Prima Varadan shows how Temenos’ open and configurable banking platform is accelerating the product’s time to market for banks and non-banks.
The speed and cost of innovation and the emergence of new business models such as Banking as a Service (BaaS) are changing the DNA of how banks operate and collaborate.
According to Prema Varadan, chief product and technology officer at Temenos, banks running on complex legacy IT systems are not equipped for this change.
“Although banks have been investing heavily in digital and cloud technologies in recent years, they have been reluctant to embark on modernizing the platform.”
Varadan believes that the tipping point has been reached. “The good news is that transfers can now be managed easily and at acceptable levels of risk due to new cloud banking and SaaS platforms, built on API first, microservices and DevOps principles that provide automated migration and deployment.”
Which is why Varadhan is so excited about Temenos cloud banking. “Temenos has advanced its technology architecture and banking capabilities to offer the most open and secure cloud-native platform for creating, expanding or deploying banking capabilities,” she says.
Configurable banking services and capabilities
In Temenos Banking Cloud, preconfigured banking services from the self-service portal can be consumed, configured, expanded or easily deployed anywhere. “It is a game changer for banks that can no longer wait to update their technology infrastructure.”
Varadan explains: “The Temenos Composite Banking Services consist of pre-configured and pre-assembled Temenos banking capabilities as well as optional integrated offshore solutions from Temenos Exchange.
“This helps banks and non-banks to deliver differentiated banking experiences to the market faster and meet growing customer expectations while reducing the cost of development.”
The Varadan team is committed to offering a wide range of Temenos banking services to meet the needs of banks of all sizes across the retail, corporate, SME and wealth sectors.
“We recently announced the first AI-driven Banking (Buy Now Pay Later) (BNPL) and new Temenos Banking services tailored to meet the unique requirements of competing banks,” Varadan says.
Other Temenos banking services include retail lending, payments, fraud mitigation, KYC customer risk assessment, and soon digital mortgages and demand deposit accounts.
Larger banks can choose individual Temenos Banking capabilities such as lending, deposits, accounts or virtual accounts and quickly integrate them independently into their systems landscape.
Flexibility, agility and extensibility
Temenos aims to create a vibrant partner ecosystem for collaboration and innovation on its platform through Temenos Exchange, its enhanced marketplace for FinTech solution providers.
In addition, the new Temenos expansion framework allows banks or BaaS providers such as Vodeno, Green Dot and Mbanq to explore additional banking services and capabilities, and configure or even expand their functionality.
“Temenos partners can take advantage of this feature to write country-specific extensions to Temenos Banking services without compromising their core functionality,” Varadan explains.
“To compete effectively, banks need to become more flexible to deliver applications at high speed and accelerate product time to market. Based on DevOps, the Temenos platform enables continuous integration and delivery, rapid testing, removing the need for major upgrades, and always taking advantage of the latest services features” .
The platform also uniquely includes interpretable AI. This means that banks can rapidly deploy new capabilities to better test, report and measure product performance and gain insights to support smarter business decisions as well as highly personalized banking.
“Explanable AI provides transparency into these decisions, and helps banks explain in plain language to customers and regulators how AI-based decisions are made,” Varadan says.
A notable example of Temenos Banking Cloud in practice is the digital bank of Banca Mediolanum Group, flowy A competitive, green Italian bank aimed at younger retail banking customers who desire ethical and innovative digital banking.
Flowe launched in a record time of just five months, signing up 15,000 customers in its first week. In the first six months, Flowe attracted more than 600,000 customers.
Powered by Temenos Banking Cloud, Flowe can now grow sustainably, passing benefits to customers for a cleaner, greener planet and a better society.
Using API capabilities allows Flowe to reduce deployment time and costs and easily connect to third parties, such as Doconomy, which calculates the carbon footprint generated by each customer’s transactions.
Flowe harnesses the Temenos Financial Crime Mitigation program to maintain security while setting up clients and processing transactions. To provide a wide range of electronic money transfer services, Flowe relies on Temenos Payments.
Besides supporting card transactions and direct debit transfers, Flowe uses the platform to facilitate specific payments to educational and administrative authorities in Italy.
Another innovative bank that uses Temenos cloud technology is Faroe Bank. It is estimated that serving customers is 25% of the total costs incurred by a conventional bank. For its journey from fintech to a bank and its use of technology to deliver innovative, low-cost digital banking targeting the 180 million Americans who currently lack a traditional system, Varo has been awarded the Celent Model Bank of the Year 2021.