Temenos (SIX: TEMN), the market leading provider of integrated core banking systems, today announced that Agricultural Bank of China (ABC), China's third largest bank serving 350 million customers through 24,000 branch outlets has selected Temenos CoreBanking (TCB) as a Reference Architecture on which to create its Next Generation Core Banking System.
By partnering with Temenos in this way, ABC will accelerate the delivery of its Core Banking Transformation program, driven by the needs of its rapidly evolving customer base. TCB is a functionally rich, modern Retail Core Banking System, underpinned by an industry standard Enterprise Banking Data Model. It is implemented by the world's largest banks to transform highly complex, fragmented legacy core systems into an integrated, simplified and cost-effective solution.
"Customer expectations in this market are changing fast as they become exposed to ever greater choice in products and services from both domestic providers and foreign competitors. We believe that the flexibility and re-usability delivered through the data and application architecture of our future core banking system will be critical in successfully delivering new products, efficient processes and improved insight over the next 20 years. We have to evolve the business to meet the emerging demands of our customers and as a bank with 400,000 employees, the size and complexity of our business makes implementing and managing change challenging. We also acknowledge the risk involved in core systems replacement; it was a hard decision to make but our customers are at the heart of our business and we need the technological excellence to provide the services they need; we are confident that our next generation platform will enable us to do this and more", commented Mr Ye, Chief Technology Officer, ABC.
Andreas Andreades, CEO, Temenos comments: "ABC, like all Tier-1 banks in the world, has the most to gain from replacing its complex fragmented architecture with an integrated core engine designed around unified data. The prospect of core replacement is considered so daunting that the majority of banks postpone the decision even though their existing core system is unsustainable. ABC has chosen an intelligent, pragmatic approach to replacement whereby they take an incremental low-risk phased approach to transition and transformation, seeing this as a strategic journey rather than a project. This enables ABC to align its investment with each phased deliverable to ensure benefits are continuously delivered into the business throughout the transition. And of course they can move at a pace with which the bank can effectively absorb change"
The first phase of the project is well underway to establish the TCB operational Reference Architecture and ensure that the bank's IT Team understand all facets of the data, functional and technical architecture that will form the basis of the bank's future IT blueprint.