The article explores the need for a robust and sophisticated core banking system, which has led a business like Temenos to become the core banking software for over 3000 financial institutions across the globe.
The Economist Intelligence Unit (EIU) on behalf of Temenos surveyed 305 global banking executives in the midst of the Covid-19 crisis. Half of the interviewed were at C-Suite level.
For the first time in the seven years of running the survey, commercial and private banks were included alongside retail banks. In this truly global report Europe, North America, Asia-Pacific, Africa and the Middle East, and Latin America were all represented.
Summary of the key findings:
Ingress of New Technologies and their impact
- 66% believe new technologies like AI, Cloud, and DevOps will drive global banking in the next five years.
- 45% are set on creating digital ecosystems to enhance experience and revenue streams
Top three strategic priorities by 2025
- Improve the customer experience and engagement (32%)
- Migrating client usage to digital from physical channels (31%)
- Mastering digital marketing (31%)
Top three cited competitors
- Payment players like PayPal and AliPay (50%),
- Technology and e-commerce disruptors (34%)
- Partnership between tech giants and Fintechs (24%)
Views of on Platformization (platform based services)
- 83% bankers think Platformization will steer the market.
- 84% believe that Fintechs will continue to have a material cost advantage over traditional banks.
Unlocking value in the future
- 84% agree that DevOps methodologies and modern cloud-based platforms will drive transformation in core banking services
- 81% executives believe a multi cloud strategy will become a regulatory pre-requisite.
- 59% agree that traditional branch-based banking model will be dead.
The survey results point to the need for a robust core banking platform that delivers integrated competencies aligned to new-age practices
Since 2011, the Temenos core banking system is deployable on cloud platforms using cloud-native architectural approaches and tools. This enables customers to adopt flexible scale out approaches, thereby reducing technology and operational costs by aligning them to changing business volumes. This approach helps clients take advantage of the security and resilience capabilities offered by the leading cloud service providers like Amazon AWS, Google Cloud and Microsoft Azure.
Apart from being cloud native, let’s examine other “integrated platform” features that Temenos Transact offers.
Temenos’s core banking solution runs natively on the cloud. And, it can run on three main public clouds natively. This offers banks the flexibility to choose the cloud provider, most aligned to their needs. Since the solution can be deployed on a distributed relational database, subsequent migration from one cloud service provider to another is made easier.
Today, Banks need to integrate with different Systems and Providers to create better products and provide seamless user experiences for their Customers. Along with Open Banking, Berlin Group, STET and other Standards, APIs play a major role in bringing about the technological disruption in Banking. In a bid to offer extensive capabilities for integrations, Temenos brings 700+ documented and supported Open APIs, enabling the entire breadth of its Solution features to be leveraged in tandem with other systems and providers.
AI is fast becoming a vital ingredient in enabling Banks to create personalised and relevant customer propositions and to service their clients as efficiently as possible. Temenos helps Banks achieve these goals by embedding its patented eXplainable AI (XAI) platform across the entire product portfolio, enabling Banks to rapidly roll out self-learning technologies.
Delivering Integration platform through Microservices
The use of cloud-native technology enables Temenos applications as a collection of Microservices, each of which can be delivered as a container for independent implementation and operation.
This has four main impacts:
- Quicker time to value for large transformation programs: When banks are keen to undertake large transformation projects to take advantage of new market opportunities, ways of doing business and technology, Temenos platform enables the various elements of the software to be deployed independently.
- Module Level Upgrades: By making the various parts of the system operate in a standalone manner, upgrades can happen at a module-level granularity. This means that banks can easily make smaller, more frequent upgrades, hence enabling them to make early use of the new system capabilities.
- Different Deployment Options: Rather than adopting an “all or nothing” approach, banks can choose to keep various elements of in-house or third-party solutions where they add a competitive advantage. This can either be for the short-term during a change program, or long-term, if the point solution provides something uniquely valuable.
- Cloud-native Scale Out Granularity Enhancement: One of the advantages of using cloud-native software for transaction processing systems is the ability to scale out as and when business volumes change. By adopting a microservice-based approach, this scaling out process can be applied to a smaller area of specific functionality, thus offering further cost and efficiency gains.
In summary, Temenos Transact delivers on an integrated platform led core banking and now with the roll out of the microservice architecture, it is even more robust. As a certified Temenos partner, Maveric Systems re-energizes your connected core by extracting maximum value through Temenos Transact. With the right combination of certified Temenos specialists, contextual solutions, matured frameworks and accelerators, we deliver core transformation, upgrades and on-the-go support.
Temenos is the world’s no #1 Banking software used by 3000 clients across 150 countries. 500 million end users rely on it; $19 Trillion USD in assets are managed by Temenos Software; and 41 of the top 50 banks run on Temenos software.