Temenos 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 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.
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, all-you-can-consume data plans and better applications, 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.
Andreas Andreades, Temenos CEO comments, ‘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.’
In keeping with the new direction, mobile payments provider Luup will be integrating TEMENOS T24 (T24) banking components as part of it’s growth strategy for their existing mobile payments offering aimed at financial institutions and their customers, from corporates to consumers. Additionally a strategic partnership agreement between Luup and Temenos is expected to open up joint business and growth opportunities.