in-class, integrated front office applications that will enable Temenos customers in a cost-effective way to enhance and differentiate their channel experience. We are bringing in-house the considerable expertise and experience of the FE-Mobile team to accelerate our mobile banking development, to bring to market the full range of T24 capabilities for mobile customers, available for and taking full advantage of the rich user experience of the iPhone, Android and Windows Mobile Platforms. It is our intention, moreover, to leverage the platform to build further applications for mobile commerce that will also draw on the capabilities of Insight, Temenos’ business intelligence solution.”
About FE-Mobile
FE-Mobile was founded in 2002 to create a mobile banking, payments and security experience for all consumers not just mobile-savvy early-adopters. FE-Mobile developed high function, multi mobile channel applications that were much easier and quicker to use than solutions based on technically constrained architectures. FE-Mobile had the vision to move beyond pure mobile banking to include m-commerce more generally. The FE-Mobile software platform cuts the cost of ownership, reduces implementation and support costs by using standard server hardware and software and reduces airtime charges for consumers by optimising data exchange.
About Temenos
Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 57 offices worldwide, Temenos serves over 1000 customers in more than 120 countries. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. Temenos’ advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations. Temenos is top of the IBS Sales League Table 2009; winner every year since its launch of the Best Core Banking Product in Banking Technology magazine’s Readers’ Choice Awards and ranks 26th in the American Banker top 100 FinTech companies. Temenos customers are proven to be more profitable than their peers: data from The Banker – top 1000 banks shows that Temenos’ customers enjoy a 54% higher return on assets, a 62% higher return on capital and a cost/income ratio that is 7.2 points lower than non-Temenos customers.
In the past, consumers were reluctant to embrace mobile banking given concerns over security, cost, user experience and the limited number of transactions that could be undertaken. With the advent of smartphones, allyou-can-consume data plans and better applications from vendors like FE-Mobile, this is changing. According to ABI Research, in 2015 about 407 million people worldwide will perform financial transactions with their banks using their mobile phones, implying a 40% compound annual growth rate in mobile banking subscribers in the coming years.
Since 2007, FE-Mobile has been a Temenos partner and there is good level of fit between the two organizations. The partnership has already enjoyed success with TEMENOS T24 customers having adopted the FE-Mobile solution and there exists an attractive pipeline of new opportunities – prompting Temenos to move to acquire the business.
Andreas Andreades, Temenos CEO commented, “The acquisition of FE-Mobile follows our identification of mobile banking as an area of strategic investment. Although it is well known that mobile banking has experienced quick adoption in emerging markets, we believe that following the online banking explosion, mobile banking is poised to become a global growth driver. Temenos intends to be at the forefront of this trend. The acquisition of FE-Mobile will allow us to broaden the suite of applications that we can offer to our customers for channel management. Given that FE-Mobile is already our partner, we know we are acquiring a best-in-class solution and also one that is preintegrated with T24. Like the Lydian acquisition in 2008, we believe this acquisition will rapidly create significant value for our customers and shareholders.”
Phil Sorrell, Business Development Director, Mobile – previously CEO FE-mobile commented, “We are delighted that Temenos has decided to acquire FE-Mobile. As part of a larger group, we will have access to significantly more resources to be able to develop and market the product to grow the business. Also, the organizational fit is excellent in that both Temenos and FE-Mobile want to drive this business and share the view that mobile banking transactions will continue to grow in importance, both in developed and emerging markets, as customers seek more flexible and personalized ways of banking. ”
Koen Van den Brande, Front Office Product Director, added, “With this acquisition, we are further enhancing the multi-channel capabilities of T24 to make available a full suite of best-in-class, integrated front office applications that will enable Temenos customers in a cost-effective way to enhance and differentiate their channel experience. We are bringing in-house the considerable expertise and experience of the FE-Mobile team to accelerate our mobile banking development, to bring to market the full range of T24 capabilities for mobile customers, available for and taking full advantage of the rich user experience of the iPhone, Android and Windows Mobile Platforms. It is our intention, moreover, to leverage the platform to build further applications for mobile commerce that will also draw on the capabilities of Insight, Temenos’ business intelligence solution.”
About FE-Mobile
FE-Mobile was founded in 2002 to create a mobile banking, payments and security experience for all consumers not just mobile-savvy early-adopters. FE-Mobile developed high function, multi mobile channel applications that were much easier and quicker to use than solutions based on technically constrained architectures. FE-Mobile had the vision to move beyond pure mobile banking to include m-commerce more generally. The FE-Mobile software platform cuts the cost of ownership, reduces implementation and support costs by using standard server hardware and software and reduces airtime charges for consumers by optimising data exchange.
About Temenos
Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 57 offices worldwide, Temenos serves over 1000 customers in more than 120 countries. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. Temenos’ advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations. Temenos is top of the IBS Sales League Table 2009; winner every year since its launch of the Best Core Banking Product in Banking Technology magazine’s Readers’ Choice Awards and ranks 26th in the American Banker top 100 FinTech companies. Temenos customers are proven to be more profitable than their peers: data from The Banker – top 1000 banks shows that Temenos’ customers enjoy a 54% higher return on assets, a 62% higher return on capital and a cost/income ratio that is 7.2 points lower than non-Temenos customers.