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Temenos reaches an important milestone with the introduction of the microservices architecture Temenos Transact, which enables large banks to scale their core systems strategically in a secure and progressive manner


GENEVA, Switzerland– (BUSINESS WIRE) -

  • Bigger banks can now renew the components of their core banking applications step by step without jeopardizing their end goal of a complete system transformation to a cloud-agnostic, cloud-native architecture. The Temenos Transact microservices architecture enables continuous change with noticeable business advantages in every phase.
  • The Temenos Transact microservices - such as accounts and deposits as well as private customer loans - can be quickly and securely integrated into any established infrastructure via APIs in any order, so that the banks can tap into the possibilities of digital transformation.
  • Temenos offers banks a real choice of transformationsStrategies, starting with continuous renewal, in which larger banks can individually exchange components of their architecture, to "build and renew", where they can build a new digital stack and at the same time continuously migrate products and customer bases from their legacy systems.
  • The microservices include Temenos Transact company-wide functions like pricing in older infrastructures as a first step towards creating value for the bank. For a complete digital transformation of the banking business, Transact is linked to the microservices-based Temenos Infinity.
  • Temenos Transact is based on cloud-native, cloud-agnostic technology that enables banks to significantly reduce their total operating costs through the elastic scalability of the cloud, decentralized database technology and multi-cloud resilience, supported by the advantages of manufacturer and platform independence.

The banking software provider Temenos (SIX: TEMN) has reached an important milestone in the provision of its microservices-based architecture for the cloud-native, cloud-agnostic Temenos Transact. This enables tier 1 banks a scalable, strategic transformation of their core banking systems.

Old infrastructures are a burden for large banks. The costs and the risk associated with replacing these complex systems that have been adapted over decades are high. However, the outdated systems result in high operating costs, a high risk of failure and a lack of agility, which prevent banks from bringing innovative, personalized products to market. Therefore, the digital transformation is of particularly high urgency today.

Temenos is now accelerating the rollout of its microservices to help larger banks continue to transform their core banking applications. In contrast to conventional, inseparable core banking systems, Temenos Transact has components that can be used independently of one another continuous renewal based on the business needs of the bank. By modernizing critical elements of their core banking systems with proven cloud-native, cloud-agnostic software component by component, which is associated with noticeable advantages, banks now have an alternative for the first time. These microservices can be deployed independently across the enterprise and banks can maintain existing systems where appropriate. In combination with the microservices-based Temenos Infinity, banks have an agile, service-based architecture for their core banking business and digital customer journeys. This is an alternative to the already successful implementation approach of building and migrating, in which banks can build a new digital stack and at the same time continuously migrate products and customer bases from their legacy systems.

Banks can take a long-term and strategic approach while continuously innovating product lines such as deposits and accounts as well as core systems such as funding approval and inventory management based on their business and operational priorities. This strategy allows banks to be flexible about renewing as priorities change over time.

The advantage of Temenos' microservices strategy for the existing customers of Temenos Transact is that they can upgrade at a granular level so they can react faster to market opportunities while lowering the total cost of ownership of their existing core banking platform. With Temenos Continuous Deployment, which extends the Temenos DevOps processes to the banking environment, Temenos customers can implement the software much faster and introduce competitive innovations to the market in the shortest possible time.

Temenos Transact is recommended as a SaaS offer for smaller banks in order to accelerate implementation and simplify IT processes.

Following on from the extensive range of stand-alone services such as payments, the fight against financial crime, company-wide data management and analytics, Temenos now offers new stand-alone microservices for banks:

  • Accounts and deposits: This service manages all current and deposit account activities in real time. With its diverse functions, it supports all currencies and offers a wide variety of interest calculation methods and configurable business rules and events. Fully automated, the service is seamlessly integrated with sales services and other core systems such as payments, pricing and accounting via APIs. As a microservice, it uses the elastic scalability of the cloud to manage millions of accounts at an extremely low total cost of ownership.
  • Retail lending business: This service manages a wide range of loan products, from simple unsecured consumer loans in all currencies to complex facilities such as multiple loans and the associated collateral. Designed for real-time processing and highly configurable, this service is so comprehensive and flexible that it can replace a number of legacy systems in the bank. The system can be integrated into the rest of the IT ecosystem in the cloud or on-site via APIs.
  • Company-wide products: This independent product catalog enables banks to develop and market products in a uniform system, so that costs are reduced and the profitability of the products is increased. With the service, financial institutions can centralize all product definitions in a common repository, so that they have a better overview and more control over several business areas, which often work in isolation from one another. He helps banks bring new products and commercial offerings to market quickly.
  • Company-wide pricing: A central pricing engine to support higher personalization of products and services based on AI and improve the time to market of all product types such as bundled products, relationship-based pricing and third-party products. Banks are in a better position to control the fees they often charge within unrelated applications. This increases the profitability of the banks. With relationship-based pricing, you can define granular rules based on the characteristics of the customer and the context of a transaction, providing each customer with a personalized banking experience.

The Temenos Transact microservices are feature-rich and can be implemented quickly without creating additional functions. Temenos has created reusable country model banks containing regulatory compliance solutions and best business practices for more than 150 countries. This helps the banks to implement them quickly and forms the basis for future innovations.

Max Chuard, chief executive officer, Temenos said: “So far, larger banks have shied away from digital transformation projects. As the number one banking software provider, we are at the forefront of transforming the industry. We provide the Temenos Transact microservice architecture that will revolutionize banking. With this microservices-based cloud architecture, large banks can finally realize their potential by transforming their core banking applications quickly and in a scalable manner. Larger banks can renew their core banking applications without jeopardizing their end goal of a complete digital transformation to a cloud-agnostic, cloud-native architecture with a step-by-step replacement of the components. This is an alternative to the already successful approach of building and migrating, in which banks can build a new digital stack and at the same time continuously migrate products and customer bases from their legacy systems.

We have already successfully supported banks in their digital transformation. Our high-performing customers who use Temenos software have achieved industry-leading cost-income ratios of 25.2% and return on equity of 25.0%, which is twice the industry average. Only Temenos has the advanced technology and extensive banking expertise for such a performance. "

The Temenos Transact microservices use cloud-native, cloud-agnostic technology to improve the Efficiency by banks, as banks can scale quickly and flexibly and at the same time benefit from multi-cloud resilience. With Temenos banks can freely choose whether they want to implement the software on site, in any public cloud or as Temenos SaaS.

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About Temenos

Geneva-based Temenos AG (SIX: TEMN) is the world's leading provider of banking software and acts as a partner to banks and other financial institutions in transforming their business and strengthening their position in a changing market environment. More than 3,000 banks from around the world, including 41 of the top 50 banks, trust Temenos to process their daily transactions and the interactions of more than 500 million bank customers. Temenos delivers cloud-native, cloud-agnostic software products for the front office and core banking business, payment transactions as well as fund and asset management, so that banks can offer seamless, seamless customer experiences and achieve top operational performance.

With the software from Temenos, the company's high-performing customers can demonstrably achieve industry-leading cost-income ratios of 25.2% and return on equity of 25.0%, i.e. twice the industry average. These customers also invest 53% of their IT budget more in growth and innovation than in maintenance, which is 2.5 times the industry average. This shows that these banks' IT investments add tangible value to their business.

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Jessica Wolfe and Grace Collins
Temenos Global Public Relations

Tel: +1 610 232 2793 & + 44 20 7423 3969

Email: [email protected]

Alistair Kellie and Andrew Adie
Newgate Communications on behalf of Temenos

Tel: +44 20 7680 6550

Email: [email protected]