THE BEST OF TECHNOLOGY ENABLING THE NEW SME EXPECTATION
Small and medium-sized enterprises ( SMEs ) are the backbone of the economy in Asia and Australia . In fact , in Australia , the SME sector has created over 5 million jobs and employs around 40 % of the nation ’ s workforce . SMEs account for 33 % of the country ’ s GDP and pay over 12 % of total company tax revenue . SMEs are essential for Australia ’ s future stability and growth , therefore , should be a priority for the banks today .
However , the SME sector is the most underserved market in the region , often regarded as too expensive and risky to serve . For banks seeking to target this outstanding opportunity , it ’ s important to remember SMEs are a very diverse demographic . They range enormously in scale and ambition , from fast growth tech start-ups to stable , medium-sized manufacturing businesses .
In order to serve the needs of the SME sector , financial institutions need to invest in technology platforms and digital channels which provide services that help SMEs better manage their operations . Crucially , the changes needed to deliver these goals must also be initiated across all levels in the organisation - structural , operational and technological .
One financial institution taking this challenge head-on is challenger bank , Judo Bank . Shaking up the status quo , the bank has zeroed in on the SME segment , forging meaningful relationships with companies with a turnover of up to AUD $ 20mn . Judo CIO , Alex Twigg , summarised the firm ’ s core ethos by noting that : " Judo ’ s mission is to bring back the craft of relationship banking , powered by the best of modern technology .”
To make this vision a reality , Judo teamed up with the world ’ s leader in banking software , Temenos , who partner with banks and other financial institutions to transform their businesses and stay ahead of a changing marketplace . Over 3,000 firms across the globe , including 41 of the top 50 banks , rely on Temenos to process both the daily transactions and client interactions of more than 500 million banking customers . Temenos offers cloud-native , cloud-agnostic front office and core banking , payments , fund management and wealth management software products , enabling banks to deliver both consistent , frictionless customer journeys and gain operational excellence .
Judo has leveraged Temenos ’ global expertise and 25 years of experience in providing proven , packaged , upgradeable software , selecting Temenos T24 Transact , Analytics , Financial Crime Mitigation and Channels – a module of Temenos Infinity – running on Temenos Cloud . By leveraging advanced API-first architecture , Temenos T24 Transact will integrate with Judo ’ s existing systems via its zero-trust-network and identity management system , allowing third-parties to connect easily and creating an open banking ecosystem .
As a challenger to the market , Judo was looking for a strategic technology partner that was well-known and established in Australia . Moreover , the technology needed to be able to support Judo in the long-term , and have a full set of products and features , that would enable it to get to market very quickly .
Enabling customers with self-service apps whilst still maintaining an appreciation for human contact , Judo is transcending channels and touch-points to create a unique journey based on customer needs . Twigg outlines that the company ’ s partnership with Temenos has helped to make this vision a reality .
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With the big banks ’ shift to industrialisation and centralisation , SMEs have lost the human interaction and tailored service that they so deserve and crave . Judo ’ s mission is to bring back the craft of relationship banking , powered by the best of modern technology . With Temenos ’ commitment to providing core banking as-a-service , we can continue to focus on empowering our customers , the businesses that are the backbone of the Australian economy .”
ALEX TWIGG , CO-FOUNDER AND CIO , JUDO BANK
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