Temenos: Digital Banking to the Core

David Arnott, CEO, TemenosDavid Arnott, CEO
In the words of actor and storyteller, Rhys Darby, “We live in a digital world where all is available at the touch of a screen. Money has been simplified, changed subtly over time from tangible bills to numbers in cyberspace.”

Such is the impact of digitalization on the finance sector, especially banks. Riding the digital tide, retail banking has transformed by leaps and bounds. Owing to the rapidly changing customer expectations, the emergence of game-changing technologies and new competitors in the market, banks are under constant pressure to maintain a competitive edge. As such, to drive business, banks find it necessary to revamp their business models and transform their underlying technologies to thwart disruption. What’s most important is the role of the customer amidst all of these; customers have become the centerpiece in the metamorphosing retail banking landscape, propelling further growth and evolution.

Against this backdrop, the situation remains particularly challenging for retail banks because of plummeting profit margins, growing competition, and exponentially rising operational costs along with the complexity of the regulatory environment. However, retail banking has been witnessing quite a number of tectonic shifts since the past few decades with the proliferation of credit cards, a surge in electronic banking, and a slump in paper checks. These major transformations have effected a fundamental change in the way millennials prefer to spend and save money. The digital banking era has brought forth innumerable opportunities for retail banks to progress on a profitable growth trajectory. To this end, Geneva-based Temenos, a global leader in banking application software, has come up with an integrated software solution—RetailSuite—to help retail banks navigate the intricacies of the banking ecosystem. The solution amalgamates an agile and modern core with robust analytics on a single platform for distribution across all channels.

According to Temenos’ CEO, David Arnott, “Banks must take advantage of modern technology, and, crucially, of the biggest assets that they have: the customers, the data, and the platforms." Temenos’ retail banking solution aligns perfectly with this strategy, endowing customers with the ease and convenience of choosing the way they want to manage and bank their finances. Retail banks, in turn, can leverage the solution to broaden their reach to customers utilizing digital banking on any device, today and also in the future. Additionally, using the preeminent solution, banks can harness the reams of customer data to discern what their customers need the most and devise products and services accordingly.

An Overview of RetailSuite

Delivered on a single platform, RetailSuite is a comprehensive, fully integrated, front to back retail banking solution that efficiently addresses the pain points and the regulatory challenges that retail banks confront. Being platform agnostic, RetailSuite offers flexible deployment models and accelerates speed to market, along with empowering retail banks with regionalized solutions that can be implemented both on and off site. RetailSuite’s benefits encompass everything from delivering customer-centric banking, propelling innovation, and helping stay ahead of the game in an increasingly dynamic retail banking landscape.

RetailSuite comprises core banking, omnichannel solutions, front office, analytics and reporting, risk and compliance, financial crime mitigation, and payment solutions. The Temenos core-banking platform, one of the best selling solutions on the market for 15 years, melds ingenious technology with rich functionality in an intuitive and upgradable solution. With real-time embedded analytics and advanced product builder, the platform enables seamless integration while maintaining unprecedented scalability. The real-time analytics equip retail banks with the information to deliver customers the right products at the right time. Revving up time-to-market for new products, the product builder facilitates personalization of products and services. The solution has the ability to run on any given software stack while being linearly scalable. It can be deployed either on-premise or shared infrastructure, allowing customers to migrate to a lower cost stack.

Temenos’ state-of-the-art omnichannel solutions empower retail banks to offer financial services and products for any business, across all assisted and self-service channels, catering to both customers and bank personnel. The offerings can be further delivered in any preferred language and optimized for any device. In an effort to help banks focus on customer centricity, Temenos has introduced a dynamic, single experience platform through which they can boost customer engagement.

A chief enabler of digital engagement across a customer’s lifecycle, Front Office benefits both customers and staff alike with its multi-channel capabilities.

Delivered on a single platform, RetailSuite is a comprehensive, fully integrated, front to back retail banking solution that efficiently addresses the pain points of banking technology and the regulatory challenges associated with it

Based on advanced technology that renders real-time interfaces, high performance, and exceptional productivity, it posses the flexibility to support the diverse needs of any bank—be it a small greenfield operation to the largest multinational. To provide a consistent customer service, Front Office can seamlessly integrate with self-service channels and back office data and is compatible with a bank’s existing systems. This allows retail banks to offer an array of next-generation, multi-channel services to customers in an efficient and profitable manner. In addition, Front Office enhances revenue growth, share-of-wallet, and customer loyalty by assisting banks in the refining the quality and strengthening the effectiveness of their CRM, revenue-generating processes, multi-channel customer experience, pricing, and more.

Temenos’ Analytics solution helps banks harness the power of data and glean meaningful insights from it to drive better decision making and boost customer interaction. With Temenos Analytics, retail banks can improve their business by providing access to accurate data which accelerates the decision-making process while driving better business outcomes. Driven by an objective to ensure that all its customers receive optimum security, Temenos has brought the Risk and Compliance product family to the table as a part of RetailSuite. It includes CRS, compliance advisory services, customer data protection/ general data protection regulation (GDPR), enterprise risk management, social media compliance, and more.

The Financial Crime product family is designed to facilitate banks with an array of completely automated financial crime mitigation solutions, ensuring that customers are never impacted. As an advanced range of highly effective and efficient analytical modules, the product family promptly identifies a financial crime. The main modules of the product family include profile, screen, KnowCustomer Plus (KC+), and suspicious activity prevention.

Defined as “a vision for the payment architecture” by analysts, Temenos’ payment hub is devised to process payments—both domestic and international—through a single solution in any given region. Moreover, the solution offers a 360-degree view of transactions with absolute transparency, supports payment prioritization, provides complete technical and operational control.

The Banking Software Specialist

With an extensive experience of more than 25 years in creating software specifically for the banking and finance sector, Temenos has emerged as the true banking software specialist with a rich domain knowledge. Temenos places its clients at the heart of everything it does, laser-focused on the client’s business objectives.

As a market leader, Temenos holds the distinction of bagging multiple recognitions and prestigious awards: the leadership rank for its completeness of vision and ability to execute in Gartner’s MQ for Global Retail Core Banking, a “leader” in digital banking platforms position in both Digital Engagement Platforms and Global Digital Banking Platforms. Further, the company secured the first position in IBS Intelligence for Temenos Channels, Core Banking, and Compliance and Payments. In the recent Systems in the City Awards, Temenos was recognized as the banking software with the Best Retail Banking System.

Fostering a Culture of Growth

Temenos endorses a culture of meritocracy and openness to attract the best people and provide them the liberty to make great things happen. Such an approach has been the guiding principle of the company and is at the core of the company’s pioneering record of innovation. That is not all. To facilitate better customer outcomes and accelerate growth, Temenos has consistently laid emphasis on collaboration. And, Temenos’ large ecosystem of partners stands testimony to the fact. This, in turn, enables clients with access to a huge repertoire of system integration options and choice of technology platforms that best suit their needs. With the objective to take their technical prowess to the next level, Temenos invests heavily in R&D, perpetually innovating based on customer requirements to build a future-proof retail banking system that can defy obsolescence. The company spends a whopping 20 percent of their sales on R&D; consequently, with every new release, their software just gets more technologically advanced with higher performance levels. Over the course of last seven years, Temenos’ clients have reaped maximum benefits by leveraging the ingenious banking solution, with an average of 31 percent higher return on assets, 36 percent higher return on equity, and an 8.6 percent point lower cost to income when compared to financial institutions functioning on legacy software. Temenos is looking forward to building stronger collaboration in the future to facilitate seamless and highly efficient retail banking.