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The Banking Software Company

ISSUE 21 MAY 2010

The road ahead for retail banking

From regulatory compliance to new rivals: the challenges of a changed landscape

Enhancing our offering

Viveo acquisition gives Temenos AML and payments expertise

The rise of a powerful new approach to reducing costs

Anti-money laundering New front office strategy Secrets of profitable banks BforBank Bank of Shanghai North Shore Credit Union Partnership strategy

ISSUE 21 | MAY 2010



Equipped for the journey

There is a mood of cautious optimism among banks as the first signs of recovery appear in the marketplace. There are complex challenges ahead for the retail banking sector, which is experiencing the aftermath of a significant reduction in consumer trust post-crisis. Retail banks are also dealing with increased regulatory requirements and heightened competition with the arrival of new entrants. See our main feature on page 6 to find out how banks are addressing these issues, and the viewpoint from Deloittes Tim Walker on the outlook for retail banking. The banking sector in China is experiencing extremely high growth, creating unprecedented opportunities for those organisations that can move quickly and decisively. On page 11, you can learn about how Bank of Shanghai is achieving record-breaking results by leveraging the benefits of TEMENOS T24 (T24) to surge ahead in this challenging market. BforBank (France) is a start-up internet bank that is reaping the benefits of the 24x7 system offered by T24 to enable non-stop online services and ease of integration with other systems. Another Temenos success story is North Shore Credit Union in Canada, which is using T24 to boost product innovation and customer service. Despite the pressures of the economic crisis, we are honoured to have retained our titles as the Number 1 Best Selling Core banking systems in the International Banking Systems 2009 Sales League Table and Banking Technologys Readers Choice Award for Best Core Banking Product of the Year. Temenos claimed both of these titles for the third year in a row, which is a testament to the strength of our offering.


As the markets change, Temenos is evolving its business to ease this journey for banks as we move forward. Our acquisition strategy reflects our commitment to equipping banks with the technological excellence they need to remain ahead of the curve during these demanding times. Our successful acquisition of Viveo in France has enabled us to strengthen our product offering further in the important areas of anti-money laundering (AML) and payments. See page 12 for more information on the opportunities arising from this acquisition. This issue comes to you as we host our annual Temenos Community Forum (TCF), taking place this year in Berlin. At this time, we have the opportunity to celebrate the many positive relationships we share within our global business network. The theme of Temenos Community Forum this year is Innovation, service and efficiency the route to profit. We look forward to seeing a healthy profit in all our partners and customers businesses this year. We hope you enjoy this issue.

TEMENOS T24 (referred to as T24), TEMENOS COREBANKING (referred to as TCB), TEMENOS Community Forum TCF (referred to as Temenos Community Forum), TEMENOS Globus (referred to as Globus), TEMENOS jBASE (referred to as jBASE), TEMENOS, are registered trademarks of the TEMENOS GROUP. For further information or your feedback, please e-mail us at

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After a rigorous technical assessment of the leading sanctions screening solutions available, the decision to select Temenos for Barclays global initiative was relatively easy
Paul Fabara, Barclays

Barclays selects TEMENOS AML

Barclays has selected TEMENOS AML (AML) as its preferred global sanctions solution for payments screening. Having been benchmarked against other market leading competitors and proven to be the fastest and most operationally efficient offering, AML will be deployed globally to replace existing platforms and consolidate the payments and transactions screening. The development of TEMENOS AML follows the recent acquisition of AML specialist Viveo (see Viveo feature, page 12). AML includes Linguistics, which will enable the banks Next Generation Programme to achieve superior levels of screening. The application of Linguistics in Barclays is a sophisticated solution to address the increasing challenges of cultural variations and subtleties. This heightened detection capability is coupled with Temenos industry leading intelligent false positive reduction methods, designed to drive down total cost of ownership and increase operational efficiency. Paul Fabara of Barclays commented: After a rigorous technical assessment of the leading sanctions screening solutions available, the decision to select Temenos for Barclays global initiative was relatively easy. He added: The banks approach to global compliance is unequivocal. We want to lead by example and have found the right product to help us protect that position. We are delighted to have been selected by Barclays to support its global Sanctions Screening requirements. In light of Barclays strategic approach to Sanctions Screening, the selection of Temenos as the vendor of choice clearly demonstrates the comprehensive nature of the Temenos solution, said jean-Michel Hilsenkopf, Regional Director, Temenos. As regulatory challenges for banks increase, Temenos market leading experience represents a major step forward in protecting individuals and institutions against Sanctioned Entities and Terrorist Financing. Andreas Andreades, CEO, Temenos added: This is a very exciting time for Temenos as we enter into the AML market through the successful acquisition of Viveo. We have made excellent progress integrating the product into our business model and this new signing demonstrates how we are already seizing opportunities in this growth market. The regulatory landscape and heightened enforcement actions are impacting financial institutions sanctions screening efforts and responses to money laundering, for which technology plays a vital role.
George Koukis of Temenos (left) and Paul Fabara of Barclays

Deloitte agreement provides end-to-end service

Temenos has entered into a relationship agreement with professional services firm Deloitte, who will provide consulting services around implementations of the award-winning TEMENOS T24 (T24) core banking platform. This will combine Deloittes capabilities for complex bank transformation programmes with the proven products, methodologies and tools that Temenos offers, to provide customers with a comprehensive end-to-end service. The agreement covers the UK and Switzerland, with plans to extend it globally. It will benefit clients by bringing local market insight and regulatory understanding combined with a consistent level of service within and across markets. Deloitte and Temenos have worked together successfully in the past and this agreement formalises the relationship and provides the basis for a much closer collaboration in the future. The first activity is already underway a global consulting project advising on a T24 rollout. Over the next three years, Deloitte will invest in the training and certification of a team of consultants on T24 who will work with the established Temenos methodology for the implementation of T24 Model Bank. Deloitte Partner Tim Walker said: We believe that banks adoption of packaged solutions is set to accelerate as it offers a route towards radical improvements to their efficiency and their ability to offer new products and services and enter new markets. Mike Head, Temenos Global Alliances Director, added: The relationship with Deloitte is extremely important for the Temenos community. It will greatly enhance choice for our customers, bringing them world-class business management and project delivery skills. jason Deering, a Deloitte specialist with banking platform implementation experience across a dozen markets, commented: The trend for package-based implementation has moved from local, to regional, to global. Implementations will always benefit from a local presence that offers both insight and delivery capability. This relationship gives clients confidence of a consistent methodology, implemented by Temenos specialists and certified, local Deloitte professionals.


T24 will enable automation of currency and bilateral loan processing to reduce cost by eliminating manual intervention
jrgen Wittenkamp, Danske Bank

Danske Bank cuts costs with new lending platform

Danske Bank, Denmarks largest bank, is to implement TEMENOS T24 (T24) Model Bank for Corporate Banking as its new lending platform. T24 will support Danske Banks loan processing across ten countries in northern Europe to reduce operational costs. T24 will enable automation of currency and bilateral loan processing to reduce cost by eliminating manual intervention. By delivering a comprehensive and real-time picture of all credit exposures, T24 will give us improved business processes and operational efficiency, explained jrgen Wittenkamp, Head of Loan Systems at Danske Bank. Danske Bank selected T24 Model Bank to replace its legacy system and support its corporate lending business on a single, open platform. T24s functional richness and openness will address all functional requirements and enable smooth integration.

record numbers go live in 2009

2009 saw more than 50 Temenos clients go live with new systems, a record high for the company. Leading microfinance institution Opportunity International, a longstanding Temenos customer, has gone live on T24 Biometrics in Chennai, India as part of a project to roll out biometric authentication across multiple locations worldwide. The company is implementing T24 Biometrics for customer authentication, including biometric login and transaction authorisation for T24, as well as single sign-on access for other business applications. We have established over a dozen formal finance institutions (FFI) to broaden our services network, said Frank Livingston, Director of MIS Development at Opportunity International. As weve continued to expand, our technology needs have evolved. The ability for our FFIs to identify customers as effectively and efficiently as possible when transacting business is a critical success factor. CfC Stanbic Bank in Kenya has implemented T24 Model Bank as part of an operational merger. The decision was taken to partner with Temenos and consolidate the two businesses onto the T24 Model Bank platform. AF Bank in Russia implemented T24 in its head office and five regional branches in under nine months. Replacing ten systems with T24 has transformed our infrastructure, giving us the functional breadth to expand our product range, said Aidar Zubairov, Chairman of AF Bank. Other clients to go live include Sacombank in Vietnam, where over two million customers are now supported.

As a bank that has historically run inhouse systems, we are delighted to have been selected by Danske Bank to support its corporate lending business. This demonstrates that corporate banks are increasingly turning to advanced packaged core banking software to centralise multi-country operations for significant improvements across risk management, cost control, product innovation and customer service, said Andreas Andreades, CEO of Temenos.

Microsoft partnership increases efficiency

Temenos has entered into a new alliance with Microsoft to deliver core banking solutions that greatly increase operational efficiencies for large-scale banks worldwide. By choosing the Microsoft platform, TEMENOS T24 (T24) customers will benefit from open, modern technology to accelerate innovation, greatly increasing the speed and effectiveness with which new products and services are created. This increased operational efficiency enables front-line staff to provide superior customer service at a lower total cost of ownership. Already 31 banks have selected TEMENOS Insight, the business intelligence (BI) suite announced in March 2009. Leveraging the BI capabilities of SQL Server, TEMENOS Insight enables T24 users to analyse and track financial performance, understand customer profitability and manage risk. Microsoft has a long-term commitment to supporting mission-critical operations in financial services. Our alliance with Temenos provides our largest financial services customers with a cost-effective platform on which they can build future-generation processing capabilities that meet the evolving demands of their business, said Susan Hauser, Vice President, Worldwide Industry and Global Accounts, Microsoft. Temenos has also extended its global strategic alliance with IBM, launching the java version of Temenos Core Banking (TCB) and T24 for IBMs System z server, and has agreed a new partnership with GFI Informatique to deliver TEMENOS T24 in France and other southern European countries.

Temenos tops IBS sales league

Temenos has attained top ranking in the IBS Intelligence Sales League Table for the third year running for its sales of back-office banking systems to new clients. Martin Whybrow, Editor of International Banking Systems journal, commented: Temenos had a strong year, continuing to sell well in most geographies and gaining its fair share of the years high-end and multisite deals. The breadth of T24 is a strength, as is Temenos international reach and resources.

See page 17 for information on the Temenos and Microsoft alliance implementation at North Shore Credit Union


The road ahead for retail banking

There are testing times ahead as retail banks get to grips with fundamental changes to their working environment following the economic crisis

In the post-crisis landscape, those banks that weathered the storm face a changed environment. Loss of trust in the banking sector and anxiety over the safety of long-term deposits are shaping customer responses to and demands of their banks. Meanwhile, financial institutions face greatly increased regulatory burdens, along with competition from new entrants to their markets. If regulators enforce more stringent Tier 1 capital requirements, banks will either need to curtail certain activities to remain within their newly defined capital base, or raise more capital, says Gareth jones, Retail Business Development Director at Temenos. The former will impact revenues and profits, the latter dilute shareholder return. Either way, increased efficiencies are needed to soften the blow. Banks have been cutting costs over the last 12 to 18 months and now

that the low hanging fruit of cost reduction is gone, the challenge is to find ways to take further costs out of the business, without adversely impacting the institution. The IDC European Banking Advisory Services Financial Insights: Top 10 predictions for 2010:The Year of Intelligence forecasts that banks will cut back on IT spending and will concentrate mainly on tackling issues around risk. The report also foresees a shift in attitudes to regulatory requirements, predicting: Banks will no longer be able to afford tactical regulatory compliance as IT budgets for compliance grow to 25 per cent. Banks will increasingly stand or fall on their ability to improve their operating efficiency and effectively address regulatory and market challenges, says Tim Walker, a partner at Deloitte. The innovators in this space are those


Retail banks for too long have treated customers as a fairly homogenous, amorphous group. Now it is time to focus on providing appropriate offers. Its not just about product innovation but how customers are treated
Gareth jones, Retail Business Development Director, Temenos

banks that are tackling issues caused by complex legacy technology, centralising operations regionally and globally, improving their internal controls and governance, motivating their employees, working well with their strategic suppliers and providing better value products and improved accessibility to their customers. Even banks in countries not directly affected by the global crisis are feeling the impact of new regulatory demands. For Kenya Commercial Bank (KCB), a robust automated system is the key to coping with several new demands arising from the international crisis. In addition to implementing the Basel II capital adequacy systems, the bank faces added requirements for services in operational risk, market risk, anti-money laundering (AML), automated fraud monitoring for both the banking and the credit card business, and the implementation of PCI/DSS standards. A shared regional infrastructure for credit rating is

also being set up. Automation is seen as key to delivering on all these areas, says Tony Githuku, Divisional Director, Information Technology at KCB Bank Group, Kenya. Those banks that already have robust, modern infrastructures will have the advantage of being able to keep expenditure to a minimum. This is one of the strongest factors influencing a rise in new entrants to the retail banking market, from start-up banks to retailers such as supermarkets looking to launch customer banking services. Newcomers are enjoying unprecedented opportunities to displace retail banks, says Rachel Hunt, an analyst at IDC. There have been a lot of new applications for banking licences more than 50 applications over the past 12 months. These players will have the advantage of lower maintenance costs thanks to new back office systems and IT infrastructures, remarks Hunt.

They will be much more integrated from front to back, having been able to review best practices for the business processes and work flows. Temenos sees a strong threat coming from new entrants who cross industries, not just startups, says jones. There are a lot of potential opportunities for both retailers and telecoms providers because they have mass access to customers. They have a lot of the infrastructure to handle billing and customer records, as well as strong distribution channels. Telecommunication companies are already active in payments in Africa, says Githuku. The MPESA system from Safaricom is a global first in size and capability for efficient money transfer using mobile phones. Many banks, including KCB, have opted to allow transactions with MPESA, either by mobile handset or via ATM, both providing new customer convenience.


Flexibility and ease of use on all the channels is key

Tony Githuku, Divisional Director, Information Technology, KCB Bank Group, Kenya

In Channy, president and CEO of ACLEDA Bank, believes that forward-thinking policies will help established banks to prevail against non-traditional incomers. As a mature bank, we are very proactive towards our customers needs. For example, when ACLEDA transformed to a bank in 2000, we knew that we needed to have a system in place from day one to support our growth, manage risks, and be responsive to our customers expectations. As one of the newcomers, ACLEDA Bank has developed quickly and grown faster than the players that already existed. Both established and non-traditional banks will have to deal with the fact that customer expectations of brands and service levels have changed as a result of the financial crisis and institutions are going to have to work harder to win trust. So what new customer demands have arisen in terms of products and services, and how are banks responding? Savings customers have shown a marked flight to quality, says Walker. For those with large deposit balances above the ceiling imposed by the local depositor protection scheme, there has been a dispersal of deposits across multiple institutions. Weve recently noted a greater willingness of customers to move their banking relationships because of underserved needs such as service expectations and transparency in pricing. For Deloitte, a key factor in the battle for customers will be improvements in customer service, part of which will be the extent to which channels are integrated. Walker notes: The requirement to put deposit gathering at the heart of the retail agenda implies branch- and service-led differentiation. The traditional banks may be forced to make radical efficiency improvements in the branch network, including changing what is done in the branches and the branch network footprint and improving cross-channel integration. He believes that these improvements will be easier to implement in those banks that have a more integrated banking platform once again indicating a competitive advantage for new entrants unencumbered by legacy estates and infrastructure.

The big new challenge is to create a seamless fit between channels, says Hunt. Banks really need to do the integration work that will enable them to be more flexible on the mobile channel in particular, to prevent it from being seen as just as an extension of the internet channel. A new channel requires a redesign of how the products are sold. It is critical that customers have the ability to transact on different channels while receiving similar seamless experiences, says KCBs Githuku. At the moment, the important channels are mobile, internet, ATM and branch, in that order. Flexibility and ease of use in all these channels is key. jones argues that cross-channel integration is important but warns about it being the sole focus. We also need to recognise that some sectors are going to want to interact increasingly on a remote basis. The currently unbanked youth, when they come of banking age, may never want to walk into a branch even to establish the relationship initially. Likewise, he says, not all established branch customers are interested in a cross-channel experience. Not surprisingly, there are signs that banks are placing a higher premium on putting the customer at the centre of the banking experience. There is a great opportunity to use technology to innovate around process optimisation, improving efficiencies and removing silos, notes jones. ACLEDAs Channy echoes the conviction that innovation is crucial if banks are to keep up with heightened customer expectation. Everybody in the banking industry is trying to do the same thing better, faster and more securely. If you dont have innovation, you will lose customers because your competitors are always trying to improve service quality and respond to customer needs. Some banks are already using groundbreaking new techniques such as allowing customers to compare themselves to their peers in terms of their financial behaviour, says Hunt. This is data that the banks already have, and they are delivering it to the customer as a usable service. Its all about integration of silos, extracting information and repackaging it in a customer-friendly manner. The ability of banks to engage with their retail customers as individuals will be key during the recovery. Deloittes Walker comments: How a bank prices its products and product bundles, according to the relationship with each individual customer, is an area where innovation could lead to competitive differentiation. The prospects are good for banks that can find ways to connect with their account holders in more meaningful ways, says jones. Retail banks for too long have treated customers as a fairly homogenous, amorphous group. Now it is time to focus on providing appropriate offers. Its not just about product innovation but how customers are treated.

New entrants to the market will be much more integrated from front to back, having been able to review best practices for the business processes and work flows
Rachel Hunt, Analyst, IDC


Branches and services will remain critically important for current accounts, savings and mortgage products and be a real way for new entrants to differentiate
Tim Walker, Partner, Deloitte


The new retail banking market

A more realistic approach to risk on the part of retail banks is just one of the factors that will shape the market this year and beyond. Tim Walker, Partner at Deloitte, looks at how the industry is changing
The retail banking sector is undergoing a cyclical restructuring in the light of changes to market dynamics as a result of the credit crunch. In our view, this will result in more rational pricing of loans, a consolidated competitive landscape, and a focus on traditional forms of balance sheet funding driven by retail deposits. Banks are refocusing from the asset to the liability side of the balance sheet, with an increased focus on margins and re-pricing of new business. We have seen some consolidation and market exits but also new entrants, not encumbered by back book issues, who are attracted by the renewed profitability of the sector. In all of this, the importance of brands, customer touchpoints and consumer trust is heightened, as banks seek to secure profitable customer relationships, and exit those that are unprofitable or high risk. Alongside the changes in the market, there is every indication that regulators will become more intrusive and demanding, forcing banks to increase their protection against default and reduce potential future reliance on the state to bail them out in times of crisis. We recently commissioned a survey of around 2,000 UK consumers, which demonstrates a clear demand for more service-led propositions in the retail banking sector. Compared to two years ago: Around 70 per cent of consumers are more aware of their finances 6 out of 10 consumers are much more concerned about how safe their bank is Two thirds of consumers have become more concerned about how their bank treats its customers, with more than a fifth of consumers having moved a banking relationship due to this dissatisfaction A quarter of consumers are prepared to move their relationship to a new, nontraditional bank based on considerations such as fees, service, ethics and management pay. Conversely, those that wouldnt consider such a move state that security of their money and expertise at the traditional banks are the key factors. New players will seek to capitalise on consumer distrust of traditional banking brands, the lack of alternatives and the higher margins that the industry is now experiencing. In the UK, a number of organisations are preparing to enter the banking market, aiming to take market share from incumbents burdened by merger integration and disposals as well as de-risking their own balance sheets. Our research suggests that branches and services will remain critically important for current accounts, savings and mortgage products, enabling new entrants to differentiate. There are typically two routes to market for new entrants acquire and extend existing banking assets or build a greenfield bank. Both routes require funding at the right price and deep management expertise and will come under heavy regulatory scrutiny. The increasing availability of localised third party banking platforms and new pricing and sourcing models for these is removing a significant barrier for new entrants. As the flow of wholesale capital dries up and regulation intensifies, a number of flawed business models have unwound. Banks are repricing loan books to reflect the real risks underlying them, while the funding of current accounts by overdraft fees will remain under intense scrutiny. LOOKING AHEAD

Deloitte predictions
Growth in branch-based savings UK banks may end free current accounts or force customers to bundle them with other products although very efficient banks may be able to offer significantly lower fees. Personal loans will become more expensive and credit card balances will contract as banks look to reduce their higher risk-weighted assets. Increase in mortgage profitability for banks Mortgages will become less commoditised, more expensive for consumers and more transparently priced. Arrears and repossessions may decline, due to the longterm low interest rate environment. a shift to own branded channels for traditional banks Power is shifting back to product manufacturers and trusted consumer brands. Branches will become a key battleground for retail banks as they experience pressure to drive affordable retail deposit funding. Other trends: Customers will increasingly research online and fulfil in branch Lenders will take greater control of distribution The number of intermediaries such as mortgage brokers will decline due to the disappearance of sub-prime mortgage commission New entrants will address their lack of branch footprint by concentrating on direct propositions



Our aim is to help T24 banks leverage sophisticated technology to deliver a truly differentiated customer experience as the basis for continued growth and profitability
Koen Van den Brande, Product Director, Front Office, Temenos


Sophisticated front office strategy for Temenos

Building on a strong track record in helping banks address cost and operational efficiency issues, Temenos is developing a robust new front office strategy
In recent years, Temenos has proven the value of the T24 Model Bank and reference Processes in helping banks quickly implement modern core banking technology to stay ahead of the cost curve and deliver superior levels of profitability and cost/income ratios. By implementing T24, banks put in place a highly flexible platform that enables them to keep fine-tuning processes over time, to ensure ongoing regulatory compliance, to support competitive product innovation and, most importantly, to enable their staff to understand and serve customers better. So why are we talking about a new front office strategy for Temenos? The reality is that Temenos has not to date attempted to build a business which is focused entirely on helping the banking industry improve the customer experience. And yet over time, we have put in place many of the technologies that are a prerequisite to making this possible. Not only does T24 have a built-in single customer view across a broad portfolio of banking products, in addition we have invested in process and workflow capability, a rules engine, event processing and an open multi-channel architecture with support for branch, call centre and internet, and the ability to complement these with partner offerings for mobile banking and interactive voice response capabilities. With T24s Acquire, Retain and Crosssell (ARC) set of modules, we have laid the foundations for integrated customer relationship management capabilities around the definition of marketing campaigns, identification and tracking of opportunities, and the fulfilment process and workflow. The new front office strategy recognises that technology spending by banks is often evenly balanced between front and back office. When the focus shifts to customer acquisition, service and retention, front office spend tends to significantly exceed back office spend. Hence Temenos will demonstrate a renewed focus in coming years on the front office, with investments in branch automation, a next-generation internet banking platform and extended mobile banking capability. This will be complemented by specialised workflow-based origination functionality, combined with a new focus on real-time customer analytics. We will also add personal financial management capability to help build a consolidated picture of the customers financial profile. There will be sophisticated needs analysis, and finally a real-time decision engine to assist bank staff with maintaining a meaningful conversation with customers, based on the wealth of information available. Our aim will be to help our customers to leverage sophisticated technology to deliver a truly differentiated customer experience as the basis for continued growth and profitability. As part of this, our focus for R11 will be on the four elements of branch, internet, mobile and origination. In the branch, we will further enhance our teller functionality. The new multi-line transaction capture mode wilI feature increased support for easy integration of specialised teller devices. This is one of the first functions to benefit from the new T24 user interface. On the internet, we will introduce new capabilities to enable a banks web designers to create a highly customised and brand-specific customer experience, extending existing capabilities for retail, corporate and wealth management use. In an effort to help our customers build deeper relationships with their customers, we are exploring the possibility of enhancing the retail internet experience by means of the addition of personal financial management capabilities. In mobile banking, we are anticipating rapidly growing demand and will be working closely with our partner FEMobile on closely integrating the mobile banking platform with T24s multi-channel architecture. With this mobile platform, we also have an opportunity to engage in mobile commerce applications, which are already showing signs of driving adoption. Finally, we will build on our existing loan origination capabilities (available with the combination of LO24 and the T24 workflow engine PW) to introduce next-generation origination capabilities. This will be built entirely around workflow and will be capable of interacting with external third-party process orchestration engines. Starting with R11 and for coming releases, we are keen to engage in a dialogue with our customers to ensure we fully recognise their requirements. Feel free to join in the discussion on the Customer Collaboration Portal.



With T24, Bank of Shanghai has effectively future-proofed its IT infrastructure

jiang Hong, Vice President, Bank of Shanghai


Bank of Shanghai
Bank of Shanghai is using T24 to achieve strong results in the booming Chinese banking sector
Bank of Shanghai has adopted T24 to help it take advantage of the significant market opportunity in China. a booming economy and mass urban migration are creating the conditions for accelerated growth in the Chinese banking sector. But, given that the government is deregulating and internationalising the market, competition is also increasing. as Bank of Shanghai appreciated when it made the decision to replace its core system, only the most agile players will truly be able to capitalise on the opportunities available. Bank of Shanghai (BOS) is the largest bank in China to have successfully replaced its core system with an international packaged solution. In 2002, it undertook a selection process that evaluated the option of an internal build alongside the option of taking a packaged solution from an international or local vendor. In the end, the banks desire to adopt international best practices saw it come down in favour of an international solution. Among the systems considered, T24 from Temenos emerged as the clear preference based on customer references, level of integration, implementation record, functional coverage and strength of business processes. A complex implementation involving high levels of localisation and process reengineering, the project was delivered fundamentally on time and on budget. The project was started in 2004 and T24 went live in the corporate bank in 2006 and in the retail bank in 2008. Since going live, T24 has acted as an important catalyst for Bank of Shanghais strong recent absolute and relative financial performance. jiang Hong, Vice President, Bank of Shanghai, comments: With T24, Bank of Shanghai has effectively future-proofed its IT infrastructure. We have a platform that is robust and scalable enough to support our ambitious growth plans. We also have a platform that allows us to standardise our processes and extract the scale benefits of growth. Lastly, the system allows us to have one complete view of the customer across all operations and gives us the flexibility to take advantage of this, by tailoring products and services to individual customer needs. By affording a single view of the customer, T24 has enabled seamless service across all channels, quicker decisions (mortgage approvals, for example, are given 75 per cent faster than before) and a differentiated experience for customers. Better customer service is translating into faster growth: in 2008, Bank of Shanghai grew loans at 18 per cent compared to the peer group average of 16 per cent, and deposits at 21 per cent versus the peer average of 19 per cent (A Temenos study benchmarking Bank of Shanghais performance against 22 similar sized Chinese city commercial and joint stock banks is available on request). We also estimate that the bank grew revenue per customer by around 16 per cent. T24 has dramatically reduced the cost and time to market for new products. Development times have been reduced by between 60 per cent and 75 per cent and development costs by even more. BOS is launching new (often truly pioneering) products on average every one to two weeks. It was the first bank in China, for example, to launch a joint retail and corporate card. In the last two years, the bank has grown fee-based income at a compound rate of 25 per cent, to a level that is 1.6 times the average for city commercial banks and its net interest margin, for the first time in 2008, overtook the level of peers. As an integrated and robust solution, T24 has allowed BOS to extract IT economies of scale as it has grown. In 2008, the bank grew its operating income by 28 per cent and added around 700,000 new corporate and retail customers, yet its IT headcount increased by only 68 people. We estimate the banks ratio of IT costs to total costs to be around 4.8 per cent, translating into an IT cost to income ratio of 2 per cent. To put these figures in context, the banks IT/total cost and IT/income ratios are, respectively, 71 per cent and 82 per cent below the average for European retail banks (source: Boston Consulting Group). Furthermore, its ratio of IT cost to total assets is 44 per cent lower than that of other Chinese banks. By offering up-to-date, integrated and complete information, T24 has help to considerably improve risk governance and management decision-making. Non-performing loans (NPLs), for instance, have fallen continuously since 2006. By the end of 2008, the banks level of NPLs was 2.2 per cent compared to 2.3 per cent for the peer group and 2.4 per cent for the Chinese banking sector as a whole (source: CBRC). In 2008, Bank of Shanghais return on capital was 125 per cent higher than the average for the top 1,000 banks (source: The Banker) and 15 per cent higher than domestic peers.



We believe that the AML market offers significant growth potential and our success in penetrating this market will prove an important factor in executing our ambitious growth plans for Temenos
Andreas Andreades, CEO, Temenos

Enhancing our offering: Temenos acquires Viveo

The acquisition of Viveo promises powerful new capabilities in several core areas of expertise
With the integration of Viveo at the end of 2009, Temenos made its largest acquisition to date, creating a powerhouse in the French market. The combination of the two companies businesses in France creates a group with a market share of around 50 per cent, with 800 customers, 480 employees and offices in Paris, Brussels, Geneva, Bucharest and Casablanca. During the first three months of working together, the Viveo and Temenos teams have focused on communicating their respective solutions in order to gain a clear understanding of specific strengths and points of convergence. The alliance with Viveo in the French market has delivered some key products that Temenos will promote. In particular the ranges of online and mobile banking products are very mature. In addition, the new combined French territorial offering includes the most comprehensive solution to French regulatory and reporting requirements in the market. On 30 March Temenos and Viveo organised an event in Paris for 200 customers. The main objective was to present the new strategy and product range for the French-speaking market. Solutions include TEMENOS T24, TEMENOS Insight, online, regulatory, promo, TEMENOS AML and TEMENOS STeP payments repair. The event was attended by representatives of 150 financial institutions. The Viveo acquisition broadens the Temenos product offering, moving more materially into the anti-money laundering (AML) and payments areas. A new product range has been developed, based on TEMENOS T24, which will be promoted worldwide. This is a very exciting time for Temenos as we enter into the AML market through the successful acquisition of Viveo, says Temenos CEO Andreas Andreades. We believe that the AML market offers significant growth potential and our success in penetrating this market will prove an important factor in executing our ambitious growth plans for Temenos. There have already been several encouraging signs that the TemenosViveo alliance has got off to a good start. The financial markets have reacted well, and there has been positive feedback from Viveo customers. The new team has also signed two significant new contracts: with Barclays for the AML solution and with Tunisian Foreign Bank (TF Bank), a customer that has now selected T24. TF Bank chooses Temenos-Viveo solution Established in 1977 as Union Tunisienne de Banque (UTB), Tunisian Foreign Bank (TF Bank) has its head office in Paris. The banks customers include Tunisians living abroad, professionals, small and medium enterprises and corporate customers. The agreement with TF Bank, which has been a Viveo customer for three years, represented the first opportunity to showcase the new Temenos-Viveo product range and the shared work of sales, pre-sales and services teams. In 2009, as part of its development strategy, TF Bank decided to replace its IT system with global banking software. As it had already used several modules from Viveo, the bank signed up for, the Viveo global banking solution. Early in 2010, following the acquisition of Viveo into the Temenos group, TF Bank launched a revised study and an advanced analysis of T24 functionality. The focus was on the synergy between the two solutions. Three months later, TF Bank chose T24



an introduction to TEMEnOS aML New legislation has forced financial institutions to place anti-money laundering (AML) at the heart of their business and to incorporate prevention policies into their operational management strategies. These obligations have increased the need for banks to ensure they have effective AML procedures in place. In response, TEMENOS AML (AML) has been developed to provide a comprehensive business solution that offers banks the software and expertise required to improve their approach to anti-money laundering, and comply with all legal obligations. There are two key products within AML: AML Profile (Profile) is an anti-money laundering system that monitors transactions in order to identify unusual patterns. It analyses single transactions as well as clients behaviour over a period of time in relation to their segmentation, facilitating reporting to the authorities where appropriate. Using an elegant set of algorithms, it provides great flexibility in defining rules adapted to the banks business and client base. Profile receives client, account and transaction data from T24 in batch mode. It is also capable of real-time analysis in order to block transactions before execution. for its core banking solution, interfaced with existing modules. TF Bank plans to complete its IT system with the online banking offering from in order to create new portals for individuals and corporate customers in France, Tunisia and elsewhere in Europe. TEMEnOS aML for Barclays Barclays has chosen TEMENOS AML (AML) for its Payments Consolidation and Next Generation (PCNG) screening solution. AML was benchmarked against other market leading competitors and proved to be the fastest and most operationally efficient offering. It will be deployed globally to replace existing platforms and consolidate payments and transactions screening. As the solution of choice for Barclays, AML includes Linguistics, which will enable the banks Next Generation Programme to achieve superior levels of screening. The application of Linguistics in Barclays is a sophisticated solution to address the increasing challenges of cultural variations and subtleties. This heightened detection capability is coupled with industry leading intelligent false positive reduction methods from Temenos, designed to drive down total cost of ownership and increase operational efficiency. Paul Fabara, Managing Director and Global Head of Operations, Regulatory Implementation and Planning at Barclays, commented, After a rigorous technical assessment of the leading sanctions screening solutions available, the decision to select Temenos for the Barclays global initiative was relatively easy. The banks approach to global compliance is unequivocal we want to lead by example and have found the right product to help us protect that position. AML Screen (Screen) is a sophisticated screening solution. Integrated into T24, it screens customers and transactions against sanctions watch-lists published by regulatory authorities such as OFAC, as well as databases of politically and financially exposed persons, such as those maintained by independent list providers. In its standard configuration, Screen provides watch-list management, compliance case review and skip management. It has preconfigured statutory reports in an ergonomic, optimised user interface. In addition, a dedicated module helps banks run periodic scans of their entire customer files. Screen also exists as a packaged out-of-the box solution to meet the needs of smaller financial institutions in combating terrorism financing. This T24 module screens customers and transactions against sanctions watch-lists and databases published by regulatory authorities such as OFAC and the European Union.

an introduction to TEMEnOS STeP payments repair TEMENOS STeP payments repair is a tool that repairs and enhances payment messages, in a variety of formats. It is integrated with T24 for both inbound and outbound messages. In addition to the engine, the system has two optional components: Solver for operator-assisted repair and enrichment and Evaluation, which generates reporting to support back-charging and efficiency of STP rules.



Banks need to offer a differentiated and highly personalised service, centred on relationships, not products
Ben Robinson, Director, Strategic Planning, Temenos


Creating value for customers

What sets profitable banks apart? Ben Robinson examines the key factors that make a difference
The banking crisis is having profound consequences for the industry: banks have disappeared; balance sheets have shrunk considerably; wholesale and credit market funding has become more tightly rationed; and liquidity in certain financial markets has all but dried up. But there are still more effects to come, especially regarding government regulation. In the developing world, rapidly growing demand places different kinds of strain. Consider China, for example: mass urbanisation and a booming economy are creating enormous demand for banking services, putting pressure on banks systems and processes. Moreover, the governments move to internationalise and deregulate the market is also intensifying competition, meaning that coping with demand is not enough banks also have to improve their customer service, efficiency and risk management. What is constant across all markets, however, is that the best banks are already reacting, adapting their practices to stay ahead. Where these banks also run modern software, they are responding faster and more cheaply helping them to generate higher returns than their competitors. Becoming king again how Temenos software helps to improve customer service and innovation In the developed world, shortage of funding is forcing banks to shore up their deposit bases, while also increasing the pressure to generate high-quality assets and higher fees. In the developing world, where wholesale funding was never especially prevalent, competition for deposits remains strong and is intensifying as customers become more discerning, governments deregulate and Western banks come in search of faster growth and higher returns. All in all, successful banks need to offer a differentiated and highly personalised service, centred on relationships, not products. New market entrants, like BforBank (see case study, page 16) in France and Metro Bank in the UK, are using Temenos technology to help them achieve this. BforBank, for instance, is setting itself apart from peers through the quality and volume of the information it makes available empowering an increasingly exacting, financially literate and technology savvy public to become their own private bankers. The quality of the user experience offered, based on the provision of rich, valueadded and interactive content, is unmatched except by vendors, like Amazon, outside of the banking industry. Established Temenos customers are also using advanced technology to improve their customer service. Techcombank, the fastest growing bank in Vietnam, has capitalised on the flexibility of T24 to launch a stream of innovative products helping it to grow deposits at more than twice the rate of the overall market. Leveraging scale economies how a modern, integrated platform leads to lower relative costs Banks spend more than twice the industry average on IT costs (source: Boston Consulting Group). The general assumption, which has sanctioned inaction, is that this reflects more complex and sophisticated IT requirements. This explanation justifies the lack of IT scale economies achieved and the failure to extract IT cost synergies from acquisitions. Temenos customers, however, are invalidating this assumption. EFG Bank, for example, has an outstanding record of realising IT scale economies. Since 1995, the bank has grown extremely rapidly, increasing clients assets under management (AuM) to CHF 87.7 billion as at end of 2009. EFG now employs around 2,400 people in over 50 locations in 30 countries, and has absorbed over twenty acquisitions. Yet it remains highly efficient in terms of IT: at less than 6 per cent, its ratio of IT to total costs is around one third the average for European private banks. Similarly, Bank of Shanghai (BOS) see case study, page 11 is also enjoying the significant scale advantages of adding more volume and customers onto an integrated platform. BOS is adding around 700,000 new customers a year, yet the bank only employs 367 IT employees. We estimate the bank has an IT to total operating cost ratio 60 per cent below the industry average, while its overall cost/income is 55 per cent below the average for the top 1,000 banks and 15 per cent below the average for domestic peers. Seeing the whole picture how a single view helps to manage risk Diversification and disintermediation were meant to mitigate risk; instead, they created greater complexity that made risks even more difficult to manage. While many activities will likely be scaled back, the renewed focus on robust risk management will remain. Banks will need to write higher quality business, which will require strong pricing and underwriting skills and, more crucially, a complete view of the customer. T24 customers have been taking advantage of this complete view of risk to manage and price risk effectively. Techcombank, for example, grew gross loans by 199 per cent between 2006 and 2008 around 30 per cent faster than the overall market but its level of non-performing loans actually fell to 2.56 per cent.



We believe that a process orientation, coupled with technology, is starting to redefine operating models
Gareth jones, Retail Business Development Director, Temenos


The rise of dematerialisation: Cost Reduction 2.0

Banks can manage costs by implementing dematerialisation, says Gareth jones
Dematerialisation is essentially doing more with less and we are seeing it increasingly in the banking sector. In the last two years, 5.5 trillion dollars has been wiped off capitalisation of the global banking sector (a fall to 60 per cent of peak levels). Many of the gains made to key performance indicators pre-crisis have suffered set-backs: Boston Consulting Groups global banking database indicates global rises in cost/income ratios, falling return on assets and soaring loan loss provisions. There is increasing pressure to quickly reinstate improvements that had taken the best part of this decade to realise. If anything, the outlook is even more challenging; if regulators demand higher Tier 1 capital requirements, this will further squeeze return on equity, without improved efficiency measures to offset the impact. Many banks have implemented cost-cutting measures in the last year or so, often involving staffing cuts. However, there is evidence that reducing staff without aligned improvements in operational processes is having a negative impact on customer satisfaction, with potentially adverse financial consequences in the longer term. The next wave will be a more calculated and measured approach, but there are significant gains to be achieved. Smart banks will use these levers to pull away from the crowd. Not surprisingly, most of the areas with the biggest potential require the exploitation of technology, or demand a re-think on how technology is being used. The elimination of waste from banking processes has more mileage. Techniques such as Lean/Six Sigma can play a role here. Discipline is needed to be able to measure and determine sustainable savings and improvements at the same time. Yet equally important is an underlying technology infrastructure that can support the reconfiguration of the business. Where the technology actually embodies a process model, it is easier to achieve optimisation of these processes and improve continuously. At Temenos for example, we are finding that our T24 Process Models, and the services offered by our Management Consulting Practice and our partners around these, are increasingly resonating with clients. After all, if processes are documented, they can easily be challenged. If processes are implemented, they can continuously be refined. Focusing on optimisation of existing value chains is important, but one of the major criticisms of methods such as Six Sigma is that they do not do enough to help invent or disrupt the future through new products and services, for example. We believe that a process orientation, coupled with technology, is starting to redefine operating models. For example, banks can rightly claim to not be fully responsible for potential inefficiency or waste related to the authentication and verification process during new customer acquisition. Current models (and regulators) usually disrupt what could be a straightthrough process by insisting that potential clients provide physical proof of ID. This either involves inconvenience through a visit to a branch or delay and concern if the original documents are posted to a service centre for processing. However, regulatorfriendly services are emerging that verify the individual electronically. This is game-changing for internet customer acquisition, but the real trick will be to extend this to the branch where arguably it is not needed since clients can present documents as they have done for years. Now we have common processes re-used across channels, along with greater customer convenience, and a slicker fulfilment process. This can start to redefine the role of branches an area where the debate is still raging as to what purpose precisely the customer of the future will use them for. Business re-engineering of this nature will give some institutions a huge advantage. Dematerialisation is also a growing trend within the IT function. We are seeing increased focus on addressing the IT cost base, and arguably this is long overdue. Research confirms that banking has higher IT costs as a percentage of total costs than practically any other industry. One reason that might explain this disparity is that banks have been slower to adopt commercially available packages and components to the same extent as other industries. This is now changing and there is a growing trend (among the bigger banks especially) towards the adoption of package applications. Appropriate technology platform choice can offer significant cost reduction over time. This is true of hardware, and increasingly of core systems too. Core system replacement is a major undertaking, but for many institutions this may be the next big move to dematerialise the organisation. Dematerialisation presents a final challenge the likelihood that significant investment will be needed to effect a sustainable change in the cost base. Yet this investment, carefully calculated, will lead some institutions to the head of the pack.



What really convinced BforBank was the flexibility and international nature of the Temenos system, as well as its wide coverage of front and back office functions
Vincent Chatard, COO, BforBank, Credit Agricole Group


BforBank harnesses T24 for affluent online market
There has long been a demand for high quality online banking that meets the needs of the demanding affluent market. BforBank is providing this specialised service to high-end customers in France, and its banking engine is T24 from Temenos. An internet bank aimed at the affluent, BforBank offers savings accounts, life insurance and securities. The bank targets customers such as directors, doctors and professionals aged between 35 and 65 who want to manage their own money. Part of the domestic retail arm of Credit Agricole, BforBank is a business in its own right, with specific objectives and mission. BforBank attracts customers by offering access to a comprehensive, free repository of financial information on its website. The journey within the website involves a series of links, encouraging visitors to navigate through the website. Relevant approved products are recommended in ways that encourage interaction. Customers can use the tools on the site, including calculators and walkthough illustrations, to customise their own investment style. The BforBank website, built in 2009, harnesses user-generated content and is a repository of rich information, designed for interaction and engagement. It enables the bank to process stores of data into digestible, actionable intelligence for consumers. The system uses customer data to recommend appropriate products and manage upselling, and can offer a member incentive programme for referrals. The lean technology base and industry tools ensure a low cost base. Information is free to browse and all interactive features are free to use. Visitors must register to save any output from simulations, thus providing detailed customer information, which the bank can use to provide them with appropriate products. T24 pre-allocates accounts, so that when a customer opens an account all the necessary information is in the system. As a result, the bank can open accounts very quickly as there is no replication of data. BforBank chose T24 as the main database to handle accounting, customer files, regulatory reporting, prospects and products. The banks customer advisors benefit from having all data residing in one location to help them deal with queries quickly and fully. T24 sits on servers owned by the Credit Agricole group. A major strength of the BforBank approach is the real-time system that T24 provides for the bank. This allows for ease of integration through open solutions, data and services in XML, says Vincent Chatard, COO, BforBank, Credit Agricole Group. What really convinced BforBank was the fle xibility and international nature of the Temenos system, as well as its wide coverage of front and back office functions. With the aim of being the first true internet personal bank, BforBank offers its customers the quality of information and range of tools available to financial advisors, so that they can become their own private bankers. The banks slogan, Mon banquier cest moi (My banker is me), reflects the empowerment of individuals to handle their own financial affairs. Customers input their own data and can manage their accounts, make comparisons, and access calculators and tax reports. Deposits are invested with Credit Agricole, which primarily handles investment in low-risk, AAA rated securities. As the only international vendor that BforBank considered, Temenos won the contract in the face of competition from French core banking vendors, Viveo (now acquired by Temenos) and SAB. The project started in February 2009 and Temenos supplied the system in july and after trials, it went live in October 2009. Temenos key differentiators against international competitors were its presence in France and the flexibility and scalability of T24 set it apart from local solutions. BforBank targets an addressable market of four million affluent customers with a savings balance of EUR30,000 or more. Having opened 15, 000 accounts in less than three months, the bank has set a goal of 40,000 accounts per year, which over five years would allow for a market share of around 7 per cent.



Were looking to drive out operational slack and improve customer service, and what we saw with Temenos was a maturity of straight-through processing
Fred Cook, NSCU chief information officer


North Shore Credit Union

Changing a financial services platform is a highly complex process. North Shore Credit Unions choice of T24 has enabled a smooth transition
Founded more than six decades ago, Vancouver-based north Shore Credit Union (nSCU) has built a strong reputation for customer-centred innovation. Offering a wide range of banking, investment, loan and insurance solutions, nSCU employs some of the most knowledgeable financial advisers in the Canadian market. When NSCUs banking platform faced integration difficulties and problems with inflexibility, the credit union began to search for a solution. The first issue that had to be resolved was architectural compatibility, says NSCU Chief Information Officer Fred Cook, who manages strategic integration and risk analysis of NSCUs technology systems. We needed a system that would fit in with and leverage our other systems, especially our CRM and ECM systems and our BI engine, as well as our business processes. Since NSCUs core enterprise environment is based on Microsoft Windows and SQL Server, any solution also had to work smoothly with those technologies. TEMENOS T24 (T24) stood out from other available options for its ability to meet all of these diverse demands. NSCU became the first Canadian customer to adopt the T24 system, becoming one of around 700 banks around the world that use T24 to deliver innovative, market-driven products and services. Temenos has a strong culture of continuous improvement, with a history of R&D and development of their products to keep moving forward, says Cook. Were looking to drive out operational slack and improve customer service, and what we saw with Temenos was a maturity of straightthrough processing. The partnership between Temenos and Microsoft was also an important motivator in NSCUs choice of provider, adds Cook. We feel that Microsoft and Temenos have gone to the next level with their recent strategy agreement, opening up a core Windows-based SQL banking system to a wider banking environment. Temenos in turn was impressed with NSCUs track record, says Adrian Hadley, retail banking product manager at Temenos. We recognised that although NSCU is a relatively small institution, they are forward thinking and customer focused, with a uniquely flexible approach to customer service that allows their members to customise their accounts to meet their own unique circumstances. This fosters huge brand loyalty and delivers high customer retention and cross-sell rates. The T24 solution appealed to NSCU because of its simple design: everything runs on a common architecture with a customer centric, browser-based user interface. For NSCU, this approach was particularly attractive because it would allow the organisation to meet its goal of maintaining a highly compact technology footprint. Temenoss T24 Arrangement Architecture allows for a componetised approach to product creation and servicing which provides NSCU with a flexible catalogue that can bring new products to market very quickly. There is the option to mix and match components to create new products, adding more components to the catalogue along the way. NSCUs members will feel the benefits of this flexible architecture in the form of a wider range of services, segmented and targeted products and more detailed financial statements. The enhanced cross-platform integration of the T24/SQL solution will allow NSCU to streamline business activities, reduce business cycles and cut operating overheads by automating back-end processes. An important target of the project was to replace existing functionality, introducing new elements only where it made business process sense and could be done quickly. NSCU was determined to keep scope creep to a minimum. T24s sturdy business process and governance capabilities enabled NSCU to enforce business rules, which was not the case with the old system. The credit union also leveraged the T24-SQL Server platform by integrating the Syntellect Communications Portal to provide a solid base for communications. Temenos developed a banking model specifically for Canada, which has a robust tax shelter product mix and an approach to mortgage products that differs from that found in many other countries. Our Model Bank is the accumulation of many years of experience and more than 700 implementations, says Hadley. Weve put a distillation of best practice processes and user interfaces into the Model Bank. Our clients can hit the ground running with a preconfigured installation. NSCU has started to see the benefits from its implementation of T24 with the platform now installed on the lending side of the business. Temenos is continuing to expand the Arrangement Architecture internally and there are plans to drive more products out on the deposit and current account sides in the coming months. Cook comments: We regard Temenos as the next generation of retail banking that will give us the competitive edge in the marketplace.



Effective partnerships are one of Temenos greatest strengths, underpinned by our commitment to open solutions, and our alignment with the three major technology stacks

A partnership approach
This is the time of year when Temenos, our clients and our partners gather at the Temenos Community Forum (TCF) to review and plan for the opportunities ahead. At Temenos we understand that our clients can derive more benefit from our products if they are efficiently aligned to the services and products from our partners. This article will look at those partners that provide the platform technology that is needed to operate an efficient and modern banking system. Effective partnerships are one of Temenos greatest strengths and are underpinned by our commitment to open solutions, and our alignment with the three major technology stacks in the market. Id like to explain how these essential elements work together for the benefit of our customers. Why do we have an open systems strategy? We believe that it is essential that we do not restrict the choices available to our clients. Partners enable us to offer our software on a wider range of technology platforms than any other core banking vendor. This is important in that we do not dictate any particular technology, but leave the choice to customers enabling them to achieve the lowest total cost of ownership (TCO) or to leverage existing skills, investments or vendor relationships in order to achieve the highest possible return on investment. When you consider that our diverse client base includes both smaller microfinance institutions and larger multinational banks, then it becomes immediately obvious that technology requirements will differ greatly. We partner with a variety of different types of organisations in order to offer the fullest possible service and options to our clients. Our services partners, such as Cognizant, allow Temenos to offer customers more choice over which advisors they use and give them access to world-class business management and product delivery skills. In order to become a Temenos certified service partner, organisations must commit to training significant numbers of consultants as well as committing to use the established methodology for implementing our software thereby combining these organisations expertise with the proven products, methodologies and tools that Temenos offers. Core banking systems represent substantial investments in time and effort and for these reasons they are built for the long haul, with most core systems supporting their banks for at least 10 years and some lasting up to 30. Open systems provide the necessary flexibility to deliver the best solutions to our clients today and into the future. It means that as particular technologies adapt, evolve or are replaced we are in a position to help clients transition to the new technologies with the lowest possible effort and risk.


However a commitment to openness does not mean that we can remain unaligned to those technologies that are most beneficial and most popular with our clients. This is particularly true in the area of databases, application servers and operating systems where we have worked closely with our partners to ensure that T24 exploits the capabilities of the chosen platform to reduce cost and improve performance for our clients. In practice this means that we align our products with the three industry leading technology stacks; those from IBM, Microsoft and Oracle. We also have particularly strong relationships with those partners that provide the underlying hardware on which our solutions run, most importantly with Hewlett Packard. The theme of this years TCF is Innovation, service and efficiency the route to profit. We show our commitment to innovation by remaining an open solution whilst having clearly aligned partnerships. Our clients can benefit from both the innovation and service that both we and our partners provide. Clients get all the investment that Temenos makes into the product, along with the flexibility that allows them to innovate and they can get exactly the same benefits and flexibility from whichever platform they choose. The end result is efficiency and profit.
Temenos Community Forum 2009, in Monaco


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the most profitable banks run TemenoS

62% 54% 7.2


higher return on capital

higher return on assets

points lower cost/income

The data for this analysis comes from The Banker - Top 1000 banks 2009. Average values for Temenos customers compared with average values for all other banks.

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