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Cloud-based Core Banking – A need in the times of unprecedented crisis

Cloud-based Core Banking – A need in the times of unprecedented crisis

Banking has been one of the industries extremely cautious in adopting cloud native technologies. Highly regulated norms, practices and data privacy laws have precluded them from cloud led investments. Stringent as the banking laws are, the stakes are simply unique and too high.

COVID-19 has beset the economy with unprecedented challenges. In these unrivalled times, banks have been supporting their customers purposefully with new modes of digital technology evolution. Many of these innovations are powered with cloud native technologies. Social distancing clauses are perhaps the biggest reason for the industry to look beyond their traditional ways of business operations.

The Game of Cloud

No one needs introduction to cloud native platforms and technologies, and the value they bring to every business enterprise. Last year, Gartner forecasted worldwide public cloud service revenue to reach 354.6 billion by 2022. Amongst the various cloud players, Gartner has predicted Software-as-a-Service (SaaS) segment to lead the game of cloud with the highest share.

Many banking businesses are beginning to draw confidence from Fintech service providers to adopt the cloud roadmap. Functions such as Human Resources, Marketing, Sales etc., are already leveraging cloud-based technology platforms for their daily operations. The needle, now, is slowly but surely moving towards the core banking services such as retail banking, wealth management, payments, treasury and more.

A Pragmatic Case of World’s No 1 banking software company

As digital appetite grows for banks in the current pandemic, many are turning on to SaaS based banking solutions. We can take the practical case of Temenos, which is world’s no 1 banking software. To help banks tide over the current crisis, Temenos has restructured their service strategy to focus more on AI-based SaaS technology propositions. The last quarterly performance saw them recording significant growth in SaaS based banking solutions. In fact, the revenue from SaaS based license selling increased by 104% in actual contract value (ACV).

Temenos Infinity, a digital front-end solution and Temenos Transact (erstwhile known as T24), which is a renowned worldwide core banking solution, are among the various SaaS based product lines launched by Temenos. Both of them guarantee remarkable digital capabilities with cutting-edge features, pre-configured functionalities and also, keeps a close eye on compliance support.

Next Commercial Bank (Next Bank) is one of the early adopter neo-banks in Taiwan, which has selected the cloud native Temeno Transact platform to rapid launch their banking operations. Another Swiss based tier-1 private bank Banco Itaú, is implementing Temenos Wealth to revamp their wealth management operations. Yemen based Al Kuraimi Islamic Bank (KIB) has also selected Temenos Infinity and Transact to replace their legacy IT systems. KIB features among the top 5 leading banks in Yemen. These recent examples reflect the adaptability of cloud-based banking platforms for banks of any size and types.

Future of banking with Temenos Infinity and Transact

The agility offered by cloud based banking solutions, is ‘what-the-doctor-ordered’ for the current pandemic. Cloud native applications promise a great deal of customer experience through simplified processes, lower CAPEX, highly intuitive user interface (UX), advance data analytics and are capable to operate across significant scale(s). They can be deployed anytime anywhere, and put to use much quicker than the traditional on-premium based solutions.

  • Temenos Infinity is a comprehensive digital banking solution, designed for onboarding, servicing and retaining customers of tomorrow through seamless and highly intuitive user journeys. It offers next-generation capabilities with power-packed analytics for driving result-driven actions and decision making. Additionally, bankers can expand their business portfolio by taking advantage of open banking privileges through OpenAPI’s
  • Temenos Transact, formerly known as T24, is the next generation core banking solution. Trusted by more than 3000+ banks, they have been among the favorites for the last 25 years. Transact now comes packaged and wrapped with robust cloud-native, cloud-agonistic, micro-services based technology.

Maveric systems, being a certified Temenos services partner, has made significant strides and considerable investments in getting its Temenos specialists trained in SaaS based Temenos Infinity and Transact solutions. Our brand promise of ‘Connected Core’ enable banks to accelerate their next transformation journey, by building a digital ecosystem designed with reliable solutions and endowed through encyclopedic Temenos proficiency.

Much more secured than we think….

Arguably, and in all fairness, security dialogues are exchanged and discussed deeply when it comes to cloud migrations. Most of the SaaS based banking propositions are designed carefully keeping in mind all current and future led security scenarios. Banks can deploy proper gated controls such as digital fraud detection systems, build encryption walls and provide a safer transaction passage through Transport Layer Security (TLS). More so, bankers gain further confidence through the additional security layer of AI based algorithms packed in SaaS propositions.

The Road Ahead

Most Banking CIO’s are on the edge of cloud technology disruption that has erupted in the current crisis. They would soon need to wear the ‘cloud-hat’ to bring banking innovation at speed. There are enough proof points reflecting positive vibes for banking CIO’s to invest in cloud native core banking. The future of core banking will certainly see more cloud deals, thereby setting the next course for digital banking ecosystem.

This was originally published on MEAFINANCE website and is being reproduced here.

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