Greece’s first challenger bank has chosen bank technology provider Temenos to implement its core banking technology, according to reports in Global Banking & Finance Review on Thursday (Sept. 5). The bank aims to focus on small business (SMB) and consumer lending, as well as digital financial services for its customers. Working with Temenos will enable the bank to offer all-digital onboarding and services for its clients, the company said.
The emergence of challenger banks in Greece signals a strengthening market for the country, the company said.
“In Greece, we are starting to see signs of economic recovery,” said Praxia Bank CEO Anastasia Sakellariou in a statement, adding that supporting SMBs is a key way to further boost economic strength. “As a startup bank, we are starting fresh to build a bank with the customer experience in mind, and without being weighed down by legacy technology,” Sakellariou added.
In another statement, Temenos’ Regional Director for Europe Steen Jensen said Praxia sees an opportunity in Greece’s financial services market. Working with Temenos will help the bank establish “robust, scalable infrastructure” in its effort to grow its loan portfolio to $4.65 billion by 2022.
Earlier this year, Temenos announced a partnership with telecommunications company Telia to power its banking operations, including lending and leasing to retail and corporate clients.
Temenos published research last year, signaling a rising appetite for customers to switch their banking providers. In its survey, 80 percent of businesses said they would be willing to switch providers if it meant access to faster and instant payment capabilities. Corporate treasurers said they would switch for elevated risk mitigation and liquidity management services.
“With 80 percent of corporates in countries without real-time payment infrastructures considering moving their banking relationships within the next year, it’s time for banks to address the move to real-time [payments] by leveraging the latest end-to-end digital software that will allow creation of true real-time services in a single platform,” said Darryl Proctor, Temenos product director for payments in Europe, in a statement at the time.