As part of the Temenos Community Forum, Finextra spoke with Craig Bennett, chief commercial officer of APAC at Temenos, and Simon Beitz, CEO of Alex Bank, about the influence of cloud technology on the growth of neobanks in the APAC region.
Banks in the APAC region have been increasingly adopting cloud solutions, particularly in Australia, where Alex Bank operates. Bennett highlighted the positive trends in cloud adoption across the banking sector, noting that both financial institutions and regulators are becoming more comfortable with this transition. Temenos is actively supporting banks in their cloud journey in places like Brunei and Malaysia.
Alex Bank, recognized as Australia’s first born-in-the-cloud bank, recently achieved an unrestricted banking license. Beitz described this as a significant milestone, explaining that obtaining a banking license in Australia follows a two-step process: starting with a restricted license, followed by an unrestricted license once regulators are satisfied with the bank’s resilience, capability, and capital. He expressed pride in Alex Bank’s achievement of its unrestricted license last December after considerable effort.
While acknowledging that Australian regulators are progressive, Beitz remarked that operating entirely in the cloud presented unique challenges during the regulatory process.
The main advantage of holding an unrestricted banking license for Alex Bank is its capacity to accept an unlimited number of deposits, which in turn enables the bank to expand its loan portfolio significantly. Previously limited to two million deposits and $100 million in lending, Alex Bank is now focused on scaling its operations, having approved over $55 million in personal loan applications to date.
Beitz and Bennett emphasized that the cloud provides cost savings by eliminating the need for personnel to manage outdated on-premises technology. With Temenos managing a secure environment, the bank can concentrate on innovation and meeting consumer needs.
Cloud technology enables banks like Alex Bank to cater to modern consumer demands, offering advanced, personalized services in real time. Beitz noted that through partnerships with Temenos and Microsoft Azure, they can visualize their needs and create the desired customer journey.
Bennett concluded by stating that the cloud allows banks to focus on their core mission—serving their customers. He reiterated the importance of providing a safe and secure platform, allowing banks to concentrate on banking rather than handling technology and data centers. This partnership model enables both Temenos and the banks to leverage their strengths effectively.