Temenos (SIX: TEMN), the banking software company, announced that it has exceeded 60 challenger bank clients confirming its status as the technology provider of choice for this growing segment.
With the rich functionality of Temenos’ integrated front-to-back SaaS offering, challenger banks can launch rapidly, scale fast, provide differentiated services to customers and grow profitably.
A raft of digital banks - such as Alba, Alpian, Banco del Sol, Flowe, FlowBank, Lunar, Next Commercial Bank, Pepper, Varo Bank and WeLab Bank - have selected Temenos’ cloud-native, cloud-agnostic technology, joining the 3000+ Temenos customers around the globe including 41 out of the top 50 banks that run Temenos. News of Temenos exceeding the 60-bank milestone comes as the company launches new functionality designed specifically to cater to this fast-growing segment.
Temenos Infinity helps challengers deliver frictionless onboarding experiences for SMEs, while offering robust protection from fraud with financial crime mitigation, risk and compliance software. These enhancements directly address the need - which increased during the pandemic - for banks to offer more products and services to SMEs digitally through multiple channels. Risk and compliance is a significant area of focus for banks because the vetting process and credit decision-making takes place digitally. Temenos also offers Explainable AI models to allow banks to accelerate digital onboarding, conduct eligibility checks and process loans for SMEs to help them access funding faster. Temenos Infinity cuts the time to onboard SMEs by up to 75%, strengthening their relationship with the bank.
The multi-currency account is a new feature within Temenos Transact, the market-leading core banking product. Temenos multi-currency account is designed to be used like a current account allowing day-to-day transactions in many foreign currencies. This highly competitive product is aimed at customers who want to save in a foreign currency, receive money in multiple currencies, use their card in different countries and manage properties abroad. This functionality enables challengers to offer differentiated services and has already been adopted by digital banks such as Alpian and Flowbank.
Temenos’ Sandbox gives banks self-service access to experience the modern technology and functionality. Sandbox empowers challenger banks to adopt a growth-oriented, early-stage strategy to launch products incrementally and validate new propositions with their customers. With Sandbox, challengers can innovate using Temenos’ SaaS-first, cloud-agnostic technology.
Challenger banks benefit from Temenos’ pre-configured platform with pre-packaged products and services. Temenos Country Model Banks provides localized banking functionality from account opening to lending and mortgages, including local and regulatory compliance requirements, allowing challengers to deploy the technology faster without customization. This reduces development time and accelerates time to market. Temenos also enables banks to deploy an elastically scalable full stack solution across multiple cloud providers.
Temenos SaaS technology enables challengers to elastically scale based on business demand and service new customers at any growth rate. Challenger banks can create hyper-efficient cost models and in turn pass on the benefits to their customers. Varo Bank, for example, estimates that it services customers at 25% of the total costs incurred by a traditional bank.
Max Chuard, Chief Executive Officer, Temenos, said: “We see great traction globally where challenger banks - free from the constraints of legacy technology - recognize the potential for Temenos’ advanced technology. I am proud that with our modern technology we have been helping challengers especially ruing the pandemic to bring new products to market faster, be more agile and grow profitably. Temenos has a relentless focus on innovation and is investing over USD 1bn in R&D in the next few years. With Temenos’ cloud-native technology, challengers benefit from lower total cost of ownership and agility, rapid innovation and can offer outstanding banking experiences.”