Banking software provider Temenos added three banks to its platform in the second quarter as financial institutions migrated to the cloud and digitized their platforms. 

Temenos’ cloud offering will be central to the company’s “growth plans over the coming years,” Andreas Andreades, chief executive of the Geneva-based company, said during its Q2 earnings report today. 

“Certain cloud features are key drivers of demand across all client tiers, and it is notable that we are seeing some larger banks opting for true SaaS, not just cloud infrastructure,” Andreades said during the earnings call. 

The following FIs chose Temenos for cloud migration in Q2: 

• $156 billion Regions Bank, of Birmingham, Alabama, chose Temenos for core banking modernization in the cloud; 
• $142 billion Alex Bank, of Brisbane, Australia, went live with term deposits on Temenos banking cloud; and 
• Segura Bank, based in San Juan, Puerto Rico, selected Temenos to power new digital banking in the cloud for Latin Americans. 

Meanwhile, United Bank Limited (UBL), a $725 million bank headquartered in Karachi, Pakistan, chose Temenos to power digital corporate lending, per Temenos’ release. The bank, which has 11 million customers, has added a corporate lending option as part of a comprehensive digital transformation of the bank’s retail, SME, and corporate banking services. 

Cost-cutting, driving value 

Banks and FIs are committed to moving their operations to the cloud, and 2023 is like a “pause-and-pivot year” to reset expectations and clarify outcomes for such moves, Gartner analyst Jason Malo told Bank Automation News. 

“It’s not just a cost-cutting thing, they’re looking to drive value,” Malo said. “Moving to the cloud helps them in modernizing their platform, add features, drive customer engagement, develop resiliency, and increase security measures.” 

Financial institutions usually choose providers who can reduce their time to market while providing a seamless and secure transition to the cloud, Malo said. 

FIs are choosing Temenos to make their platforms more agile and scalable as the market moves “more aggressively towards cloud and SaaS,” Andreades said. 

Temenos has been racking up clients who want to use the company’s microservices and API-powered technology as cloud adoption increases.   

The company expanded its operations in the Middle East can largely be attributed to FIs integrating cloud architecture, Robert Wint, senior product director at Temenos, told BAN last year.