In today’s dynamic environment, the banking industry is in a state of flux with various technologies, demographic and regulatory factors impacting the value chain, and legacy cores being wrapped with new layers. A core banking solution eliminating the complexity of outdated technology platforms and inefficient procedures with a sustainable model utilizing simplified and industrialized core banking operations is what the CEOs and CIOs need today. In this scenario, existing core banking systems in financial institutions are acutely overdue for a major upgrade to remain competitive in the digital age. However, financial incumbents encounter challenges like risk, scalability, customer expectations, high expenditure and opportunity cost during the core conversion of mission-critical legacy systems. “Core banking replacement remains absolutely fundamental to a successful digitization strategy,” begins David Arnott, CEO, Temenos [SWX:TEMN]. “Without a single data model, real-time transactional data, and a complete view of customers, banks won't have the right foundations to deliver the rich and personalized experience that consumers want.”
Following their vision—“Everything starts with core”— Temenos’ core banking platform is a feature-rich upgradable application, offering real-time embedded analytics, integration, scalability, and sophisticated product builder to address the impediments in replacing ageing traditional core systems. As rapid adoption of technology is disrupting the banking frontiers, Temenos Core Banking solution’s open architecture delivers cutting-edge technology and meets the evolving customer needs in the banking industry.
In a nutshell, Temenos Core Banking solution assists financial institutions in delivering real-time and complete information to their customers and offers quick time to market for new products. The system’s capabilities, products and services are also personalized and tailored to meet the industry-specific needs of clients. The highly scalable Temenos solution is available at a TCO where clients spend 44.3 percent of their IT budgets in comparison to the 78.8 percent spent by their peers on maintenance.
Core banking replacement remains absolutely fundamental to a successful digitization strategy
Temenos’ platform assists banks preserve their business functionality by allowing their core banking system to run on either an application server or a multi-tenant set-up. Clients can also experience an agile, real-time, and multi-channel banking environment with Temenos’ Integration Framework, enabling asynchronous integration between their business systems. Further, the firm’s unified data platform manages and analyzes massive data volumes of banking companies to extract value for strengthening customer-centricity and supporting business decisions.
The company disburses more than 20 percent of its revenue annually on R&D to keep abreast of the latest trends and changing customer requirements to develop apt software solutions. Temenos Core Banking solution has been a preferred choice for many banks to optimize their core banking systems. The company partnered with Al Khaliji, a fast-growing next-generation bank in Qatar, where the Temenos platform assisted the client to replace its fragmented traditional core environment with a single fully-integrated system, covering all aspects of their business. In a time span of 15 months, the core system was replaced bringing down the cost of maintenance substantially.
The risks and the cost of failure associated with replacing a core banking system have restrained banks and financial institutions to replace their legacy systems. However, right from the outset, Temenos has been dedicated to take the leap beyond the industry standards and has challenged the status quo with its innovative solutions.