Mibanco picks Temenos SaaS to modernise core banking

Mibanco, Peru's largest microfinance bank, has selected Temenos' software-as-a-service platform to replace and modernise its core banking systems as part of a wider digital transformation programme.

The bank plans to adopt Temenos Core and Temenos Data Hub under a SaaS model. The rollout will sit at the centre of Mibanco's operations and product development for its retail and small business customers.

Mibanco is part of the Credicorp group, which also owns Peru's largest bank, BCP. The microfinance lender has more than 1.9 million active customers and assets of PEN 18.2 billion (about USD $5.4 billion), according to figures provided by the organisation.

The move underscores a broader shift in Latin America, where banks are replacing legacy systems with cloud-based platforms. Many are investing in technology to enable faster product launches and more consistent digital experiences across channels, as competition intensifies from established banks and digital-first entrants.

Core refresh

Core banking systems process deposits, loans, customer records and transactions. Banks typically treat core replacements as multi-year programmes because they affect most operations and require integration with channels, payments and data platforms.

Mibanco focuses on micro, small, and medium-sized enterprises, with a strong presence in underserved and informal segments of the economy. It offers credit, savings and insurance products, distributed through digital channels, correspondent agents and a branch network.

Temenos' SaaS platform will run on Microsoft Azure, which Temenos says provides a single view across cloud investments and supports deployment through the Microsoft Marketplace.

Temenos Core is the vendor's system for deposit and lending operations. Temenos Data Hub is a data layer that consolidates customer and transactional data from different sources, typically used for reporting, analytics and customer service workflows.

SME focus

Mibanco describes the programme as part of its effort to expand access to finance for small businesses in Peru. It operates in a market where 99% of businesses are classified as micro and small, and where millions of people and businesses remain outside the formal financial system.

Under a SaaS model, the vendor and cloud provider operate the underlying platform. Banks often choose this approach to achieve more predictable upgrade cycles and fewer internal maintenance tasks, although integration and change management remain their responsibility.

Mibanco expects the new platform to shorten product development cycles and transform digital transactions and service processes for customers across mobile, online, and branch channels.

Alberto del Solar, Deputy CEO of Mibanco, said: "With its industry-leading technology and proven SaaS expertise, we're pleased to choose Temenos for this major transformation project. With Temenos SaaS running on Microsoft Azure, we'll be able to efficiently scale our responsible and profitable microfinance model, offering more agile digital products and services for small business owners and supporting sustainable economic growth in Peru."

Regional push

Temenos has been expanding its cloud-delivered offering as banks reassess how they source and run core systems. The company sells its technology for on-premises deployment, public cloud, or managed SaaS.

In Latin America, core modernisation programmes have gained momentum as digital usage rises and branch-based models shift. Microfinance providers-often managing high volumes of smaller-balance accounts and loans- have also been investing in technology that supports automation and faster onboarding, alongside strong controls and reporting.

Rodrigo Silva, President, Americas at Temenos, said: "We're delighted that Mibanco, part of Peru's largest financial group, has selected Temenos SaaS for its core banking modernisation. This reflects the strength and agility of our market-leading core banking suite, as well as our regionalised functionality and experience in the local market. We look forward to working with Mibanco as it continues to drive increased financial inclusion in Latin America."