Temenos Banking Cloud lets banks choose services without core upgrade
Solution incorporates access to fintech marketplace
Temenos customers will now be able to select banking services a la carte without core overhauls and access third-party fintech solutions via a marketplace after the launch this week of Temenos Banking Cloud
The new offering will give banks more flexibility in choosing which products they want to offer, said Ross Mallace, Temenos’ business line director for SaaS, who announced the news Wednesday at the company’s virtual forum, outlining three components of the Temenos Banking Cloud, all of which can be accessed through a single online portal:
- Business services, which allows members to pick and choose which products they deploy. John Medina, chief operating officer of PBCom, told the forum audience that his bank ran on the core cloud SaaS platform T24 — now Temenos Transact — but when it wanted to deploy later versions of services for a digital market platform, the $2.2 billion bank was able to “leapfrog” to those services without updating their core.
- A marketplace that will offer access to pre-integrated third-party fintech solutions such as Plaid, Taurus, Tink and Wise.
- A cloud-based sandbox where developers can develop new products using banking services. They can also invite fintechs and developers to the sandbox environment to collaborate.
The platform also uses embedded AI capabilities to offer insights around operational efficiencies and business opportunities that could be derived from the platform, Mallace told Bank Automation News this week. A common use case for using the embedded AI would be to build AI-based price scoring, Mallace said.
The trend for some time has been to move away from monolithic, tightly coupled platforms toward more finite services, said Stephen Greer, a senior analyst with the financial technology research and advisory firm Celent. A services and microservices approach gives banks more flexibility in that they don’t have to buy a new core to add capabilities, Greer told BAN. It also makes systems more resilient, he added.
“Because of cloud and containerization, microservices enablement, you can really have everything broken up as a different functional service,” Greer said. “Then each one of those are self-contained and they speak to each other, … so that it creates a good amount of resiliency.”
Although Greer was still researching Temenos’ new cloud offering, he said other core providers such as Finastra and FIS are doing similar work in offering a broader ecosystem that allows banks to connect with fintech partners via APIs.
