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2 Universal Banking Systems Market Report |

The Market
Make-up And Evolution
To understand today’s market and offerings, it is worth spending Mumps-based system was emerging from a US company
a short time considering its history. For one thing, even some called Sanchez, set up by two brothers (now FIS’s Profile).
of the current best-selling offerings have roots that go a long
way back. At the outset, the source of retail banking systems As the 1980s progressed, other systems started to
tended to be the US. Over time, other applications emerged emerge. Out of Australia came Financial Network Services
from elsewhere around the globe, with Europe, Australia, the (FNS), with a system developed at State Building Society of
Middle East, Asia, and Asia Pacific all making contributions. India New South Wales (today the system is known as TCS Bancs).
became an ever more important source of software, including The system moved into Asia Pacific and the Middle East.
offerings from some of the domestic heavyweight suppliers. In Spain, a development towards the end of the decade
Another, rarer source, has been the in-house development that at Caja Cantabria produced a mainframe-based system
has been turned into a commercial offering. And a third source called Altamira, which started to be touted by Andersen
has been other sectors, with suppliers seeking to move their Consulting. Today it is Alnova within Accenture.
applications across into the typically higher-value retail domain.
There were a few other local systems, plus a couple of
The early US-derived offerings were primarily mainframe- packages that were sold for a while and then disappeared
based and typically came out of individual banks or groups without trace. However, the market was not overflowing
of banks. Some remained firmly in their domestic markets; with solutions. During the 1970s and 1980s, most banks
some tried to make it onto the international stage and opted for the in-house route. While packages flourished on
failed, due to their single currency nature and/or the fairly the more standard international banking side, there was
broad differences between retail banking in the US and the less of a market in retail banking.
rest of the world. Two that made their mark in a big way
outside of the US were Systematics and Hogan. The former The banks’ retail business was usually confined to their
made strong inroads in Latin America and Asia Pacific; the domestic markets, they had large IT resources, and there
latter moved into Europe. was a belief that one size did not fit all in this sector, with a
competitive edge to be had from these core systems. The
These were primarily systems for mid-to-large banks. The resultant solutions became embedded at the heart of the
source code was typically provided and this formed the basis organisations, with a mass of interfaces. They stretched to
for bespoke developments. Big US banks were among the millions of lines of code, much of it poorly documented and
recruits. Systematics gained Citibank, Chase and Chemical unstructured. The maintenance costs spiralled upwards and
Bank as customers, for instance. However, by the start of the the task of extracting and replacing them became ever harder,
1990s, the systems were showing their age, with flat files so too sourcing of expertise.
no longer in favour. Both changed hands. Systematics was
acquired by Alltel, Hogan by Computer Sciences Corporation Lower down the scale, there was a requirement for
(CSC). While sales continued to come in, the systems started systems to support ‘universal banking’, typically for smaller
to shine less brightly as the decade progressed. entities based in developing markets. Ireland-based Kindle
successfully moved into this niche with its Bankmaster system,
Also back at the start, there were a number of so too Citicorp subsidiary, Citil, with Microbanker. Over time,
smaller US-derived offerings, from the likes of Eastpoint a number of pure corporate banking systems gained retail
Technology (with a Wang-based offering), Kirchman, banking functionality as well. This was true of the GWB system
Jack Henry & Associates (with an IBM midrange-based from Unisys and Equation from Kapiti. Even a system such
solution), and Capital Services Group, with Capbank (later as Misys’ Midas, which is today viewed as an out-and-out
to metamorphosise into Baton Rouge and its Total Concept corporate banking solution, gained retail banking modules.
offering). At the end of the 1970s, Citibank started to sell an
in-house developed IBM midrange-based system. This was The broadening of the corporate banking solutions was
ultimately taken up by Fiserv and became ICBS (rebranded not always convincing. Handling a relatively low number of
today as Signature). At around the same time, a DEC and complex instruments, or even processing large numbers of

Universal Banking Systems Market Report | 5

vanilla FX deals, is a different discipline and scale to that faced at any medium
or large retail bank. As a result, the offerings tended stay at the lower end. One
supplier which sought to go further than most in moving from corporate/treasury

market overview
to retail banking was Singapore-based System Access with Symbols (today with
Sungard under its Ambit brand). There have been successes along the way but
there have also been failures, and the transformations cannot be classified as an
unqualified success.

Meanwhile, a couple of additional specialist retail systems were emerging

from North America. In Canada, a development in the second half of the 1980s
at Richmond Savings produced a DOS-based system which was initially sold
in Canada and then moved beyond there as Ovation in the hands of Prologic.
Further south, a company called Phoenix was set up by Bahram Yusefzadeh. The
founder had a long pedigree, having started with Nu-Comp (which had a retail
system called Liberty) and then moving on to Kirchman. With a consortium of 26
regional US banks, Phoenix set about building a solution running on Windows
and Sybase. The system looked good in demonstrations and gained an impressive
list of recruits but there were delivery problems at some sites and the supplier ran
into severe financial difficulties, culminating in its sale in 2001 to London Bridge
Software (it was later bought by Harland, now D+H).

Around the globe, other solutions started to emerge. These were from the likes
of Fisa in Latin America, Autosoft in Pakistan and Infosys in India. Gradually, their
offerings moved outside of their countries of origin. Citil came up with a retail
system called Finware which originally ran on a proprietary Stratus platform. At
around the same time, Kindle launched a retail-specific offering, Bankmaster/RS.
With the formation of Midas-Kapiti International and the coming together of the
Midas and Equation businesses, the latter system was pushed even more strongly
for retail banking. Temenos’ Globus also increasingly started to move this way.

The divides were becoming blurred. This was also true of the traditional split
between banking for high net-worth individuals and banking for everyone else.
The private banking market had been dominated by ERI Bancaire plus a host of
more regional suppliers in places such as Switzerland, Luxembourg, and offshore.
As banks started to seek more customer-centric solutions for their core retail
business, so some of the private banking solutions moved into retail banking. A
number of systems such as Globus and, to a lesser degree, Midas, moved towards
private banking.

Banks were increasingly coming round to taking packages, at least at the

low to medium-end of the market. Was the increasing proliferation of packages
due to heightened demand; or was the demand driven by the wider choice?
Undoubtedly it was both. The one part of the retail banking sector which looked
under-populated by the end of the 1990s (and remains so to this day) was the
top-end. As mentioned, the likes of Hogan and Systematics no longer met with
everyone’s technical requirements but where were the replacements?

The in-house developed or heavily tailored packages were creaking. As margins

were squeezed in an ever more competitive world, so the huge IT overheads
could not be maintained. Banks needed to come up with better customer service
and more innovative products which could be launched in weeks, not months or

6 Universal Banking Systems Market Report |

years. And the internet revolution added to the pressures, partner. This system became SAP’s AM offering, now
necessitating true 24x7 processing. Deposits Management (BCA is now branded as Deposits;
the supplier also has a lending system, today branded as
In a relatively short time, a clutch of interesting looking Loans Management).
mainframe-based systems started to emerge. In fact, a
number of these were linked by common components, Developments such as these have taken longer than
particularly IBM’s attempt at a generic blueprint, the planned. The market did not rush to take Corebank second
Financial Systems Data Model (FSDM). This borrowed from time around. It came to reside with a joint venture set up by
all sorts of sources and was used as the basis for a number IBM and Alltel; it then passed to FIS. In the Spanish camp,
of projects. Not all of the projects succeeded by any means. ICT did not gain any takers for its system but the company
Indeed, the globe became peppered with failed retail was quite quickly acquired by that most aggressive of
banking system developments. One of the most notable suppliers, Temenos. The solution was rebranded as Temenos
was in Australia at Westpac. Corebanking (TCB) and the new owner gained a first order,
from Industrial Bank of Korea, followed by Mexico-based
There was eventual success in Denmark, within a Bansefi, but it has never taken off.
development started by the savings banks. IBM wanted a
mainframe-based back office system of its own and opted One trend that should be highlighted is outsourcing.
to back this project. Out of it came a commercial offering, There is a long tradition of this in the US and within some
Corebank. The fact that there was pent up demand at the other countries or communities of banks but back office
top-end of the market now became clear. No doubt fuelling outsourcing in general is still fairly limited. Some would-
this was the fact that, on top of all the business-related be providers have tried and failed, including a clutch
pressures, there was also now the challenge of making of offerings from banks. Most suppliers now offer their
the old systems Y2K compliant. Looking back, it is easy to solutions on a hosted basis, either directly or via partners,
forget the atmosphere of panic that this spectre generated. and there are a couple of recent providers with specific
A number of large banks took Corebank; they all failed to cloud-based offerings, albeit down at the very low end.
install it. IBM went off with its corporate tail between its
legs but decided to persevere with the system. It went live It is a tough challenge to come up with a fully-fledged
in Denmark and underwent a more muted relaunch. core processing system and it has defeated a fair few
start-ups over the years (it has also defeated established
Separately, IBM decided against pushing a system that providers when they have sought to do rebuilds). One
was emerging out of the Spanish rural banks. Instead, an company which tried to develop a pure Java-based offering
IBM manager who was closely involved with the project, was Dublin-based Trapedza. This was set up by a number
John Slater, set up a new company called Integrated Core of ex-Kindle staff and spent five fruitless years trying to
Technologies (ICT). The system was launched as Iris. gain takers (it came second at HSBC) before being acquired
by Misys.
Not everyone has succeeded. In Australia, BankWest
sought to turn its in-house developed system into a Traditional Africa specialist, Neptune Software, came
commercial offering, setting up a separate company called up with a system called Rubikon, while UK-based Sword
CBS. One bank signed for the system, in the form of Bank of Apak is a relatively new entrant as well, with Aurius (but
Scotland, which was a part owner of BankWest. However, is UK specific at present, so doesn’t feature in this report).
the commercial plans came to nothing, with the plug Misys is now pushing the Trapedza-derived solution as
pulled on CBS in mid-2002 (although the BankWest system Fusionbanking (previously as Bankfusion), albeit with
was duly implemented by its UK parent). few takers to date. The new offerings tend to be strong
on workflow and are component-based, promising much
At the same time, a potential heavyweight was faster time to market for new products, improved flexibility,
encroaching. This was SAP. A development with four and a customer-centric view. They are .Net or Java-based;
smallish German banks started to attract attention within they are increasingly using third party components in areas
the German giant and a strategic decision was made to turn such as customer hub, business process management
the system into a commercial offering. This became BCA. A (BPM) and workflow. However, understandably, they often
project then commenced to build a high-end retail offering, lack the breadth and depth of, say, a T24 or Flexcube.
with Deutsche Postbank becoming the main development

Universal Banking Systems Market Report | 7

There are still plenty of banks that replace one back
office system with another, with good reasons for doing so. Some countries have remained traditionally very
Those reasons might be to do with cost of maintenance, closed to outside suppliers. The US and Russia are prime
obsolete technology, poor service from the supplier, examples, so too some Western European countries such as
outgrowing the systems (due to volumes and/or breadth Italy. They have been largely served by domestic suppliers
of business), lack of flexibility, and inability to cope with and the efforts of outsiders to break in have mostly failed.
new regulations. Some banks are pushed into selections Nevertheless, the US, in particular, might be finally opening
because their suppliers have decided to cease support up, with notable wins for Infosys and TCS, while Temenos
for their systems (perhaps following a takeover) or are too has taken an acquisition route.
aggressive in trying to enforce an upgrade. Some banks
bought systems on fixed period licences (often ten years), There have been new entrants on the banking side
so as the moment of renewal nears, they might look at over the years, such as ING Direct and equivalents from the
alternatives. Often the decisions are to replace multiple likes of Rabobank and ICICI Bank. The new entities were
systems with a single platform. A centralisation dimension based on low overheads and simple, attractive products.
has been common in developing countries. For instance, in early 2006, Rabobank launched in New
Zealand, offering a savings product with an interest rate of
There has also been a lot of activity linked to Islamic 7.6 per cent. The systems ran out of a hosted data centre
banking, leading to systems decisions for start-ups, for in Amsterdam (which also supported the bank’s direct
full converts or for conventional banks seeking to provide entities in Ireland and Belgium) and it started with a mere
Islamic products. Path Solutions has been the leader in the 14 people in Wellington.
Islamic banking space, although plenty of other suppliers
have sought to adapt their systems, with mixed results. Competition has also heightened from existing banks
moving cross-border (such as the Australians into South-
Competition is the most likely reason for a bank to set East Asia and the South Africans into the rest of the
about transformation. The country that constitutes a text African continent), although there has been retrenchment
book example of the impact of new competitors is India, as well since the financial crisis. Start-ups have appeared,
where deregulation a number of years ago let out a new such as in the UK, where Metro Bank, Tesco Bank, Virgin
breed of bank which started to swallow up large swathes Money, and Sainsbury’s Bank have been followed by
of profitable customers, forcing the existing, lumbering subsequent waves, with others to come. More structurally,
giants to overhaul all of their systems. There have been banks are under attack from a vast array of specialists,
more large-scale system selections in this country over the from the giants of Paypal and Apple, to fast moving, low-
last decade or so than anywhere else. cost specialists. It is increasingly common for speakers at
events to show slides of the front pages of banks’ websites
The high-end retail sector remains under-populated with and then overlay these with the many logos of would-be
offerings and – perhaps no coincidence – it produces few core competitors.
package selections each year. Nevertheless, a few big banks
took the plunge pre-crisis, such as Deutsche Postbank with While the core banking system sector has been much
SAP, and State Bank of India and Bank of China with the FNS- quieter post-financial crisis than pre (particularly with a falling
derived Bancs system, which is now owned by TCS. Oracle has away of the large transformation projects that the likes of
been trying of late to bring to market a high-end retail system, Nationwide, Standard Bank, ANZ and Commonwealth Bank
the Oracle Banking Platform (OBP), to complement Flexcube, of Australia kicked off ), there has been a lot of investment
with the first two sites being in Australia. around the core (perhaps, indeed, shrinking the core), with
much of this enforced (compliance and regulation) or, of late,
That TCS acquisition of FNS was interesting, in that it for digital banking.
married a core system supplier with a services heavyweight
with huge R&D and delivery capabilities. The resultant There is still reasonable core banking activity, with
orders and projects suggested this had been favourably at long last a pick-up in 2014, as shown in the industry’s
received by banks. Prior to the TCS/FNS coming together, annual barometer, the IBS Sales League Table. In parallel,
another large formerly neutral company, Oracle, came off some of the large-scale projects across the world rumbled
the fence, taking what became a majority stake in I-flex on and finally saw cutovers. This puts pressure on other
Solutions (now Oracle Financial Services Software). banks that have stood still and, indeed, some of the old

8 Universal Banking Systems Market Report |

infrastructures are ever more fragile, reflected in high- SaaS for core banking might be taking off in the
profile outages and resultant hefty fines. Moreover, for challenger sector, but a number of obstacles prevent its
all the investment around the core, there is only so much wider adoption across the industry. Security tops the
that can be done to become more flexible, reduce costs, reasons why firms don’t use SaaS for banking-specific
and provide a real-time, rich customer experience without applications. One of the classic worries is: “Do we know
addressing the heart of the bank. where the data is?”. Another barrier is that moving to
cloud can be more complex for larger organisations. If
you are a big bank and you want to move anything, the
Dawn of the Cloud Banking regime migration from A to B is a massive thing. If you are small,
your customers are in the hundreds of thousands; big
Five years ago, core banking systems in the cloud were banks have millions.
almost unheard of. While the financial sector is no stranger Therefore, moving core banking architecture is a
to public cloud – which it has long-used for support multi year and expensive programme. It’s integration
functions such as procurement and HR – core systems rather than transformation - the more transformation
were omitted due to security fears and regulatory issues. required, the longer and more expensive it is. In addition,
standarisation can be an issue for bigger banks: the larger
But this is starting to change, in part fuelled by new the bank, the more ‘unique’ it is. A large bank services every
guidance announced by regulators such as the Financial single segment in the market. When you look at what they
Conduct Authority (FCA). This encourages the use of do and how they do it, they are division-based. Multiple
Software as a Service (SaaS) for core banking to remove the stake holders have to align and that’s really difficult.
barriers of entry for challenger firms in the market. Among
its benefits, it allows new entrants to build and scale their Due to technology adoption over a long period, larger
offerings rapidly. For minimal capital expenditure, cloud banks are held back by what they implemented previously.
allows challenger banks to compete with bigger rivals – This means creating a “generic service that everyone
without being held back by clunky legacy infrastructure. standardises on” is difficult. Therefore, there comes a point
where the concept of SaaS stops at a certain level, in terms
With this in mind, larger financial organisations are of how close you get to the customer.
realising that it could be the answer to boosting ongoing There is also the difficulty of getting a sponsor at
digital transformation efforts. This is seeing them start to boardroom level. This is on top of the argument that
actively look at which of their core systems could benefit banks are too busy with regulation and compliance to
from cloud platforms. SaaS’ advantages include lower think about innovation and modernisation. At the same
total cost of ownership, automatic and more frequent time, however, regulation can drive transformation, with
upgrades managed by the primary service provider, and forward thinking digital banks believing that modernising
open API standards to plug in ancillary systems with their systems and processes is necessary to comply with
lower integration costs. These benefits enable speed to regulatory change. If you are a large bank and have a big IT
market and flexibility. A characteristic of SaaS is, it’s highly team using legacy systems, they’ve invested a lot of time
configurable, so applications are very flexible. This allows to become experts in those, so the change management
banks to go live in the space of a few weeks or months. side can be difficult. A new set of knowledge is required,
and for some people, that change will be threatening.
Cloud is ideal for accelerating the launch of a new Some companies have forward thinking leadership and
business and is especially popular in areas where know that 10 years down the line, this will be an existential
regulators are granting more licences, including the threat.
UK. Another driver of SaaS is the disposal and splitting
up of banks , such as Lloyds TSB. In addition, cloud is However, the instruction for change needs to come
an attractive prospect for organisations entering new from top leadership. You never want to be the first one to
markets that are wishing to try a fresh approach rather adopt a new piece of software or web service as you are
than relying on existing legacy technology. doing something unproven. Banking is risk averse at the
core, while needing to be innovative. You need to be agile,
Overall, SaaS offers the most advantages for banks but at the same time you can’t do something stupid.
starting from scratch. If you are starting today, with no
customers, cloud offers speed, low cost and flexibility. Despite the obstacles, modernisation is “certainly

Universal Banking Systems Market Report | 9

happening. We have heard banks start to say, ‘it must be delivery model enabled by its UK datacentres.
cloud first’. However, at the very low end, cost outweighs
all concerns. The bigger the bank, the more resistance Atom is a new entrant with no legacy and a clear
there is for the transition. vision about what they want to do. This will become more
common as the drive towards open banking APIs happens.
And banks’ caution is understandable: if a firm such
as Royal Bank of Scotland (RBS) is not able to process Meanwhile, OakNorth is another UK challenger bank.
payments for a few days, it has a ripple effect; not just for It provides loans to small firms, although it also has
the bank, but the whole economy. Therefore It is unlikely regulatory approval to accept deposits and offer saving
big systemic banks will be moving core systems to cloud products. In a bid to get to market quickly and ensure
any time soon. flexibility, the startup is using Mambu’s SaaS banking
platform. OakNorth came to Mambu having discussed
With this in mind, agrees big firms will be slower its needs with traditional vendors but wanting to try a
to move to cloud. However, these banks are looking at different approach. They wanted to be faster and more
ways to adopt SaaS while avoiding organisational risk, nimble than traditional banks.
by developing a proof point internally before rolling the
technology out further. The traditional guys know they Challenger banks are also increasingly implementing
need to use this technology and think, what’s the best SaaS business intelligence (BI) solutions to manage their
way to get involved? So they look at which business line growth. Bank BI offers this type of solution to financial
can be used. organisations by integrating Mambu’s platform. The firm’s
CEO, Graham Goble, explains: “Mambu has an architected
Second tier banks such as the Co-operative Bank – API interface that we can integrate to. It’s running in
which are at risk from big institutions with scale as well Amazon [cloud] and we can put it into our BI system.” As a
as agile digital challengers – could benefit from moving result of using this method, the bank doesn’t need to run
core banking to cloud. They are looking at how they can any data on premises on a server. “It’s a process we can
innovate, so there’s an imperative for this type of bank run for them; it’s the best of both worlds. If you are a small
to be considering whether they can push things out to bank, this is worth its weight in gold because expenditure
cloud. And from a scale and systematic importance point is much lower.”
of view, it’s much more viable for them to do that.

Challenger Banks
Cloud’s flexibility also allows firms to evolve over time.
Even some challenger banks have adjusted their approach
to cloud as they grow, to become more personalised.
A classic example is Metro Bank, set up in 2010, which
outsourced its entire IT operations and using an external
core banking platform. However, they have moved away
from that now, bringing control of the platform in house.

Another such example is the digital only venture, Atom

Bank, which offers an app supported by FIS’ core systems.
The bank wanted an engine that sits in the background
on a robust and functionally rich platform. To enable this,
FIS provides and manages a fully integrated banking and
payments platform for Atom, through an outsourced

10 Universal Banking Systems Market Report |

Supplier performance in 2017
The core banking system suppliers’ sales performance approach starting with one process, one product, one
in 2017 revealed one clear trend – technology investment function at a time while maintaining the overarching
and focus by banks has matured over the years with focus of building a customer oriented digital
many incumbents looking beyond regular core banking infrastructure. The weapon of choice in this strategy
upgrades / replacements and investing more towards are APIs which are being used by many of the banks as
strengthening their digital capabilities. Many of the larger the central mechanism for providing integration and
banking groups such as Citi, J. P. Morgan, Morgan Stanley, the necessary agility layer between new and legacy
US Bancorp, HSBC, Deutsche Bank, etc. have set aside systems. This allows banks to quickly plug applications,
dedicated funds in the range of $2 - $4 billion for digital data sources and devices into their application networks
platforms and technology innovations. and leverage valuable customer data residing within
The banking technology system architecture has legacy systems. However, a word of caution here is
evolved and is becoming increasingly modular and API that APIs can only offer a short-term solution to banks,
ready. This allows banks to pick and choose modules especially those using Cobol based mainframe systems.
instead of carrying out a complete overhaul of its banking These systems are already facing shortage of skillsets
systems. For many of the banks across the globe, the core for Cobol based system with most already retired. The
banking systems currently in use are as old as 30 years short supply of Cobol programmers also makes the
with heavy customization, which make upgrading their maintenance of these systems an expensive affair for
core banking system is a daunting task due to cost and banks.
manpower involved. The recent TSB Bank debacle was a
prime example of how badly a complete core banking Another strategy that is more prevalent amongst
system overhaul could go wrong. The TSB Bank’s transition larger banks is to build a separate digital only bank which
from its legacy core banking system to a modern system can cater to the digital savvy customers. Example of this
has so far cost nearly $100 million, and the migration is far approach is seen across the globe – JP Morgan with its
from complete. mobile banking platform Finn in the US, Santander with
its digital only bank Openbank in Europe, Standard
Most industry experts are averse to the idea of a Chartered with a retail digital only bank in Africa, DBS
complete overhaul and instead recommend a piecemeal with online bank Digibank in India and Commercial
Bank of Dubai with CBD Now in the UAE.
Universal Banking System Sales Volume (2013-17)

172 With the above trends in play, it was no surprise

154 150 then that the volume of universal banking system
132 133
sales dropped in 2017 while digital banking and other
specialist system sales grew during the year. Temenos
T24 Core Banking continued its dominance in the
universal banking category besting its last year’s tally
of 43 deals by clocking 45 new customer deals in 2017.
The runner up this year was TCS BaNCS who also saw
2013 2014 2015 2016 2017 an improvement in its global new customer deals by
recording 18 deals against 17 deals in 2016. Edgeverve’s
Finacle Universal Banking Solution, which shared last
year’s runners up spot with TCS, witnessed a drop in
the number of customer wins reporting 15 global deals
compared to 17 in 2016.

Universal Banking Systems Market Report | 11

IBSI Annual Universal Banking Systems SLT 2018
# Product Supplier New-name customers signed in 2017 (Previous years in brackets, with most recent first)
1 Temenos T24 Core Ba nki ng Temenos 45 (43,34, 37, 35, 34, 27, 38, 40, 40, 44, 40, 32, 28, 24, 32, 36, 42, 34, 33, 19, 15, 10, 29, 7, 9)
2 TCS Ba NCS TCS Fi na nci a l Sol uti ons 18+ (17+, 11, 8+ ,8, 9+, 13+, 13+, 17+, 23, 31, 25, 14, 8 , 6*, 9, 10, 10, 6, 8, 6, 9, 5)
3 Fi na cl e Uni vers a l Ba nki ng Sol uti on EdgeVerve (Infos ys Fi na cl e) 15+ (17+, 16, 9, 9, 14+, 12+, 8+, 14+, 14, 13, 3*, 13, 14, 9, 8, 11, 9, 2)
4 i MAL Pa th Sol uti ons 13 (9, 4, 4 ,10, 11, 3, 4, 13, 11, 14, 5, 5 , 3)
5 SAP Tra ns a cti ona l Ba nki ng SAP 10
6 ICS BANKS® & ICS BANKS® ISLAMIC ICSFS 7 (9, 3, 0, 5, 4, 5, 5, 8, 6, 10, 11)
7 Sopra Ba nki ng Pl a tform Sopra Ba nki ng Softwa re 6 (10, 4, 2 ,2, 5, 2, 7, 3, 4, 3, 7, 3, 5, 2, 5, 1, 1, 3)
8 Phoeni x Intl . Fi na s tra 5
10 Fus i onba nki ng Es s ence Fi na s tra 4 (5, 4, 3 ,2, 2, 4, 6, 1, 2)
11 Ca pi ta l Ba nker Ca pi ta l Ba nki ng Sol uti ons 3 (0*, 1, 2 ,2, 3, 4, 3)
12 COBIS Rel a ti ona l Ba nki ng Cobi s corp 3 (9, 0, 0 ,3, 1, 1, 2)
13 Sopra Ba nki ng Ampl i tude Sopra Ba nki ng Softwa re 3 (13, 11, 5 ,3, 3, 5, 5, 3, 6, 7, 9, 3, 7, 12, 9)
14 Cyberba nk Core Techni s ys 2 (0*, 0, 0 ,1*, 1*)
15 e-IBS Da ta pro 2 (5, 3, 6 ,7, 1, 2, 8, 6)
16 ICBS BML Is ti s ha ra t 2 (1, 4, 1 ,3, 1, 3, 3, 6, 6, 5, 5, 3, 4, 3, 2, 3, 5, 3, 4)
17 OBS Di e Softwa re 2
18 SAB AT SAB Group 2 (5, 2, 2 ,8, 7, 2, 2, 6, 2, 7, 6, 8)
19 Autoba nker II Autos oft Dyna mi cs 1 (0*, 0, 1 ,2, 3, 1, 1, 0, 0, 0, 0, 1, 2, 1, 1)
20 Mercury FIS 1 (1)
21 PowerBa nker Ca pi ta l Ba nki ng Sol uti ons 1
22 Ba nk 21 Century Invers i a 0+ (5+, 11, 10,14,12,12,18,11,10,12,15)
23 Fl exs oft Fl exs oft 0+ (0*, 1)
24 Hori zon FIS 0+ (3+)
25 IBS FIS 0+ (1+)
26 Col vi r Ba nki ng Sys tem (CBS) Col vi r Softwa re Sol uti ons 0 (0, 3, 1 ,2, 2, 5)
27 Promos oft FS Exi ctos 0 (1, 4, 4 ,1, 0, 1, 4, 2, 3, 4 ,5 ,2)
28 Aba nks Grupo ASI 0* (5)
29 bApO/Antegra BI As s eco SEE 0* (0*, 0, 1 ,0, 0, 2, 2, 1)
30 Ethi x Interna ti ona l Turnkey Sys tems (ITS) 0* (4, 0*, 5 ,1, 4, 3)
31 Fl excube Ora cl e FSS 0* (0*, 28, 27, 15, 17+, 28, 32, 33+, 39+, 20**, 43, 37, 36)
32 Fl extera /Di a s oft FA# Di a s oft 0* (2+, 1, 1 ,1)
33 Inter-fa ce Intertech 0* (2, 3)
34 NovoDoba ABBA 0* (1, 2)
35 PUB 2000 As s eco SEE 0* (0*, 3, 4 ,0, 2, 0, 1, 2, 3, 7)

12 Universal Banking Systems Market Report |

• Temenos was founded in November 1993; operation
initially set up as a UK-based company, Electronic
Banking Systems (EBS)
Company • T24 Core Banking is one of the best selling universal
Overview banking systems
• Strategic partnership signed with Metavante in
March 2007; ended in 2009 when Metavante was
acquired by FIS

HQ: Geneva, Switzerland • Supports wide range of databases including Oracle,

jBase, Microsoft SQL server, DB2 and iSeries
Ownership: Public
• Supports Unix, Linux, System Z and Windows
Founded: 1993 (server); any client server supporting Internet
Explorer or Firefox (client)
# Staff: 4,945+ • Key functionalities supported: Current and savings
Key Clients: National Bank of account, deposits, loans, nostro and Vostro account
Kuwait, UBS, JP Morgan Chase, management, statutory reporting, payments, CD,
Bank of England, Credit Suisse futures, FX, MM, equities, FI, asset allocation,
Private Banking, Saudi Hollandi securities modelling, cash management, import and
Bank export letters of credit and guarantees

• Broad, deep functionality, surrounded by range of

other applications; adapted for international markets
Key • Technology partners - IBM, HP, Microsoft and Oracle
Highlights • Majority of customers in Western Europe and Africa.
In 2017, Temenos acquired Rubik Financial Limited
to gain foothold in Australian market
• Strategic focus continues to be Tier 1 and Tier 2
banks with UK and US as priority markets.
Temenos Core Banking
Temenos’ broad flagship offering, T24 (now rebranded as Temenos Core Banking), has gained more than 600 sites across the globe.
These are typically universal in nature, for tier three and four banks, or for departmental and/or international operational use by
larger banks.
The supplier has added complementary offerings around the core, largely through acquisitions, including that of Luxembourg-
based Odyssey and its portfolio management systems. It has also acquired a few companies to gain old user bases, which it has
then tried to migrate to T24, with mixed results. One of the more recent ones was in February 2017, when Temenos acquired Rubik
Financial Ltd. for USD 50Mn via a scheme of Arrangement.
In early 2016, Temenos rebranded all its products and offerings. The rebrand saw Temenos simplify and renew all its product
names including T24, to ‘Temenos Core Banking’. However, the underlying products and their functionality have remained the

Origins and evolution

T24 started as a system for corporate banking, built in the mid- was followed by steep growth, in terms of sales, revenue,
1980s by a UK-based company, Electronic Banking Systems headcount, global presence and profile. There were certainly
(EBS). The developer was Ernst Hennche, who had headed some rocky times along the way, including cashflow problems
an in-house development at Citibank to build a core system, and failed implementations. Grandiose ambitions didn’t
dubbed Cosmos, for international operations. The EBS system always come to fruition but, overall, it was a remarkable
was launched as Globus and was initially developed for the Pick turnaround, with Temenos becoming one of the two leading
operating system on Prime hardware. It was launched in 1988 selling core banking system providers over the next two
and a version for Unix followed soon after. decades (alongside I-flex Solutions, now Oracle FSS, with
By the middle of 1991, there were only 15 users of the Flexcube), a position that it retains today.
system, mostly in continental Europe plus a handful in Nigeria The company quickly became over-stretched, after almost
won via a local distributor. At this stage EBS did not have a user doubling its user base in 1994 (it had 29 new-name wins) but
in its domestic UK market. the ambitious and charismatic Koukis was often able to win
EBS changed hands, residing for a short while with a Swiss round the customers. There was a recapitalisation in 1995,
company called COS AG (which had partnered with EBS), which eased the financial issues. Meanwhile, the company put
before the business was bought by George Koukis. He’d made a lot of investment into R&D, so that the system became ever
his money in reseller businesses in Asia Pacific and was looking broader, often with joint development work with customers.
at the core banking systems market when he came across the A Chennai-based development centre was added and grew
opportunity to buy the Globus business from its struggling quickly.
parent. Temenos floated on the Swiss Stock Exchange in 2001 and,
The arrival of Koukis came in November 1993 and as usual, didn’t do things by halves. There was a steep fall in

Universal Banking Systems Market Report | 523

company details
Head Office: 2 Rue de l’Ecole-de-Chimie, CH-1205 Geneva, Switzerland.
Tel: +41 22 708 1150.
Other Offices: Australia, Bangladesh, Belgium, Canada (2), China, Costa Rica, Czech Republic, Ecuador,
Egypt, France (3), Germany (2), Greece, Hong Kong, India (4), Indonesia, Japan, Kazakhstan, Kenya, Lebanon,
Luxembourg, Malaysia, Mexico, Morocco, Netherlands, Pakistan, Philippines, Romania, Russia, Saudi Arabia,
Singapore, South Africa, Spain, Switzerland (2), Taiwan, Thailand, UAE, UK (4), US (6), Vietnam.
Founded: Temenos was founded in November 1993. The operation was initially set up as Electronic Banking
Systems in 1984.
Ownership: A public listed company on the SWX Swiss Stock Exchange.
Number of Staff: 4,945+
Financials: For the year-ended 31st December 2017, Temenos had EBIT of $223.5 million on revenues of
$736.1 million.

the share price, and some substantial losses. Rumours of a that large software organisations face today in terms of
sale of the company circulated but these were always denied dealing with vast amount of legacy code they’ve built
by Koukis. over the years. The challenges and solutions, whether
A lot of Temenos’ sales success was – and to a degree still it be the banking or telecoms sector, are not dissimilar,’
is – on the back of distributors, and it bought a few of these Andreades had stated.
down the years. It acquired its Malaysian distributor in 2002, it A short-lived but intriguing twist came during Dubois’
did the same in Latin America with the Globus distributor part time at the helm, in the first half of 2012. Temenos and Misys
of Hennche’s company, Ecuador-based Fisa Systems, then it (now Finastra) went public on merger discussions in February,
did the same in Russia, resulting in a joint venture company in sparking share volatility and much debate. Any form of merger
which Temenos took a 51 per cent stake. would have thrown up a number of immediate questions.
The company went through several periods of significant Temenos had aggressively gone after the ageing user bases
corporate upheaval, although things have been much calmer of Misys’ Midas and Equation systems, with limited success.
in the last few years. This followed a tenure of one year for Meanwhile, Misys was positioning its much newer Bankfusion
a new CEO, Guy Dubois. It was unusual for Temenos to go solution as the upgrade route for these user bases, as well as
outside the company for any senior manager, let alone CEO. touting it as the next generation core banking system, with
He moved from CEO at mobile communications firm, Mach Temenos’ customers in its sights.
Group. He took the reins of Temenos on 1st July 2011. Andreas The two companies had decided on the all-share merger,
Andreades, Temenos’ CEO, became chairman, while Koukis senior management positions, listing, head office etc. but the
relinquished this position and took up a role of non-executive merger did not come to pass. Venture capital firms promptly
director. started a bidding war for Misys with cash offers (and, notably,
It was interesting with hindsight to look at the reasons not for Temenos). Given the Temenos deal would have been
cited for Dubois’ appointment (given the u-turn a year later). purely a share swap, the cash aspect was attractive. Temenos
There was a need, it was stated, for a CEO experienced in claimed to remain interested for a short while but then
‘much bigger operations’. Although Dubois lacked banking dropped out of the running. Vista Equity Partners eventually
software experience, he ‘understands the challenges acquired Misys.

524 Universal Banking Systems Market Report |

After several poor quarters, in early July 2012 Dubois resigned. Temenos cited ‘personal reasons’. The old guard was back in
charge, with CFO, David Arnott, as the new CEO. The CFO role was filled by Max Chuard, another Temenos veteran and previously
director of corporate finance and investor relations. Andreades switched from group chairman to executive chairman.This brought
a much needed period of stability, in terms of the company’s financials, share price and strategy.
Since then, Temenos has continued to chart a positive growth in terms of its products, revenue, customers and geographies.
2014 was one of the most profitable years for the company, with a marked improvement in its Americas revenues. In September
2016, in line with its growth strategy in the US market, the company opened a new and expanded North America HQ in Malvern,
Pennsylvania. The move was based on market research conducted by the company which shows that the US represented 40% of
the company’s addressable market.
2017 proved to be a good year forTemenos, with a 22% annual growth in software licensing. Of this, around 10% is derived from
SaaS and subscription model. As per Temenos, Tier 1 and 2 banks contributed about 59% of the total software licensing. Europe
continues to beTemenos’prime geography for sales, followed by the Americas and the Asia Pacific. In comparison, Middle East and
Africa is a growing area for the company.
In May 2017, the company also completed the acquisition of Rubik Financial Ltd (originally announced in February 2017), a
leading software provider to the financial services sector in Australia. Founded in 2007, Rubik was a provider of banking, wealth
management and mortgage broking solutions, primarily in Australia and internationally across Asia and the Middle East, with over
900 clients. With the acquisition, Temenos hopes to leverage Rubik’s presence in the Australian market and accelerate growth
across its key target segments including wealth, core and digital banking and fund administration.
In the beginning of 2018, Temenos had proposed an acquisition of UK technology company Fidessa in a £1.4 billion deal.
Fidessa provides equity and derivatives trading tools and market data for investment banks, brokers and fund managers. The
acquisition was expected to helpTemenos leverage Fidessa’s dominance in capital markets. However, Fidessa was finally acquired
by Ion Investment Group for £1.5 billion.

Technology and Architecture Evolution

The original Globus was built using the Universe database and Globus/T24 was tied to the Universe database for a long
development environment from Westboro, Massachusetts- while. The first step to today’s T24 came with Temenos’ move
based VMark Software. This allowed the early shift from the Pick off the proprietary environment and database, a project that
operating system to Unix, as it brought a degree of platform finally started, after a few false dawns, in 1999. As with most
independence. things to do with Temenos, it wasn’t straightforward.
A Windows NT version of Globus was made feasible by One reason cited for the move was reliance on a single
the arrival of NT support within the VMark environment. After technology supplier and, in fact, not long after, the Universe
some teething trouble, a demonstration version was shown at business was acquired by Informix. There were also
a user group meeting in March 1997, with a pilot supposedly performance issues with Universe as the supplier pushed
signed up in the form of existing user, Conseil de l’Europe in Globus into larger sites. The environment was fairly well
Paris. In fact, the dates shifted, with Globus on NT finally made regarded from a technical point of view. In theory there was
available at the start of 1998. The NT and Unix versions had no limit to the number of end-users that could be supported
identical functionality and business code. but there were issues with large files. ‘It is very I/O intensive,’
In 1997, a full graphical user interface was delivered and said one Globus user. There was also the question of market
then an NT-based client element. The latter was written in perception, with the platform sometimes proving a problem
Visual Basic and allowed users to design menus and screens, for the supplier when bidding with Globus.
and do enquiries, via drag and drop. The application code was It is believed that the migration project was particularly
unchanged. Reflecting the use of the system in larger sites, in brought into focus by interest from Credit Suisse Private Bank.
1997 there was also the addition of multi-threading support The bank took Globus for its international branches. However,
for improved end-of-day processing. at the head office level, it seemed the bank was worried about

Universal Banking Systems Market Report | 525

the ability of the Universe-based Globus to handle its volumes. separate company after the takeover, while also providing
An evaluation commenced, with Temenos staff on site at the Temenos with enabling technology.
bank, but it came to nothing, seemingly being replaced by a The version of the system running with the jBase database
project involving Swiss supplier, TKS-Teknosoft (now part of was now to be the standard version of Globus. By mid-2001 it
TCS). was not yet live but there were a couple of implementations,
Nevertheless, Temenos pressed on with the migration of one of which was at Credit Suisse Private Bank, which had put
Globus. In October 1999, it acquired a US company, jBase the Universe version of Globus into a number of sites including
Software. Based in Portland, Oregon, jBase specialised Singapore, Hong Kong and the Bahamas, and then took the
in technology to allow companies to migrate Pick-based jBase version for Madrid and Guernsey. An Oracle version was
applications to Unix and Windows, initially through a supposedly taken by Kumari Bank and Machhapuchchhre
conversion from Basic to C. It continued to operate as a Bank in Nepal, plus a bank in London.

Globus becomes T24

The next step, T24, was a substantial revamp of Globus. The In total, there were apparently 14T24 implementations under
supplier hailed the new version as a non-stop, 24x7 solution way. General availability had supposedly come in April 2004.
which removed the need for end-of-day processing. It was The three pilots were moving to the jBase version; of the
presented to existing Globus users as the logical upgrade path, others, around half had apparently opted for Oracle.
and would replace Globus as the supplier targetted prospective In terms of the Oracle version, the turn of events at ING
new clients. was worrying. By February 2004, it had become clear that the
Much of the direction stemmed from a deal at ING in bank’s major implementation had changed in scope, with the
May 2002 and, with a corporate banking slant, it would have emphasis switching to a Singapore hub and replacement of
seen one version of Globus for Europe, another for Asia and the bank’s old Internet-derived Atlas back office system. As
another for the Americas to support all countries except the such, the bank was no longer intending to install the system
Netherlands, Belgium and Germany.The project was intended for Western Europe, at least in the short and medium-term.
to take four years. Temenos was faced with making Globus Although this was a blow forTemenos, it remained a substantial
more scalable and with solving a number of issues regarding project and was still described by the bank as strategic.
end-of-day performance. Despite the change of tack, ING’s general manager for IT at
T24 was directly derived from Globus and, as such, the time, Johan De Meyer, said that the centralised processing
represented version 14 of the system, rather than a truly functionality promised by Temenos looked to be in place and
new offering. The architecture was substantially altered, and workable. The bank had decided to go with the jBase version
this was one of the supplier’s arguments for the rebranding. rather than Oracle seemingly due to concerns about the
The end-of-day batch process was replaced by a ‘Close of performance of the latter.
Business’function, which provides a cut-off point after which At the start of 2005 it was announced that the ING project
all transactions are attributed to the following day.To improve had been cancelled. The bank proposed to revert to its
reliability, Temenos sought to shift from a client-server model existing systems. A joint statement cited ‘internal reasons’
to an n-tier architecture. Via a browser, it claimed the system for the cancellation of its project; no one from the bank would
could be scaled horizontally, and could support multiple comment further. Temenos general manager, Jean-Michel
application servers. Hilsenkopf, said the Oracle version was not an issue, with
All Globus users operating on Universe were expected recent benchmarks having been‘in line with the requirements
to migrate to jBase, and Temenos set a deadline for this of of the bank’. At the same time, he admitted that another
the fourth quarter 2005. Temenos said it would offer the project, at Barclays Asset Management, was ‘on hold’ – again
conversion ‘completely free of charge’ to current clients. he blamed a revised strategy by the bank.
There was certainly some confusion about which banks Generally, banks taking Globus/T24 for new technology
had, and had not, signed for T24. However, by mid-2004, platforms, whether database or operating system, had
Temenos seemed to have sorted out its messages. At this problems. Credit Suisse, MKB in Hungary and Bank Thai
stage, there were three early adopters under implementation had issues and this meant others were reluctant to take new
from the existing user base – Schroders in Zurich, Hatton components being promised within T24. MKB’s deputy chief
National Bank in Sri Lanka, and one other ‘major’ customer. executive, Csilla Bolla, believed that the theory behindT24 was

526 Universal Banking Systems Market Report |

correct, with this a common reaction from users. ‘In business Hatton National Bank was clearly a totally different type of
terms, we do see opportunities,’ she said. ‘We have quite a lot bank, focusing not on high net-worth individuals but on the Sri
of problems with the length of the end-of-day, even with our Lankan masses. It had totally different reasons for pilotingT24.
number of transactions.’ The bank’s progress with Globus since signing in 1999 had not
The sentiments were similar to those of Credit Suisse’s been smooth, to put it mildly, with lots of problems linking in
project head, Hans Deelen. He said he had no problem its branch network. It hoped thatT24 would overcome this but
with the ideas and concepts behind T24. Indeed, with the in 2007 it opted instead for Infosys’ Finacle.
bank using Globus for multiple operations, the centralised There is no doubt that the first year of release of T24 was
version might be a means of rationalising its infrastructure. a troubled one, for supplier and pilot users alike. It was not
‘Strategically, it is very interesting to us.’ However, there were until Release 5 that performance and quality issues looked
time-to-market and budgetary considerations. ‘It seems the to be under control. Koukis admitted that Temenos had tried
newer the version, the longer the implementation projects.’ to do too much too quickly, in terms of both technology and
Of the T24 pilots, Schroders had clear short-term goals functionality.
for the new release, as well as seeing potential long-term Among the remedial steps were advisory boards for retail,
benefits. The bank went live with Globus in Zurich in April private and Islamic banking. Temenos also said it would
2003 to replace Unisys’ Bancos. It had data warehouse and further tighten release procedures and have only one release
client correspondence systems which were now fed by the per year. There would be less customisation and an emphasis
‘XML Factory’component of Globus, which Schroders’deputy on a ‘model bank’ version of T24 (the first time it had used this
CEO, Heinz Scheiwiller, felt was particularly powerful. On the term). For both performance and quality, the fact that R5 of
warehouse front, the XML approach meant a fresh load of data T24 seemed to be a marked improvement on R4 suggested
from Globus into the warehouse took 20 to 30 minutes. that Temenos was, indeed, addressing the problems. R5
Schroders decided to pilot T24 in part for specific particularly brought multi-threading capabilities.
functionality,withthenewreleasebringingenhancedsupport By June 2005, Temenos was claiming 40 T24 takers, with
for asset management, with a lot of this driven by Schroders 25 or so live. Schroders in Zurich was among those to have cut
itself. The bank was also hoping to gain benefits from the over, moving from R12.2 of Globus to R4 of T24 with jBase and
switch from full end-of-day processing to the reduced Close Sun Solaris. Vietnam-based Sacombank, after an eight month
of Business. The bank had never had a problem with the project, became the first to go live on R5, opting for Oracle.
end-of-day, said Scheiwiller, with this typically taking three Bank of Botswana went live with the jBase version to replace
hours. However, the batch processing was supervised until Misys’ Bankmaster. Bank Leumi in Switzerland also went
it had closed successfully, requiring one person to stay late live with the jBase version, to replace Misys’ Midas. Alubaf
each evening. The Close of Business should be shorter and International Bank in Tunis went live with jBase and IBM AIX
more resilient. If the Close of Business crashed, there would after a six month project, while Credit Suisse in Singapore had
in theory be no need to restore the database and restart done so as well. However, by no means all of these were live
from scratch. This change was described by Scheiwiller as with all elements.
a ‘massive technical enhancement’ and one that Schroders The experiences of another pioneer, Saudi Hollandi Bank,
planned to test very thoroughly. were also interesting. Core customer accounts and share
Restarting from the point of failure necessitated precise trading went live in January 2005, with payments in June, at
knowledge within the system of what records had been which time the roll-out started for the bank’s 40 branches. The
updated and which had not. He said the ability to run the Islamic module was part of subsequent phases. That module
system while the Close of Business was running was potentially had been fleshed out with Bank Al-Bilad and, according to
of interest in itself, if the bank decided to centralise processing Saudi Hollandi CIO, Hakam Abu-Zarour, covered six of Saudi
across multiple operations (the bank also had Globus in Hollandi’s nine Islamic banking products offered at the time.
London and Guernsey). ‘It is nice to know we can [support T24 clearly required considerable work at Saudi Hollandi,
multiple operations] if we want to.’He felt this capability might with tuning of the Close of Business a key part of this. The
be particularly useful if Schroders wanted to open operations Oracle version was initially very slow, said Abu-Zarour, but
in a new country, with the ability to establish a front office while a lot of work was done on this. By the time of the cutover, it
hooking into a remote back office, thereby reducing costs and was taking around three hours but, in one extreme case
accelerating the set-up. The 24x7 and browser capabilities of during testing, a change to the customer charge table saw
T24 would also provide a firm base when Schroders decided this become 25 to 28 hours. Users should plan to spend a fair
the time was right to provide direct, web-based access for amount of time tuning, he said. ‘Our biggest issue is always
clients, he felt. Scheiwiller foresaw doing this in two to three the Close of Business and how long it takes – it can go from
years time, using the browser support of T24 rather than three hours to ten hours to twelve hours.’
adopting a separate e-banking layer. Some of the bank’s problems were to do with

Universal Banking Systems Market Report | 527

customisation. For instance, the bank added some reports that the visit, which lasted about two and a half weeks, was
to the Close of Business but these adversely affected the not long enough and did not go into sufficient detail. ‘You
performance, so they were removed. On the upside, online need to ensure a good user specification and ensure that the
performance had been‘excellent’(at mid-June, it had 55 users other side understands how you work. The Model Bank team
on the system, with this to become 600 when the project was didn’t spend enough time and, I think, didn’t want to.’ Chow
complete). For payments, the bank did a benchmark with also felt that the team was not up-to-speed with UK market
60,000 transactions. The first time this was done, the Close of requirements.
Business took ten hours; after tuning, it was down to three. The problems became apparent when a first cut of
One unpleasant surprise for Saudi Hollandi were the the Model Bank solution was delivered to the bank in late
hardware requirements. The bank originally envisaged February/early March. Testing soon threw up gaps. There was
relatively small IBM machines but ended with two IBM p690s, a lot of discussion and arguments between the bank and the
with Oracle clustered across both and with six CPUs on each Chennai team. The emphasis from the supplier was on the
machine for the database and six on each forT24. One machine bank to adapt to the system, whereas the users’response was,
supported the share trading part of T24, the other modules ‘we’ve still got to deliver to the customers’. There were aspects
resided on the other machine. There were a number of other where it was felt that adapting would have a negative impact
lessons. Zarour advised banks to stick to the ‘Model Bank’ as on service. Chow felt the Chennai team was incentivised based
offered by the system – the moment you start to move away on the go-live date and so it wanted to preserve the vanilla
from this, complexities arise, he said. Reports and inquiries state of its T24 version. The response to the bank’s requests
should be optimised, as they can have a major impact on was often‘no, that can’t be done’but what was actually meant
performance, whether online or at close of business. was, ‘no, that can’t be done with the Model Bank version’.
One part of T24 which was not proven within the initial 25 In the end, the issues were sorted out and the bank went
or so live sites was centralised processing, which ING would live. It is likely that Temenos learnt as much from the project
have implemented. A few Globus users used their system for as the bank did – this was, after all, one of the first attempts
centralisation, including Dresdner Lateinamerika (prior to to take the Model Bank route. ‘The Model Bank was a bit of
being sold to UBS in 2005), AIB and EFG Bank (the latter as a disappointment, but I think they learnt a great deal,’ said
it had pursued an acquisition strategy over the previous few Chow. He felt that Temenos’ latest strategy, to come up with
years). By mid-2005, a number of multi-site Globus users different Model Banks for different types of institutions, such
were apparently considering replacing outlying systems with as private or Islamic banks, reflected such a realisation.
a centralised T24 (Mashreq Bank was suggested). Also on the In terms of the centralised support within T24, there was
way was support for SQL Server, with availability set for the a breakthrough in April 2007 when Schroders became the
second quarter of 2006, dependent on performance tests. first institution to centralise its IT infrastructure using T24 on
Jih Sun Commercial Bank in Taiwan, which had taken T24 on a multi-currency basis, so as it had envisaged. The core T24
a Microsoft platform, was suggested as a possible taker of the went live with a central hub configuration in Schroders’ new
SQL Server version. Private Banking Service Centre (PBSC) in Zurich, supporting
Some light was shed on the whole Model Bank concept its mainland UK, Guernsey and Swiss private banking
within a 2006 deal at Bank of East Asia in London, an early subsidiaries.This was an important breakthrough forTemenos,
recipient of such a supposed Model version, to replace Misys’ as full centralised processing had been such a cornerstone of
Midas. Under general manager in the UK, Joseph Chow, the the T24 overhaul.
bank set about implementing this. By now, Temenos was The system had been installed at the service centre on
pushing the Model Bank route as strategic, centred on a Sun Solaris servers and was fully operational across the three
largely pre-configured version of T24, supposedly based on entities, said Schroders’Scheiwiller. He reported that the Close
best practice. T24 was ‘very flexible’, said Chow, but this came of Business processing was running smoothly and quickly for
with a down-side in terms of set-up times and the potential for the three subsidiaries, completing in around one and a half
‘project creep’ if there was not strong project management hours. Schroders had been able to extend to London and
(incidentally, he felt Flexcube, which the bank had rejected Guernsey all the functionality it had originally built in Zurich.
at the shortlist stage, was more rigid than T24, so more of a One benefit was that the same reporting templates were used
standard package). for each subsidiary, with local market adaptations having
However, the Model Bank theory and reality were some been made by the bank where required. Scheiwiller believed
way apart. Temenos’Model Bank team was based in its centre that Schroders was the first T24 client to run on a centralised
in Chennai. The bank sent specifications on its operations to basis across at least two different base currencies, and three
this team in late 2005 and the Temenos team visited the bank different countries and legal entities.
shortly after for systems analysis. One of the lessons was With the system stable, Schroders planned to embark on

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three new projects withT24.The first was the addition of client with Deutsche Bank to build additional dynamic modelling
browser-based access via its website. The second was the and constraint management functionality into T24 to assist
introduction of a third party custodian element for securities. its portfolio managers. However, Scheiwiller confirmed that
This would allow clients, particularly institutional investors, Schroders was planning ‘to enhance the system a bit further.’
to keep the same reporting regime whilst maintaining a It had centralised a lot of its activities, such as customer
number of custodians. The third major task would enhance management, at the same time. It had apparently reduced
the management of portfolios.Temenos was already working costs in the UK by more than 50 per cent.

In the early days, functionality was often through joint products, gilts, repos, CDs, precious metals, and fiduciaries.
developments with customers. For instance, a letters of credit There is order management support from order entry through
module was added with Bank Handlowy in Luxembourg in 1992. execution to trade settlement.
A syndicated loans module followed in 1995 and then support for Portfolio management capabilities including asset
forward rate agreements (FRAs). A new release, G7, in mid-1996, allocation, securities modelling, rebalancing and cash
brought a module for interest rate swaps, support for past due management, with online and periodic client valuations.There
processing, and added management information capabilities. is performance reporting including whole portfolio returns,
Release G8 at the end of 1997 brought support for repos and instrument level returns and returns at a segmented level,
enhanced risk management. plus back office support for corporate actions and transfers
The development efforts saw the creation of product and processing of transactional and periodic fees.There is also
management groups to oversee particular areas from the support for intermediaries.
initial concept through to delivery. By the start of 2000, there Wholesale functionality includes treasury, across foreign
were groups for private banking (a multi-site deal signed with exchange, money markets, forward, FX and interest rate
Kredietbank in the third quarter of 1997 was important here), swaps, and FRAs. Front office treasury functions are also
trade finance (Dresdner Lateinamerika was a partner), futures supported, so too electronic banking. There is deal capture,
and options, financial risk management, and retail banking. blotter, position monitoring, limit monitoring, risk monitoring,
An asset management module was under development in and VaR calculations.
2005 and there had been a lot of work in the area of syndicated Corporate banking components including corporate cash
lending, within an over-running project at Caja Madrid (now management, commercial and syndicated loans, import
part of Bankia). and export letters of credit, clean/documentary collections,
Today, there is not a system as broad as T24. It is multi- incoming and outgoing clean payments and guarantees.
branch, multi-currency, multi-base currency, and multi- For payments, Temenos claims to have built a full engine,
lingual. It spans customer and counterparty management to compete with the likes of ACI and Fundtech, working with
with operational and analytical CRM.There is a general ledger, ABN Amro. By October 2014, ABN Amro was still not live but
plus support for current and savings accounts, deposits, Temenos was claiming another ‘large European bank’ as a
loans, nostro and vostro account management, cash and taker for what is now dubbed the Temenos Payments Suite
stock reconciliations, and statutory reporting.There are batch (TPS). Into 2015, there was still no cutover at ABN Amro but,
and real-time Swift interfaces, management reporting and with the European taker and another in Latin America, there
profitability analysis. was work to further enhance the functionality of TPS and it
Retail banking support includes administration of tills, was expected to become the standard payment engine within
local and foreign currency transactions, travellers’ cheques, future T24 sales, albeit still also positioned as a product in its
denomination control, cheques, sweeps, deposits, funds own right.
transfer, mortgages, personal loans, remittances, passbooks, Treasury and corporate banking is still an area of strength
signature verification, direct debits, ATM/POS links, and and plenty of deals have this emphasis. The successes here
mutual funds/unit trusts.There is off-line branch functionality have sometimes been to replace older treasury and corporate
where required. banking systems. Temenos gained an early replacement of
Private banking support includes coverage for multiple Misys’ Midas, for instance, in 2000 at Arab Malaysian Bank. A
client types such as advisory, execution only, managed or major deal which spanned both wholesale and treasury in that
discretionary, custody and external custody. T24 handles year was from Construction Bank of China.The global contract
equities, fixed income, funds, futures, options, structured was for Globus to be installed initially in Johannesburg to cover

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FX, MM, trade finance and securities. The following year, a usingtheT24modulesbutthisprovedchallengingandbeyond
notable win came at the aforementioned MKB, the Hungarian the scope of T24, said Njagi. Temenos also acknowledged that
ForeignTrade Bank.The bank was one of a clutch of users of the there was a gap and that it was in its interests to close this, he
Winter Partners-derived IBS-90 and, indeed, was the first to said, ‘so it worked out well’.
take it back in the first half of the 1990s. The hope for Temenos The Activebank platform seemed to have 85 per cent
was that, where one IBS-90 user had led, others might follow of what the bank needed. It was also felt to be faster to
but, as mentioned elsewhere, the bank had a difficult project. interface it with the back office than if a third party system
Other treasury-related deals at around this time came from had been chosen, and there was a clear roadmap for this, said
BRE in Poland and Nova Ljubljanska Banka in Slovenia. The Njagi. Commercial Bank of Africa was quite happy with its
latter used Bancs on the retail side but opted for a separate relationship withTemenos and was pleased not to have to deal
treasury solution. with two different vendors.
At the front-end for treasury, in mid-2001 Temenos The development and customisation started in April 2010,
acquired a small front office system supplier, Alphametrics. with the requirements specification completed in May.Testing
However, much more recently, the third party component and deployment followed, then the full interface. Commercial
that has contributed here was derived from the acquisition of Bank of Africa’s Tanzanian operation was intended to be
Financial Objects. brought online in March 2011. This operation was supported
Activebank Treasury was initially meant to go the way of by T24 in Kenya, as would be the case for subsequent
the Financial Objects’ other systems, IBIS and Activebank countries, with the aim of having as little hardware as possible
Retail, into oblivion. However Activebank Treasury became in the foreign operations. That two-way interface became
integrated with T24 and reborn as Treasury Trader. A key commercially available in Q4 2010.
customer is Commercial Bank of Africa, which acted as the For transaction banking as a whole, Temenos is keen to
pilot site for a bi-directional interface. The offering should be emphasise its capabilities, particularly since the arrival of the
suitable for the treasury front-end requirements of retail and new payments component. It would like to compete in the
universal banks, said Temenos’ treasury product manager, syndicated lending space against the specialist systems, so
David Helps, and it is mainly positioned for tier three and four too in the trade finance and cash management sectors, but
banks. As well as FX and MM, it covers vanilla derivatives and with the ability to use the system to support more than one of
structured products. these areas within a bank, thereby allowing a rationalisation of
ActivebankTreasury had a small number of customers and systems. And, after all, transaction banking is back in vogue
Temenos analysed its capabilities. It was built for Financial given its solid, fee-based nature.
Objects by a third party, Hal Hovland, who had built a number
of other such dealing front-ends.
From Commercial Bank of Africa’s perspective, having
selected T24 in July 2007 as an enterprise solution, one of the
gaps identified at the close of the project was for the front
office, said the bank’s assistant general manager, enterprise
programmes management, Eric Muriuki Njagi. Almost any
type of deal could be captured, but there was none of the
decision-making ahead of this, he said.
Commercial Bank of Africa is the largest private bank in
Kenya and had been broadening its activities, including into
the SME and mass affluent markets, as well as planning moves
into five countries, starting with Tanzania. It was seeking STP
for any deals, regardless of where they originate; workflow
management to control risk; the ability to view positions from
different perspectives; limit management; pre-trade analysis;
for this; and consistent accounting between the treasury
department and finance.
The initial aim, in early 2008, was to satisfy these needs

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Other applications
Temenos has built or bought a wide range of additional systems. taking the total to 42. Only two per cent of Temenos’ T24/
These include Insight for business intelligence and Insight Risk Globus clients had this solution, so there was felt to be plenty
intelligence for Basel II, regulatory/economic capital and risk of potential. That potential appeared to be being realised.
analysis. There is Temenos Financial Reporting (derived from an In 2009, there were 23 additional ARC sales and, with the
acquired French solution, Quetzal) and AML systems. acquired business intelligence offering, Insight, it contributed
A front-end layer, ARC, has featured heavily. It was initially ten per cent of total licences.
meant to span CRM and internet banking. With an initial ARC Internet Banking went live at Metro Bank in the UK
launch in mid-2006, ARC stood for ‘acquire, retain and cross- soon after this bank opened its doors for business in 2010. By
sell’. It was aimed at retail, universal and private banking users, this stage, Deutsche Bank was also live. For corporate banking,
bringing CRM-type support. An extension of ARC to replace Temenos added the ability to upload bulk payment files and
Temenos’old internet banking front-end followed soon after. work was done to enhance the trade finance front-end support
Kenya Commercial Bank, a notable signing for T24 in the as well.
second quarter of 2007, was an early taker of ARC CRM. Despite the bullishness, there seemed to be a disconnect
Previous early users of Temenos ‘e-Globus’, in 2000, had between the number of licences claimed for ARC and the
been BankBoston International in Miami for its Latin American relatively small number of live sites. Often it seemed that
private banking business; EFG Bank in Luxembourg; Lloyds ARC (as with other applications such as Insight and a risk
TSB in the Channel Islands, also in a private banking capacity; management offering, T-Risk) were bundled in with T24 but
and Allied Irish Bank’s treasury services operation in Dublin. were not the priority, so were only turned to after the main
By the end of the year, Lloyds TSB was live, initially with core system project was completed.
enquiry facilities and then for buying and selling stocks. AIB Moreover, by May 2012, it seemed Metro Bank was already
and EFG Bank were also live with enquiry facilities. Dresdner set to replace ARC Internet Banking. This was because it was
Lateinamerika followed, for Hamburg. BNG in the Netherlands not happy with the system’s performance, according to a
also set about implementing the internet layer, along with source at the annual Temenos Client Forum (TCF) event in
Globus as a whole, with a live date scheduled for 2001. Barcelona. The source claimed that ARC Internet Banking was
By 2005, the supplier’s internet banking solution was being to be replaced with the multi-channel banking offering from a
used by a number of customers. ‘Cheap and cheerful’, was UK-based vendor, Edge IPK.
how long-standing user, Ian Cookson, executive committee Temenos then acquired a mobile banking application, UK-
member, EFG Bank, described it in mid-2005 (the bank had based FE-Mobile, in May 2010. Founded in 2002, FE-Mobile
recently replaced it with a solution from Broadvision). At was a strategic partner of Temenos from 2007 up to the
this time, Temenos’ chief technology officer, Andre Loustau, acquisition. As well asTemenos, FE-Mobile had also partnered
promised a ‘technology refresh’ to embrace web services. with Misys. It claimed a number of users of its Securelink
ARC was essentially the next generation. The aim was to product including banks in Angola, Portugal, Tanzania, the
provide banks with full and integrated front-to-back office UK, Pakistan, and one each in West Africa and South America.
functionality. By the end of 2007,Temenos was claiming twelve ‘Some of them are just now getting to the point where they are
deals for ARC Internet Banking and ten for ARC CRM. ARC launching,’ said Phil Sorrell, the former co-founder and CEO
had ‘vastly exceeded our targets in terms of sales’, said group of FE-Mobile, who became business development director for
director, banking services, Mark Gunning, particularly for the mobile channels at Temenos (he left Temenos in 2013).
internet component. He admitted that there was‘nervousness’ Temenos committed to an investment programme in
within Temenos about the internet offering and the company FE-Mobile’s products. By mid-2011, Temenos was able to
had armed its sales staff with answers should objections demonstrate an ARC Mobile app on Microsoft’s smartphone
arise. This was because the offering provided access directly platform, as well as on Android and iPhone. The first bank to
into T24, with no separate channel layer in between, but in go live with what was now ARC Mobile was Unibank in Ghana
reality the concerns were unfounded. A key benefit was agility, in the first half of 2011. Ficohsa in Honduras, which had been
he said, with changes made in the back office immediately implementing T24 since 2008, also went live with ARC Mobile,
reflected in the internet front-end. before completing its core implementation, with ARC Mobile
Eleven additional ARC clients were added in Q2 2008, connected to its legacy solutions.

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Temenos then bought Edge IPK in 2012, the supplier that than ARC Internet Banking, said Burch. ‘It is more of a project
was replacing ARC at Metro Bank. Edge IPK’s product would on top of ARC Internet Banking, rather thanTemenos Connect
now be combined with the ARC front-end products to create Model Bank, although the architecture is the same asTemenos
Temenos Connect. Edge IPK brought a ‘user experience Connect.’ ARC Internet Banking would continue to support
platform’(UXP) – Edgeconnect – for developing multi-channel corporate banking at Metro Bank, while retail would move to
businessapplications.Edgeconnectwasclearlythefoundation Temenos Connect. ‘Other implementations will be easier,’ he
for Temenos’ combined offering, regardless of statements assured.
about taking the best of this and ARC. Edge IPK came with a As for other ARC Internet Banking takers, each roadmap
customer base of well-known financial institutions, among would be examined on a case-by-case basis, and should
them ABN Amro, Deutsche Bank, RBS and Zurich Financial they wish to remain on the existing system, Temenos
Services. would support them indefinitely. However, there would
So it was that Edgeconnect has come to form the basis be no extension of functionality. The expectation was
of the Temenos Connect offering, an omni-channel banking that most would choose to upgrade to Temenos Connect,
solution aimed at banks of all sizes and in all geographies. noted Burch.
‘With this offering, we can really compete in the European ARC Mobile, however, was a‘more complex issue’. It wasn’t
banking space, particularly in the sophisticated Scandinavian originally a Temenos product, as it came from FE-Mobile.
markets,’ observed Robert Burch, Temenos’ product director, ‘We are now offering the option of connecting ARC Mobile –
channels, at the time (he left Temenos in early 2014). ARC which is now called Temenos Connect Mobile – through the
wasn’t ‘really suitable’, he admitted. integration layer, so that the integration with a bank’s back-end
As well as supporting customer channels, Temenos systems is common with its internet banking. This means that
Connect is meant to be applicable internally, as the T24 you have to integrate only once, so it enforces consistency,’
browser replacement. The proof of concept for this had been Burch explained. ‘The presentation layer is different, so the
completed for the relationship manager tablet (iPad), as administration side of functionality will remain separate at the
well as the ‘mash-up on the services side for T24, [Odyssey- moment. And that gives a bank capability of working with all
derived] Triple A, Wealthmanager and [business intelligence] types of mobile phones.’ But for the developed markets that
Insight products’. The vendor used its TCF 2013 event to demo are interested only in smartphones, the Edgeconnect-based
these to its key customers and gather feedback, to prioritise Temenos Connect would be offered.
and identify ‘what we should be doing next’, said Burch. Their There are also the offerings of wealth management
input suggested that the priorities currently lay in relationship systems supplier, Odyssey Financial Technologies, which
management for wealth,T24 browser replacement, and teller was bought for $101.3 million in October 2010, Temenos’
application. largest acquisition to date. The Odyssey price tag included
On the external use, the development of a Model Bank for $20.3 million of debt and it appeared that the long-standing
Temenos Connect was underway.The first delivery for this was vendor had been struggling of late, reflected in a reduction in
to cover the existing functionality of ARC Internet Banking. headcount from almost 600 to around 420. Odyssey’s shares
The retail part was apparently almost finished by spring 2013, were held by its management team (notably by Antoine
while corporate and wealth management should be ready Duchateau, the company’s co-founder and chairman) and its
by September, said Burch. Three banks were in pilot, with funds were managed by Apax Partners, a French private equity
Nordea Bank in Luxembourg among them (Nordea was the firm.
poster-child for TCF’s wealth management theme, as it was Thecombinedwealthmanagementbusinesswasexpected
implementing the latest versions of Triple A Plus, alongside to generate pro-forma annual revenues of around $130 million
T24 and Temenos Connect). ($75 million of which would be Odyssey-derived) in 2010,
Client onboarding was also in the pipeline, although the which would make the unified entity ‘the largest wealth
development had been paused, as the bank that was engaged management vendor’. This figure represented a quarter of
in the venture had delayed its project. Metro Bank was by now Temenos’ total revenues.
in the UAT phase with Edgeconnect/Temenos Connect, with Odyssey’s main front and middle office software wasTriple
go-live anticipated in June. As stated, Metro Bank initially took A, a portfolio management system with some relationship
ARC Internet Banking, alongside the T24 core system and management and CRM capabilities, which had around 70
ARC Mobile, but subsequently opted for Edge IPK’s offering. users, mainly in Europe. Much newer was Wealthmanager, a
The implementation at Metro Bank was ‘very complex’, as it desktop application gained via Odyssey’s acquisition in 2008
predated model bank and covered much wider functionality of Canada-based Xeye and particularly strong in CRM. It was

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aimed at wealth management advisors. user base were Odyssey customers.
Temenos stated that the Odyssey offerings would be Temenos’ private banking division now had 150 clients
combined withT24 to create a complete front-to-back system in 125 countries, and there were specific geographies where
for wealth/asset managers and private banks. It was known the Odyssey acquisition would strengthen Temenos’ market
from the due diligence report, which had been seen by IBS, position. Hong Kong and China were given as examples, so
that one option under consideration was to replace bothTriple too North America.
A and Wealthmanager with enhanced T24 functionality and a Temenos was also seeking, over two years, to move Triple
gradual withdrawal of the Odyssey products. Retaining each A to databases other than Sybase. Pierre Bouquieaux, the
product would incur a lot of investment and many thousands vendor’sproductdirector,wealth,saidtheTripleAfunctionality
of man-days of development. If adopted, it seemed such a was ‘already quite rich’, so no significant developments were
transition would only happen over a number of years, with anticipated in this area, so the team was concentrating on
Temenos selling both Odyssey products ahead of this. Another ‘the improvement of usability’. The shift of database was still
option was to retainWealthmanager as the front-end toT24, in planned in early 2015, with the target being Oracle. There was
place ofT24’s existing asset management functionality. Either apparently a client commitment for this, so it looked as though
way, a shift of development to Temenos’ Chennai centre was it might finally happen.
on the cards. For the Wealthmanager product, Temenos was seeking
There was some overlap with ARC, and this issue would be to replace the user interface with the recently launched
addressed in due course, said Chuard, but for now the solutions Temenos Connect, said Bouquieaux, apparently with a lot
would continue to be included in the Temenos product line. of interest here. RBC Dominion Securities, for example, was
They would provide a great cross-selling opportunity, he upgrading from ‘a very old version’ of Wealthmanager to the
hoped. Only two of Odyssey’s customers had Temenos’ back latest edition, which would include the Connect component.
office system: EFG and Commerzbank’s private banking and Canada-based RBC was a long-standing user of the system,
wealth management arm, both in Luxembourg.There was also and theimplementation predatedWealthmanager joiningthe
a third site, where the implementation plans were in place but Temenos product portfolio. Incidentally, RBC’s operations in
the work had not started yet (this might have been a reference the UK ran Triple A, commented Bouquieaux.
to ABN Amro). Also important was long-standing Globus/T24 user,
EFG and Commerzbank provided Temenos with the ready Credit Suisse, which was rolling outWealthmanager to replace
interfaces between T24 and Odyssey’s products, but ‘in its existing front-end system and, according to Temenos’
time there will be much tighter integration’ resulting in one Arnott, was ‘doing so in such a way that when it is live with
combined offering, said Chuard. Wealthmanager used Oracle Wealthmanager, it could move on to changing the back’. A
but also some IBM technology. bank could also go the other way, he continued, as was the
By TCF 2011, the stated aim had become to eventually case of the aforementioned Nordea in Luxembourg, which had
move towards a best-of-breed approach from the three started with the implementation of T24 (replacing Olympic
products, although there would be intermediate steps to from ERI), followed by the front office renovation with Triple A
this. An interface was under way between T24 and Triple A. Plus and Temenos Connect.
Interfaces forWealthmanager, toT24 orTriple A, would be built There was also another less high profile product in the
on request.Temenos claimed that the technology roadmap for vendor’s wealth management portfolio, Datasource. It
these products had accelerated due to the extra investment was about to get a marketing boost, said Bouquieaux. It is
capability that it could bring compared to Odyssey. Odyssey an enterprise data management solution for large banks,
had apparently previously attempted a componentisation ‘particularly those with significant securities business’. The
project but was unable to complete it. product originated from Actis, Temenos’ German acquisition
500 people, or about one in seven, within Temenos were of six years earlier (see below). ProDB, as it was then known,
now dedicated to private banking. There was now a private was among the company’s set of products. It has a handful
wealth division within Temenos, with its own dedicated sales of takers today, mainly large European financial institutions
operation. (primarily German), including Landesbank Berlin (LBB), plus
A few new deals were closed in the six months after Odyssey UBS and Credit Suisse. ‘It is fully centralised, thus reducing
was acquired. These included Bankhaus Main in Germany for cost and risk,’ stated Bouquieaux. ‘You can have the best front
Triple A and First Hawaiian Bank and Gluskin Sheff in North and back office systems, but if you don’t have the right data,
America for Wealthmanager. With regards the opportunities the principle is simple: rubbish in, rubbish out.’
for cross-selling, Temenos estimated that half of ERI’s Olympic In the wealth management sector, Temenos took the

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opportunity in 2013 to offload a part of the former Financial credit unions).
Objects operations (see below), the Activebank wealth Shawn Doumy, product director of what was now called
management business. This comprised Activebank Wealth Insight Risk Intelligence, said T-Risk users would have to
Manager; Activebank PIP pension administration product; be on Insight Risk from 2013. T-Risk users were thought to
and Orchestrate middleware and client reporting tool. The include CMMB, a securities firm which in mid-2007 was the
buyer was UK-based Third Financial. first to take the product as part of a T24 implementation, and
Overall, there was now an emphasis on cost-efficiency Cyprus-based USB Bank (formerly Universal Bank), which
and progressive renovation, with Temenos positioning itself took it before TLC Risk was acquired by Temenos. Other banks
as a multi-product company. No longer should it be viewed as linked with the T-Risk system included Meezan Bank, Bank of
offering a single product, emphasised Arnott, as it now had a Georgia and National Bank of Malawi. The sunsetting of T-Risk
range of comprehensive solutions (business intelligence, risk appeared to have some potential to cause consternation in the
management, channels etc) that complementedT24 and that user base, with some users questioning why they would want
could be installed in standalone projects. to upgrade. Doumy pointed out that Insight Risk had newer
Wrapping up the add-on applications, Temenos has modules, such as for asset and liability management.
changed tack of late on risk management, somewhat There were apparently around 30 Connect takers by
mirroring what has been going on with ARC. Temenos February 2015. Metro Bank was apparently live and so too
announced in 2012 that it was stopping the development a client in Asia. Gunning admitted that, in the past, there
of its previous product in this area, T-Risk, which it had had been quite a gap between the number of takers of ARC
acquired in 2006 with a company called TLC Risk. The way Internet Banking (and Insight, for that matter) and actual go-
forward would now be based on the Insight tool, which lives.The components tended to be taken during the selection
stemmed from Temenos’ acquisition of Lydian Associates as they were expected to be needed at some point but often
in 2008, and another acquisition, of Primisyn in Canada, this did not happen as the banks became purely focused on
in 2011 (the latter’s user base was made up of Canadian their core projects.

Acquisitions – Actis, Financial Objects, Viveo

As well as acquisitions for add-on products, there has been a series of deals that have largely been centred on user bases. These
comprise Actis in Germany (2007), UK-based Financial Objects (2008) and Viveo in France (2009).


emenos acquired German software vendor, Actis.BSP, in a deal while but had made little progress in its attempts to move
worth $19 million in the first quarter of 2007. It was touted beyond its domestic market.
by Chuard as a way ‘to gain fast entry’ into a market that has Temenos said it would continue to support current clients of
traditionally been hard to enter for non-German suppliers. Actis.BSP’s Paba/Q (an IBM iSeries-based universal banking
TemenositselfhadpreviouslyexperiencedGerman-related solution used mainly by international operations) and BSP Trade
problems, with a German version of Globus/T24 proving (a securities system). The main thrust has been to move at least
difficult to achieve, resulting in a markedly over-running Paba/Q users to T24. The functionality and skills of Actis.BSP
project at Credit Suisse’s Frankfurt operation. While the were intended to provide ‘substantial input’ for a T24 Model
situation with Credit Suisse was‘resolved to the satisfaction of Bank version for Germany. This was likely to form a new ‘Paba/Q
all parties’, said Chuard, he confirmed that there were no live release’ as an upgrade path.
sites in the country at the time of the Actis deal. It took a long while for Temenos to gain success within the
Actis.BSP came with 30 or so clients, nearly all in Germany, Actis/BSP base. No doubt its track-record in Germany did not
and around half its revenues were from recurring maintenance help the message.
and outsourcing. The company had been around for a long As well as at Credit Suisse, there were subsequent issues

534 Universal Banking Systems Market Report |

in the country, as projects at two smaller banks, Ready Bank Kordoba system and Flexcube (now with Oracle FSS) were also
and Baader Bank, were cancelled. No one from either bank evaluated at an earlier stage. Germany would be the main hub
nor Temenos was willing to comment. The supplier had been for the T24 deployment at Maple Bank, but the agreement
its usual bullish self on the signings. Both leads were inherited also foresaw potential to extend the coverage to Canada, the
when it bought Actis and were turned into T24 contracts in a US and the UK. The system would be hosted at Temenos’local
relatively short time. It meant revenue from the Actis takeover data centre (as is Paba/Q) and would cover the bank’s front-
exceeded initial targets and the projects were intended to see to-back office operations.
T24 tailored for the German market. A second Paba/Q user was expected to commit to T24
A possible mitigating factor at Ready Bank was uncertainty imminently, said Kay Luhle, head of core banking projects in
about its future, through a repositioning by its parent,WestLB. Germany, Austria, Switzerland and Italy at Temenos. This was
Under pressure to relinquish Ready Bank, it was believed one of a number of delayed contracts mentioned by CEO, Guy
that it might be focused instead on a services partner role for Dubois, during Temenos’ Q2 results conference call in the
German savings banks. However, a source close to the project summer 2011.
alleged delivery problems with the German version of T24, Support for Paba/Q would cease in 2013, said Luhle. He
exacerbated by the need to incorporate complex German emphasised that Temenos had invested a lot in developing
withholding tax rules that were scheduled for early 2009. T24 German Banking System (GBS) and had 100+ Germany-
A lack of German documentation and changes in project based resources to cater for the local market (plus Austria
manager were also cited as causes. and the German-speaking part of Switzerland). By December
Ready Bank’s business was fairly standard whereas the 2010, the T24 GBS ‘base package’ was supposedly ready,
problem at Baader Bank seemed to be the heavy securities- enhanced by the addition of wholesale banking functionality
orientation of the bank. It was likely to have been a prospect in April 2011 and trade finance in August. Corporate banking
for Actis’ BSP Trade securities system rather than Paba/Q. followed in October, with the addition of consumer credits set
Despite the situation, Temenos had gained two more for April and retail banking for October 2012.
German recruits by September 2008, Honda Bank and T24 GBS is targeted at Germany’s mid-tier banking sector,
Europäisch-Iranische Handelsbank (EIH). The Ready which comprises 300 banks. It is touted as an integrated
Bank and Baader Bank problems had apparently caused package that includes the Insight business intelligence
discussions at the pre-contract stage but both duly signed. tools and (at this time) the ARC front-end/channel banking
Honda Bank, aided by a number of consultants, selected functionality, thus covering front-to-back office operations.
T24 ahead of I-flex Solutions and Fidelity’s Kordoba The system is meant to comply with local accounting and tax
subsidiary, offering Flexcube and K-Core24 respectively. It standards, and is integrated with a statutory reporting solution
was understood that Temenos, drawing on Actis resources, from a German specialist company (a similar arrangement
promised a complete German language team. The bank with Paba/Q had been in place for many years, ‘so there was
already had Misys’ Equation for deposits. T24 was taken no point in reinventing the wheel’, noted Luhle). The presence
for credits and might be extended in the next few years of local resources was also very important for German banks,
for leasing, although this would require a fair amount he added. ‘The German market is very conservative when it
of development. comes to giving international vendors a chance.’
It was understood that Honda Bank talked to both Ready The first live user of T24 GBS was the local subsidiary of
Bank and Baader Bank before signing and had also identified Banque Chaabi Du Maroc, which started running the system
the Temenos resources that it wanted to work on its project. in September 2011. The bank took T24 as a replacement of
At Hamburg-based EIH, a senior manager confirmed the Viveo’s core system, which it had selected in 2008.
selection but declined to comment beyond this. Once more, EIH and Honda Bank were apparently still implementing
the projects did not go to plan (see below). at this time, so had experienced extremely long projects,
Temenos finally had success with an actual Actis.BSP particularly given the size of the banks. As stated, these deals
client in Germany four years after the acquisition. This was dated back to 2008. In late 2009, EIH apparently went live
Maple Bank, a small European investment and wholesale with the customer module. At Honda Bank, the roll-out of
banking subsidiary of Canada-based Maple Financial Group. T24 had been due in October 2009, according to the vendor’s
The project started in September 2011, with a big bang go- initial announcement. A contact at EIH said merely the project
live expected in October 2012 (to coincide with the bank’s was in progress. Honda Bank would not provide an update.
fiscal year cycle). The deal was won against German vendor, Luhle confirmed both projects as ongoing. He attributed
Die Software Peter Fitzon, with its OBS core offering. The complexities and delays to the fact that these deals were

Universal Banking Systems Market Report | 535

signed before T24 GBS was introduced and also to the‘specific Württemberg (LBBW), which took Temenos’ offering in early
nature’ of the banks (Honda Bank, for example, is focused 2010 to cover its lending activity. Luhle emphasised that the
on auto financing). The message from the vendor was quite EIH, Honda Bank and LBBW projects were different in nature to
different in 2008, when then CEO, Andreas Andreades, was those targeted for T24 GBS, defined as integrated, enterprise-
quoted in the vendor’s press release as saying: ‘Honda Bank wide, front-to-back office support of the operations of a mid-
is an important win for Temenos as it signifies our continued size bank. In fact, Honda Bank gave up, turning in 2013 to
growth in the German market and the flexibility and ease local supplier, COR&FJA (subsequently bought by Sopra). EIH
of deployment of our T24 Model Bank in other sectors like Bank’s assets were frozen in 2011 as part of sanctions against
automotive finance’. Iran.
EIH and Honda Bank ‘will benefit from certain features
of T24 GBS’, said Luhle, and so would Landesbank Baden

Financial Objects
Temenos bought long-standing core banking system provider, IBIS, to a centralised installation of T24. ‘Because it needs to
UK-based Financial Objects, and its IBM iSeries-based system, set the system up differently, rather than just map it straight
IBIS, in mid-2008, for £27.2 million. At the time of the deal, IBIS across, the plan will probably take a year or so,’ said David
– once a strong competitor to two other IBM midrange-based Carruthers, ex-IBIS, who headed the former Financial Objects
offerings, Midas and Equation – was used by 40 or so banks, team within Temenos. There was an historical twist here as
typically for their foreign branches. Financial Objects also had IBIS had been developed by a subsidiary of MPS, and the UK-
the much newer Activebank Retail, which only had a handful based company set up to market it, IBIS, remained owned by
of users, a wealth management offering which had come via MPS until it was sold to Financial Objects in 1996. Locations
its acquisition of UK-based Wealth Management Systems in where IBIS came to be installed at MPS included Shanghai,
2005, and energy trading and risk solutions, gained through Hong Kong, London, New York, Frankfurt, Singapore, Madrid
an acquisition from Raft International in 2006. and Guernsey.
Chuard saw potential for ‘upselling and cross-selling’ into At this time, there were still 40 or so IBIS users, with only a
the Financial Objects customer base. He said at the outset that couple having moved to other systems since the acquisition.
it was not possible to say whether there would be cross-selling In these cases,‘they had been pressurised by their head offices
in the opposite direction. It seemed the Actis takeover of the for years to move off IBIS and onto group systems’, according
previous year had exceeded Temenos’ initial hopes and had to Carruthers. One other bank in London had closed. At least
become a blueprint for other such acquisitions. one bank, Alpha Bank in the UK, opted to buy the IBIS source
Temenos had been aggressively targeting the user bases code and to become self-sufficient. In early 2011, Cyprus-
of the two other iSeries-based offerings, as was clear from based Russian Commercial Bank (RCB), part of VTB, followed
a glance at the front page of its website, where it promised MPS and Bank Hapoalim in signing to move from IBIS to T24.
‘Temenos T24 Model Bank is the simplest way to replace Misys However, a year or so later, Crown Agents in London opted for
Equation or Misys Midas’. By buying Financial Objects, it was Sungard’s Ambit Core Banking to replace IBIS, preferring this
able to come at this smaller user base from a different route. to T24 at the shortlist stage. The bank’s director of operations,
Temenos agreed to pay a premium of 90 per cent over the Carol Pattullo, was not convinced that the T24 route was the
closing price of 31.5 pence per Financial Objects share on the right one, with part of this linked to the commercial terms
day of the offer, 2nd July 2008. Temenos’shares rose eight per being proposed by Temenos.
cent on the day of the announcement. Support for IBIS would cease in October 2013, according
It was then two and a half years on from the acquisition that to Carruthers, and the objective was to persuade the rest
the initial IBIS customers finally started to commit to T24. The of the IBIS users to move to T24. Temenos claimed to have
first to sign was Monte dei Paschi di Siena (MPS), in December created a model bank version of T24, designed to make it as
2010, followed soon after by Bank Hapoalim International in easy as possible for IBIS users to switch. Building it was ‘quite
the UK. a big project’, and involved a gap analysis between the two
MPS was looking to move from a distributed set-up, with systems. The second stage was mapping data from the IBIS
its offices in different locations mostly on separate versions of databases to the T24 databases, which Carruthers saw as

536 Universal Banking Systems Market Report |

‘most important from a customer point of view’.The third stage continue to be supported after 2013, although nothing had
was to set parameters in T24 to mimic IBIS’s style in terms of been decided. ‘This is a special case, as this bank is nothing
reports. ‘What we want is to say to customers that everything like our other customers.’
they do in IBIS is in T24.’ By now, Temenos had negotiated the sale of the source
Carruthers felt that if a bank took the model bank code to the few users of the newer Activebank Retail.‘Whereas
approach, a project based merely on data migration could be Activebank is a straightforward retail lending solution, IBIS is a
completed in a few months. Moving to T24 proper would take comprehensive banking system,’said Carruthers, making the
longer, but‘some of them will take the opportunity to upgrade latter closer to T24. The fact that there were only four users of
their processes, including the two or three we’re talking to Activebank Retail meant it was both uneconomical to support
at the moment’. Temenos’ efforts had been ‘well-received’, them and too expensive to produce a model bank upgrade
Carruthers claimed. However, he did see different levels of path to T24. Temenos therefore spent 2010 negotiating the
enthusiasm across the user base. As T24 is a much newer sale of the source code to the banks, which were C Hoare & Co
system than IBIS, he said, with much more investment, he saw and Charity Bank in the UK, ICA in Norway and Sweden, and
it as‘quite a natural sell’.‘The users that are growing have been SBAB, also in Sweden. SBAB was the last to agree terms with
most receptive to the message.’ Temenos, finally settling in December 2010.
One oddity is the Croatian Bank for Reconstruction and One of the other, non-core banking parts of the former
Development (HBOR). This government-owned bank signed Financial Objects, Activebank Treasury, has been subsumed
for IBIS around the time of the acquisition, and was still under into the T24 product set, and is now being sold as a front-end
implementation. Carruthers’ opinion was that HBOR would to T24 (see above).

Following on from Actis and Financial Objects, Temenos made be pushed and there were apparently 19 new licences for it
a third user base-oriented acquisition with Viveo. This was during 2014, some of which were on a SaaS basis.
Temenos’ largest deal at the time (subsequently surpassed For the time-being, it was stated that the users
by Odyssey), paying $81 million (3.8 times the expected would continue to be supported. It was possible to foresee
maintenance revenue of 2010). The deal was fully financed’s components being integrated into T24 or even
from an existing debt facility and was intended to secure for to become the future for Temenos’ core banking
Temenos’ position in the French-speaking markets, where it offering. After all, had been described by Viveo as ‘the
had so far struggled to gain a strong foothold. In this, there third generation solution’, boasting such features as platform
were similarities to the German market, targeted with Actis, independence (Viveo claimed references on Unix, the IBM
with both still dominated by domestic vendors and in-house iSeries and MVS) and database options including Oracle,
developments. SQL and DB2. The vendor also claimed a Service Oriented
Viveo had over 400 clients in France alone and another Architecture (SOA) design for, with three layers and
350 across 35 countries. Not all clients were core banking Web 2.0 support. Much of it was Java based, although, rather
users, as Viveo had a range of products, such as AML and oddly for a system that did seem to have been written from
other compliance software, securities solutions and payments scratch in the last few years, it had a Cobol core. It could be
processing. The vendor’s core banking system,, had taken as a broad package, in components or as a technology
around 30 users, including GE Money Bank in France, BRED platform for building bespoke applications.
Banque Populaire, Monabanq, BNP Paribas and the French BRED Banque Populaire used the claims management
arms of Lloyds TSB, Bank Saderat Iran and National Bank of module of and also had Viveo’s component banking
Abu Dhabi. There were a number of other, older core banking model. It had also been evaluating the debt management
system user bases within Viveo, as it too had been acquisitive module of and had been talking to Viveo about the
over the years. savings component.
Viveo’s payment processing engine and AML software Temenos’Hilsenkopf took responsibility for the integration
were cited as complementing Temenos’ portfolio (a deal was of Viveo, and was also put in charge of French-speaking
signed with Barclays for the AML solution around the time territories as part of a wider shake-up.
of the takeover). Indeed, the AML software has continued to In fact, it soon became apparent that was to be

Universal Banking Systems Market Report | 537

culled, with the users ultimately being pushed towards T24. users, and in France, Banque de France. Société financière de
Sales of were halted and there was the redundancy la Nef (La NEF), an ethical microfinance organisation in the
of more than one-third of Viveo’s workers. This caused the country which signed for Temenos in 2009, was due to go live
resignation, soon after the takeover, of Viveo’s co-founders, imminently, according to Sfar.
CEO Dominic Lejeune, and chairman Raymond Ascer. Ascer Temenos’ efforts to integrate some of Viveo’s products
had initially sounded a positive note: ‘This is a very good deal were a ‘major aspect’ of the acquisition, and counted in
for Viveo Group and all of its stakeholders… our employees Temenos’ favour. In going for a different system, ‘we would
will have more opportunities to develop and progress.’ An have had to cancel all the Viveo modules we have invested
integrationcommitteeinvolvingAscer,LejeuneandHilsenkopf in so far’, Sfar explained. While some other users, like
had initially been set up. Monabanq, planned to stick with the system and didn’t expect
The messy integration of the two companies has been any disruption,‘we hadn’t yet invested in like others, so
drawn out, with a series of court cases involving Viveo staff were more flexible’, he added. The schedule at TF Bank was for
and the Confédération Générale du Travail (CGT) union. Staff testing to start in October 2010 and migration in December.
from Viveo downed tools repeatedly. Under the banner of Another customer that signed for just ahead
‘Production in India, Money in Switzerland, Jobless in France’, of the takeover also subsequently opted for T24. This was
workers have protested as part of national demonstrations Morocco-based Banque Chaabi du Maroc, which had taken
and at Viveo’s headquarters, as well as petitioning the Swiss to underpin its European expansion. This would have
ambassador and the French minister of labour. seen tailored for a number of new countries. The bank
Rubbing salt into the Viveo wounds was the fact subsequently began a study to determine the advantages and
that, according to analysis by zCapital, an independent disadvantages of and T24, according to Hassan Idel-
Switzerland-based asset manager, Temenos’ then CEO, Ouali, a spokesperson from the bank. T24 had not originally
Andreades, received a compensation package of CHF30 been considered when was first chosen. After the
million (€22 million) for 2008 and 2009. The calculations analysis, during 2011, the Moroccan bank started to roll out
were based on information gathered from the 2008 and 2009 T24 for a number of sites, including Germany.
annual reports (in 2008, Andreades received a CEO-incentive La Compagnie Financière Edmond de Rothschild
package in shares as a fixed bonus for the following years).The became the next Viveo customer to sign for T24, followed by
analysis put Andreades at the top of the highest earners list. Swissquote, the first to sign for the Java version of T24 (see
Meanwhile, Viveo workers claimed to have had salary cuts. below).
However, there was some progress in the Viveo user Other vendors, both domestic and would-be entrants, saw
base, as well as in France in general. Tunisian Foreign Bank the situation as an opportunity. The main domestic players
(TF Bank) became the first known Viveo customer to sign for are Capital Banking Solutions, Delta Informatique (bought
T24, doing so in May 2010. TF Bank had decided to implement by Sopra in September 2011) and SAB. Sopra itself is a major just before Viveo was acquired, according to Habib El player in the lending and payments space. SAB gained Viveo
Montasser Sfar, president of the bank. Its relationship with customer, Quilvest Banque Privée, a private bank based in Paris.
Viveo stretched back to 1996, with the bank using Viveo’s Quilvest needed to replace a number of Viveo applications
software for regulation, Basel II and other activities. TF Bank’s that would no longer be supported, including Applibanque, a
core system had been built internally. legacy account management application, Egyde and Progest,
‘We had long discussions with Temenos, and finally which are securities tools. It signed for SAB’s core system plus
decided to invest in T24,’ Sfar stated, adding that TF Bank portfolio management system and CRM front-end. Acustomer
was initially ‘somewhat hesitant’. TF Bank had originally been of NewBanking, a Swiss system that had been acquired by
keen on for a few reasons. It was cheaper than T24, well Viveo, to go elsewhere during 2011 was Banca Popolare
known in France and ‘very well tailored to small banks like TF dell’Emilia Romagna in Luxembourg, opting for Callataÿ &
Bank’, he said. Viveo already knew TF Bank’s IT set-up through Wouters’ Thaler.
its existing relationship. Weighing against these factors, ‘TF Temenos has a small number of other clients in France.
Bank didn’t want to invest in a system which will probably be In 2004 it had won the deal from Banque de France, beating
maintained for less than five years and then cancelled’, Sfar Callataÿ & Wouters, SAP and several French suppliers at the
stated. shortlist stage. More recent deals have come from Caisse
‘ was very convenient and a very good system, but I des Dépôts et Consignations (CDC) and the aforementioned
would say that T24 is more flexible,’ Sfar believed. He was also La NEF. CDC is state-owned and specialises in lending to
reassured by the size of Temenos’ customer base. In Tunisia communities to support social housing projects. It signed
specifically, Best Bank, Banque Zitouna and BIAT were T24 for T24 in 2009. However, CDC subsequently signed in May

538 Universal Banking Systems Market Report |

2011 with SAB, following an RFI and RFP for a solution to Barclays, HSBC, Société Générale and Crédit Mutuel-CIC.
cover current, savings and deposit account management, Another module is Réglementaire, which deals with
payments, reporting and business intelligence functionality, financial reporting to Banque de France and the ECB, and
CRM, business activity management and a portal. Temenos’ this is widely used and was already integrated into T24.
project at CDC was on the credits side and was thought to Modules for payments, AML and other areas are also part of
be unaffected by this latest deal. It was not known whether the collection.
Temenos was in the running for the larger deal (which was to However, Temenos had not yet committed to replicating
cover four million accounts, with about 900 concurrent users). any functionality within T24. ‘We will evaluate the various
In relation to Viveo, there was a major u-turn in mid-2012, components of, and how we take these functionalities
withTemenos giving up its attempt to migrate the entireViveo into a componentised approach in T24. But we are not
user base to T24 by the end of 2014. Instead, it was now ready investing in the products,’stated Delahaye. He also put
to offer users of, individual modules and other Viveo- the change of strategy in the context of Temenos’recent focus
derived systems, a choice between a five-year maintenance on progressive renovation and componentisation, rather than
contract and a one-year contract. Bernard Delahaye,Temenos’ rip-and-replace projects. So the supplier’s decision reflected
regional director for Southern Europe, the Middle East and ‘the evolution of Temenos’.
North Africa, said: ‘Over the last two or three years it became Temenos is also emphasising its Model Bank strategy for
apparent that while the migration strategy was relevant to France. ‘We are stepping up development,’ Delahaye said.
some customers of Viveo, many others are using individual This was being led by Michael Wanner, who was CTO at Viveo.
components and for them the move to an integrated Support of the Viveo user base was also being integrated into
T24 platform is not relevant. To these people, the future was the overallTemenos model.‘We will treat customers
doubtful.’ like the T24 customers,’ stated Delahaye. There would still be
Delahaye counted over 400 clients using combinations people in Paris giving first-level support, but‘while it used to be
of the 40 or so different components of The number a nice quick local personalised support, it will now be enhanced
which used as a core banking system was now with the rest of theTemenos support infrastructure’. Indeed, for
about 20, he said. ‘Some modules are used by three or thoseViveostaffleft,Delahayefeltthat‘clearlythecommitment
four customers, some by 20 or more.’ Participation, of the company to France is a comforting message to
for example, is a module for stocks and fixed income our people’.
securities, and is used by large banks including BNP Paribas,


As well as the ‘satellite’ applications, Temenos has been seeking late (the company claimed a record 98 go-lives in 2009), but
to overhaul the core system once more, this time with an delivery has clearly been a problem area for Temenos.
emphasis on breaking it down into component parts. This is A product factory, the Arrangement Architecture (AA),
meant to allowTemenos to deliver portions ofT24 to co-exist with was part of the remedy, breaking down financial products
a bank’s existing infrastructure.This is particularly with the needs into components. It is meant to see a move away from
of tier one banks in mind, with an understandable belief that they silos and modules towards a single point for designing,
will take a phased approach to systems transformation rather manufacturing and cataloguing products. Within R10,
than a rip and replace one, although the challenge of breaking Temenos claimed to have done this for term deposits, to add
up a long-standing, monolithic core banking system shouldn’t to work that had been done for lending for R9. North Shore
be underestimated. Credit Union in Canada was cited as a pilot site for some of
Other suppliers have paid lip-service to such a stance but, these capabilities.
as is the Temenos way, the company has thrown a lot of R&D In R11, componentisation was planned for demand
behind the strategy. At TCF in Berlin in June 2010, Temenos’ account processing and product bundling. The first focus for
Loustau said the‘full componentisation of the system’should the latter was to be off-set mortgages and then interest pools.
ease the implementation and integration. ‘We want to de- Also planned was customer level pricing.Temenos introduced
risk the implementation of core banking systems, which its own workflow and process engines, although users could
admittedly is a very lofty goal.’ He claimed improvements of take third party equivalents. A real-time decision engine

Universal Banking Systems Market Report | 539

was intended for R12, which would allow banks to react to version and it seemed stable but Fanzott believed this bank
customer events via staff interaction at the branch or call was the only one live with the IBM database version of T24 at
centre or via automated prompts from other channels. this stage. More generally, as other users have observed, he
The componentisation of T24 has been in parallel with the believedT24 did not make full use of a relational database, due
release of T24 Enterprise (T24E), the Java-based version of to its original design.
T24 that Temenos had been working on with IBM, initially for AA with Release 8 gradually improved but was still not
the mainframe. The two suppliers believed that components completely reliable, said Fanzott in early 2012, and was the
combined with the IBM technology stack would play well in cause of most of the issues that the bank still faced at this
the tier one and two market. time. Some of the anomalies of the market were ultimately
Componentisation was ‘not for the faint-hearted’, said solved with inexpensive and simple fixes but identifying the
Loustau, at the unveiling of T24E at the 2011 TCF. But he requirements often took far longer. The go-live itself was
claimed T24E was five per cent faster than the C version in painful, with lots of issues and long hours to counter this.
lab testing, with further benefits expected from ongoing Fortunately, the next implementation was much smoother. It
tuning. As it can offload work onto low-cost processors, was for Release 10 and AA for Herzegovina.
Loustau claimed thatT24E could also deliver savings.The next Another bank to have problems with AA was Laiki Bank,
component would be for accounting. Currency and charges which was implementing T24 Release 10 for Cyprus in 2011
components would follow. and into 2012. It had experienced a troubled couple of first
Hypo Alpe Adria Bank has been something of a pioneer phases, for customer information and savings, ahead of a
with Temenos’ component strategy and, predictably, has planned major cutover for the rest of its business - 80 per cent
the scars to show for this. It was the first to take the new AA - in February 2013. There had also been performance issues,
component. The first cutover, in Montenegro, was fraught whichsawthebankselectathirdpartyperformancetestingtool
with problems but a second one for Herzegovina went much from The Core Banking Group (in preference to Temenos’own
smoother. The project then moved on to Bosnia, Montenegro tool,T-Verify) to try to overcome these for the final major phase.
and Serbia. In fact, Laiki Bank was forced to merge with Bank of Cyprus in
The local requirements for interest calculation and 2013 as a result of the island’s financial crisis, with the latter’s
accountingprocesses,togetherwithotherhighcustomisation Misys Equation system chosen to support the combined entity.
efforts, soon became apparent in the bank’s T24 project. ItwastheendofalongandingloriousepisodeatLaiki,following
While the bank had separate in-house built general ledger and a selection in 2007, with early phases dogged by performance
reporting systems, which could handle the country specifics, and scalability issues, in part blamed by the bank on the
the existing Loans and Deposits module of T24 could not. jBase database.
Attention turned to the emerging AA, allowing banks to define
new product facilities such as interest rates and eligibility rules.
This looked as though it would provide the flexibility to support
the local requirements and accounting processes through
the ability to define new products and workflows quickly and
easily by configuring existing product components rather
than needing to start from scratch every time.
Ernst Fanzott, director at the bank’s IT Shared Service
Centre in Belgrade – ZIS – inherited the project and admitted
that he was not sure that AA was the right decision at that point
in time. It had subsequently become a strategic component of
T24 and offered high flexibility. However, the bank was already
a pioneer by virtue of taking the IBM DB2 version ofT24 (linked
to ZIS’s traditional IBM slant and expertise). Using AA, a brand
new product that had not previously been deployed, was an
additional risk.
The bank started to implement Release 8 of T24 including
AA. The latter proved to be a ‘beta version’ and should not
have been released, in Fanzott’s opinion. The DB2 driver also
caused problems and these were the two main obstacles,
although the latter was resolved in two to three months. As
mentioned, Nova Ljubljanska Banka in Slovenia had the DB2

540 Universal Banking Systems Market Report |

Platform Optimisation
The emphasis was now on T24 becoming the leading domestic operations as well as branches in France, Switzerland
application for each of the three major technology stacks of IBM, and Cyprus. It was the first bank to attempt to closely integrate
Microsoft and Oracle. ‘You will see us over the years building T24 with Oracle’s Business Process Execution Language
out components that enhance the customer experience, and (BPEL) engine, Fusion workflow engine and middleware,
the operation within the stack,’ said Andreades, at the 2011 Business Activity Monitor (BAM), data warehouse, CRM and
TCF. Within this context could be seen many of the product ERP applications. However, the project ran hugely late. The
announcements made during the forum. focus ended up solely on the bank’s domestic operations,
By 2007, the database options were clear in that, of new where it had a network of around 50 branches and outlets, and
clients, 42 per cent that year took T24 on Oracle, 48 per cent on cutover to T24 came in August 2013, six years after the start,
jBase, eight per cent Microsoft SQL Server and two per cent IBM after which the work moved on to the Oracle components.
DB2 (Banque Raiffeisen in Luxembourg – not to be confused On the SOA front,Temenos was a notable addition to SAP’s
with the larger Raiffeisen group – took the latter). The port collaborative efforts at the end of April 2008. At this time, SAP
to SQL Server was largely done to give a public statement of fulfilled its promise to turn its Industry Value Network (IVN)
openness, said Gunning, although there had been a possible into an independent body. The replacement, the Banking
first client in mind. However, this version had been much more Industry Architecture Network (BIAN), was launched at a
popular than expected. Recruits in the previous couple of meeting in Frankfurt and saw the notable addition of Microsoft
years included North Shore Credit Union in Canada, Investec as well as Temenos. The new body is financed by its members
Australia and Glitnir. The takers tended to be physically (eight financial institutions, five suppliers and four services
relatively small but the uptake showed that customers were companies at the outset) and all output is intended to be freely
happy to use SQL Server for their core banking systems, said available. That output is centred on the definition of services
Gunning. Cost and in-house expertise was the driver in at least for the banking sector, to fit within an SOA model. BIAN was
one instance; one wanted‘anything but Oracle’; and there was meant to build on the work done within the IVN and the first
also some indifference, with customers not really bothered available output was scheduled for the third quarter of the
which database they took, so long as it worked. year.
Temenos had voiced its frustration with IBM in the past but On the database front, Temenos has been gradually
there had been big improvements with DB2, said Gunning, phasing out its own jBase, with this component a cause of some
in 2008, and the two companies would work to ‘encourage’ criticism from users (aforementioned long-standing Globus/
greater DB2 uptake. He said he would like to see eight per T24 user, Nova Ljubljanska Banka in Slovenia, jettisoned jBase
cent Microsoft, eight per cent IBM for the year. However, in favour of DB2 within a major upgrade to R8, for instance).
an IBM iSeries version of T24, promised off and on over the Temenos would not cease support for jBase, said Gunning, at
previous few years, no longer featured in Temenos’plans and, TCF 2012, but it was no longer being actively sold. This came
indeed, Gunning said that the couple of users (one of which as something of a shock to users, particularly those that had
was Turkish Bank in London) would be moving away from the recently implemented – or were mid-implementation - of the
platform.There was no demand from the market, he said, even jBase version of T24.
among users with existing iSeries-based systems. Prior to the merger with Bank of Cyprus, Laiki Bank
At this time it was working on the third phase of‘Temenos had been implementing R10 of T24 on IBM’s AIX Unix and
Web Services’. Temenos had defined 1200 services by ‘unfortunately’ with jBase, said Theodora Papa, head of
March 2008 and its SOA work was one reason for a win the banking systems IT at the bank. This database was one cause
previous year at Banque Libano-Française (BLF) in Lebanon, of the performance problems in the bank’s first two phases.
said Gunning. However, those services had proved quite The announcement that jBase would be discontinued came
difficult to use so the emphasis was now on ‘building real as ‘a big shock’, she said. The bank’s selection was four or five
business services rather than exposing everything we do’. The years earlier, at which time jBase was bundled as part of the
expectation was that retail banking would be the priority and overall solution and there were assurances fromTemenos that
that delivery would be in Release 9, albeit with pilots before it would not be a problem. As the bank was now mid-project,
then. it would be pressing on with the jBase version. If stress testing
In fact, BLF had been having a tough time. It had embarked showed that jBase could not handle the volumes, then the
on an innovative project to fuse T24 with Oracle components. bank might need to consider Oracle or DB2, said George
This was part of an ambitious technology modernisation Charalambous, Laiki’s IT contracts officer.
project, with a three-year phased migration plan to cover its For Oracle, this supplier’s technology team remained

Universal Banking Systems Market Report | 541

very enthusiastic, said Gunning. Andreades pointed to For IBM, the componentisation of T24, with the release
Oracle bringing leads to Temenos and also statements in its of T24E, was a prominent message. Oracle had ‘essentially
own collateral about the strength of T24. One reason for the abandoned the mainframe strategy’, said Andreades.‘Maybe
support, he said, was that if Oracle won a deal for its own as a vendor community over the last ten to 20 years, we
system, Flexcube, then it would clearly gain the database haven’t done a great job of addressing the needs of large
decision but this was not guaranteed with T24 sales, so there banks in terms of gradual renewal.’ Such banks were now
was a good reason to be supportive. Between 50 and 60 per facing ‘fundamental issues’, but ‘we believe the technology is
cent of T24 sales were on Oracle by 2010. Flexcube was still the getting to the point where it starts being credible’. As well as
number one competitor, said Andreades,‘but I-flex was a more improvements in technology, he felt that allowing a customer
important competitor pre-acquisition than post-acquisition’. to split a large project into separate pieces would encourage
A lot of emphasis was being placed on the partnership with banks from a capital expenditure perspective, making the
Microsoft and there had been an acceleration of adoption of commitment more manageable.
the SQL andWindows version ofT24. Reflecting this, Microsoft Temenos’ relationship with IBM was managed by Bob
had set up a T24 competency centre in its UK labs. ‘Microsoft Berini, who joined Temenos in 2010 having worked at IBM for
has made a real effort to provide technology, support and 30 years. ‘All the other players in the tier one space already
expertise,’ Andreades had said at TCF 2010. He pointed out had System z offerings, but not in native mode,’ he said. T24E
that Temenos was one of only five global partner ISVs and is native in IBM’s Websphere application server. Berini saw
the only one in core banking. The relationship had included latent demand which had been postponed since the banking
Microsoft sharing 1400 named accounts in the banking sector crisis. Initially signing one or two accounts would be a ‘home
with Temenos. ‘You can run some big banks on Microsoft and run’. Berini left Temenos in December 2012, just two years into
T24,’ said Andreades. He pointed to the previous year’s deal the job.
from Microsoft advocate, Bank Sinopac, in Taiwan, which had There was a tender under way at this time (2010/11)
six million customers. In Sinopac’s case, it was claimed that a at BNP Paribas, which was seen within Temenos as one of
50 per cent reduction in hardware and software maintenance the largest ever RFPs. The bank was looking for customer
costs was achieved by implementing T24 on Microsoft. The account management software, an initial area of focus for
combination had also done well in Canada, he pointed out. componentisation. Temenos was shortlisted with Callataÿ
Temenos was also talking to Microsoft about the possibility of & Wouters, which had an existing relationship with the bank
incorporating the latter’s Dynamic CRM offering as a front-end based on Thaler running on the z/OS mainframe, and Infosys.
to its own ARC CRM platform. And Temenos was planning to Later in the year, BNP Paribas went with Callataÿ & Wouters
harness Microsoft’s Sharepoint for collaboration capabilities (now Sopra).
and to provide tighter integration with Office. At the start of 2015, Gunning said Temenos no longer
Temenos was seeing increasing uptake of both the viewed what wasT24E as separate,withastandardarchitecture
Microsoft and Oracle versions of T24, said Andreades. At the for the smallest to largest banks.
same time, for IBM, the z Series and DB2 version of T24 could In January 2015, the non-banking part of the jBase
be a ‘very credible upgrade path’ for tier one and two banks business was sold by Temenos to US-based cloud computing
with existing mainframe environments. specialist, Zumasys. By this time, Gunning said that jBase was
By the 2011 TCF, for the Oracle stack, benchmark results categorically no longer sold by Temenos with T24 but that
were released for the Exadata database machine, with it had taken a while to die because sales people kept selling
Temenos promising to start offering a pre-configured version it from time to time because they liked it. This was despite it
ofT24, as well as the hardware itself to prospects. For Microsoft, being removed fromTemenos’price list two years before. Even
Temenos claimed that six customers were now running T24 ifTemenos announced it was going to discontinue support for
on the Azure cloud (all microfinance institutions in Mexico), the jBase version, said Gunning, which it hadn’t by the start
and also demonstrated live its new ARC Mobile offering on a of 2015, it would still effectively be five years from that date
smartphone with the Microsoft operating system, Windows before support for jBase releases would end.
Mobile. By this stage, the breakdown of database usage within
Since then, Temenos has pressed on with Azure so that by the T24 base was roughly 140 with Oracle, 70 with SQL, ten
May 2013, a number of other customers were live (including with DB2 and the rest on jBase. As SQL had started three or
a couple in Africa, Renaissance Credit in Nigeria and Fountain four years later than Oracle, the figures actually showed the
Credit Services in Kenya). There were talks of new contracts relative popularity of the Microsoft option. All SaaS deals to
for this offering now being finalised in Asia, one being Amret date were on SQL.
Microfinance in Cambodia, although this ultimately went with An additional benefit of components will hopefully be the
a traditional in-house IBM AIX and jBase platform, not cloud. ability to test portions of T24, when there are any bug fixes or
It was somewhat confusing that Amret Microfinance took the other changes, without testing the whole. This would also aid
jBase version of T24 after Temenos’ announcement that it Temenos’own internal testing and should ease upgrades, said
would no longer proactively sell jBase (there were other jBase Gunning. AA was ‘built perfectly’ for this sort of scenario, he
bids at around this time as well). added.

542 Universal Banking Systems Market Report |

A Java version of T24

The other dimension to the recent technical work was the arrival NewBanking, as the back office system needed to interact with
of the full Java version of T24. This gained a first live site in late the customer facing front-end, which was Java based. ‘Many
2011 at Swissquote in Switzerland, which stated that this version vendors proposed Java interfaces, but with core systems
was stable, with satisfactory performance. that are quite old. T24 was the only one that was fully Java,’
The Java version of T24 had initially been promised in May said Buzzi. Swissquote therefore signed to become the first
2010 for IBM’s z Series platform with DB2. Benchmarks were institution to implement the Java version of T24, which was
expected during the summer in IBM’s labs in Montpellier. Early released earlier in 2010.
results showed throughput of more than 4000 transactions ‘As far as I know, the Java version is finished,’ Buzzi said.
per second, said Gunning. The work had been under way for He felt that T24 was ‘quite flexible’ and was reassured by the
some time, he said,‘and it plays very neatly with IBM’s strategy size of the user base. Meanwhile, the risk of being the first to
with the z Series’. Previously, T24 could run on this mainframe implement the Java version of T24 would be lessened by the
platform but only via a Linux partition. However, Gunning fact that the legacy system was still in place and maintained by
emphasised that the Java version, to be released with the next Temenos. Buzzi expected that building the interfaces between
version of T24, Release 11, would ultimately be available for T24 and the front office solution would be straightforward.The
any platform that supported Java. The migration from the C interfaces would be based on XML messages sent with Java
deployment was relatively mechanical but optimisation was Message Services (JMS).
key, he said. Importantly,Temenos would retain both versions. While the main focus of the implementation was not to
The C version was very well proven, he said, and ifTemenos did cut costs, one area where this was felt possible was corporate
not have a version that could run on Windows then it would be actions. This was a goal of Swissquote for the medium term.
closing off a major platform. ‘If we can automate corporate actions it will save plenty of
Swissquote had over 150,000 clients out of about 400,000 manual work, andTemenos seem ready to work with us on it. It
online traders in Switzerland, and its aim was to automate its will be tough to automate all corporate actions but if we can fix
processing as much as possible. Paolo Buzzi, the firm’s CTO, the most frequent ones, that would be a good step,’said Buzzi.
said this was ‘not just to reduce the cost, but also because if The cutover to T24 had been planned for March 2011
you can automate your processes they will be more efficient, but occurred on 1st September. According to Swissquote,
faster and with less errors’. The new system would interface to the Java version of T24 had proved to be stable, with strong
Swissquote’s proprietary front office software. commitment to the project from Temenos and with the
Its existing NewBanking solution was owned by a expectation that T24 would support the institution’s future
consortium including Unisys and FB Consulting before it was growth.
acquired by Viveo. Swissquote was starting to outgrow the By the start of 2015, apparently five or six customers were
system when Temenos acquired Viveo. ‘It was a good time for live with the Java version of T24 with the number of additional
us to ask whether our current system would still be good for implementations in‘high single digits’. The machine sizing for
the next ten years, and we took the opportunity to check the the two versions was identical, said Gunning. In some areas,
Swiss market and different packages,’ said Buzzi. the Java version ran faster than the C version and, even where
Swissquote was looking for a Java replacement for this wasn’t the case, there wasn’t much in it.

Later releases of T24

There were supposed to be over 200 enhancements in R11. For For retail banking, the promised product bundling was
trade finance, these included originating import letters of credit a new feature, enabling products such as offset mortgages.
via the web, and online facility management. In the syndicated Product eligibility was now rules-based. R12 of T24 for retail
lending space, R11 allowed multiple products in a single facility. would see the introduction of the master and sub-account
In R12 of T24 was promised enhanced uploads and downloads arrangements, and greater functionality for savings products,
of documents. Areas such as supply chain finance, e-invoicing, such as inflation linking and goal setting. More generally, the
factoring and forfaiting were touted to be targeted in future. user experience had been improved, with greater use of rich
For cash management, R11 brought more support for pooling, internet applications.
inter-company lending, and other areas, and Temenos said it By TCF in Barcelona in May 2012, Temenos was ready
would be using componentisation to create a standalone cash to announce another part of the component architecture,
management product. Temenos Enterprise Frameworks Architecture (TEFA),

Universal Banking Systems Market Report | 543

which is an integration framework. This promised ‘codeless app-store would only be accessible byTemenos and its clients
integration’in the words of John Schlesinger, chief enterprise and partners. Participants would be able to browse available
architect at Temenos, and was demonstrated by Microsoft, applications and modules and download them.
one of the sponsors of the event, writing a user interface to Contributors to the store would include partners,Temenos
T24 for Windows 8 in 100 hours, without input from Temenos itself and ‘clients who will be able to upload enhancements
engineers. that they have written for use by the wider community’, he
Loustau brokeTEFA into a design framework, a component said. ‘Our objective is to broaden and formalise the Temenos
framework, a platform framework and an integration vendor community, providing more choice and transparency
framework. The design framework stemmed from the for our clients.’This venture closely resembled the already up
Odyssey acquisition. It was thought that this was originally and running app-stores of a few other vendors, includingFiserv
conceived by Odyssey as a Design Studio but it had not been and Jack Henry in the US. The former had an app-store for the
developed by the time of the acquisition. It was supposed users of the DNA core platform (originally the Open Solutions
to be a web-based configuration tool for both of Odyssey’s development,broughttomarketpriortothevendor’stakeover
products (Wealthmanager and Triple A Plus), and Odyssey by rival Fiserv), and the latter offered PowerOn Marketplace
had committed to its development for ABN Amro as a beta for users of the Episys credit union system.
customer. It is intended to give designers the ability to write The app-store didn’t seem to have moved forwards much
screens outside of T24 before putting them into a source a year and a half after its launch. It was now described by
control system and from there into the production system, Temenos as a ‘Marketplace’, with the first version not having
and should cut down the process of building ‘model banks’ the ability to buy anything. The first release, for some time in
for different countries. And the component framework is 2015, would have some front-end widgets, for connectivity
supposed to allow the upgrade of individual modules without (such as to facebook) and there was likely to be a couple of
disrupting the rest of the user community. connectors from partners (for linking to their applications, but
The integration framework, available as part of R12, with users then needing to separately buy those applications).
promised ‘code-free’ integration. The platform framework It would constitute a ‘shop window’, said Gunning, for other
would see an effort to push the almost one million lines of code applicationsbutwithouttheabilitytodownload.Heenvisaged
in T24 back into the platform, so there should be less need by a move towards a more functional app-store in 2016.
customers for T24 skills. The component framework was on The next component announcement was in 2014, with
the roadmap for after R13. The TEFA concept also picked up the unveiling of the Database Framework, which is further
on the AA module. Mark Winterburn, group product director, intended to help Temenos pick up clients in the tier one
stated that 14 clients were already live on AA (including North space. One of Temenos’ largest clients, JPMorgan Chase, was
Shore Credit Union in Canada), and that others were currently unveiled as the beta customer for the framework. The idea of
implementing it. the Database Framework is to split the transactional (read-
By the start of 2015, all retail functionality and SME lending write) from the reporting (read-only) database at a bank,
was apparently supported by AA. More ‘esoteric’ products, leading to a couple of benefits.
such as commercial lending, were outside AA and Gunning The first is to cut down on the size of the transactional
felt the most complex products, such as syndications, would database. A typical T24 user would see a 65 per cent
always remain so. reduction, Temenos claimed. In JPMorgan Chase’s case, the
Between them the different parts are supposed to database size should drop from five terabytes to under 300
reduce the risk of software replacement, not least by only gigabytes, making it easier to store, recover and back up.
implementing single components of T24. As Schlesinger The second related improvement is in query performance.
stated, the aim is forT24 to be a complete platform for universal A read-write database is usually optimised for transactions
banking plus a selection of standalone modules that can be rather than reporting, but as the world moved to online and
used as a niche system at larger institutions. Benchmarks had mobile banking, so Temenos expected the ratio of queries
apparently shown 9.3 million accounts supported on AA. to transactions to rise from maybe five to one to 500 to one
In one other development, Temenos is seeking to bring and beyond. Running queries from the read-only database,
to market an app-store, Temenos Application and Module which could be updated from the read-write database in
Store. This was initially scheduled for Q4 2013. ‘The purpose near real-time, should improve the speed and breadth
of this store is to provide a marketplace for reusable software of the queries run. For the largest banks in particular, this
extensions and applications for the Temenos community,’ should mean better analysis of data and better ability to run
explained Gunning. T24 and Temenos Connect had a long campaigns.
history of third parties ‘developing software to extend and This framework was in the early stages of development,
complement the core functionality’, he commented, ‘so the with phase one available in R14 of T24 and more functionality
products lend themselves to this type of enrichment.’ The promised for 2015.

544 Universal Banking Systems Market Report |


Among the ways that Temenos has sought to improve its supporting financial institutions and corporates in Dublin.
delivery has been a switch to working with third party services HP also gained a hosted T24 facility, in 2014, when it bought
companies. Indeed, Temenos adopted a specific aim to reduce ZIS, the aforementioned Belgrade-based IT subsidiary of Hypo
its services-related revenue. Services have always been a difficult Alpe Adria. The bank is effectively the first customer but HP
area for software companies, with problems making healthy plans to offer hosted services from here to other banks.
margins and the danger of having too many or too few services Temenos signed new partner agreements in 2013 with
resources available at any point in time. Accenture and Software Group. The latter was certified to
Temenos has signed plenty of partnerships since the resellTemenos’cloud subscription offering, while the former
switch, attracting interest from services companies because became a global implementation partner, building on a prior
of the sheer volume of projects that are available to work on. relationship centred on the implementation of the Odyssey-
It has a specific accreditation programme and by mid-2011 derived systems. Sales partners that scored wins included
it had signed Cognizant (in 2009), Capgemini and Deloitte, Fortress Data Services in Indonesia, for the SaaS version of
plus smaller outfits like Pakistan-based NDC Technology Temenos, and Rubik in Australia, with a go-live at Uniting
Consultants. In 2011, it signed a partnership with Wipro to Financial Services. Fortress claimed seven takers by late
offer a hosted version of T24 to European banks, and with 2013. Rubik had two, with another apparently signing since
GFT, to provide project management and testing services then.
to European T24 users. CSC was added in mid-2010 (for On 4th November 2015, Temenos announced that Rubik
Germany and German-speaking parts of Switzerland), with Financial Limited (Rubik) (ASX: RFL) a leading technology
IBM Global Consulting in late 2011. company that delivers innovative wealth, banking and
A specialist has been Sofgen, initially set up in 1999 by a mortgage solutions to the financial services industry,
couple of technical Temenos staff. As an example of its work, extended its partnership agreement withTemenos to upgrade
Sofgen performed four upgrades in 2010, at Bank Leumi its existing channel technologies with Temenos’ UXP (User
in Panama, Ghana International Bank in London, Unicorn Experience Platform)‘edgeConnect’for use within its banking
Investment Bank in Bahrain and a Kenya-based microfinance division. Temenos’ UXP enabled the rapid development and
institute, Kadet. The company also project managed the deployment of a rich, dynamic, consistent user experience
successful four-siteT24 roll-out in 2010 and 2011 at Hypo Alpe across multiple channels for multiple users, and is accessible
Adria Bank and at Banco de la Nación Argentina (BNA) in the by any device - all managed from a single platform. Using
US. Sofgen was acquired by Indian giant, Tech Mahindra, in Temenos’ front office technology, Rubik’s Mutual Bank,
January 2015, with its 533 staff moving across to form a new Regional Bank and Credit Union clients were able to offer
business unit. a customer experience easily customized for corporate
Some banks are nervous about the use of third parties branding and customer segmentation. End customers will be
within core banking projects. The large non-specialists have able to access products and services across multiple customer
a reputation for lacking detailed expertise (banks tend to touchpoints and from their chosen device – desktop,
want resources that have ten years or more of experience, smartphone, tablet or smartwatch across any operating
that have carried out projects and have the battle scars and system (iOS, Android, Windows).
lessons to show for it, not ten people who have been through Canada-based digital banking start-up, Equitable Bank
a short accreditation programme). It has proved quite difficult focused mainly on savings, and underpinned by the Temenos
to pin down the partners about the exact level of expertise of suite of products, including the T24 core banking system. The
the impressive-sounding numbers of T24-related staff. Third implementation was set to take one year from the signing of
parties are also sometimes associated with projects that the contract in Q2 2014. This is a relatively straightforward
quickly go over budget, stemming from a rapid increase in project as the bank had adopted a ‘build and migrate’ route.
headcount. And there can be problems apportioning blame Australia-based Rubik Financial, a long-standingTemenos
when things go wrong. partner, began offering Temenos’ omnichannel platform,
There are a few partners with hosted versions of T24. Temenos Connect, to the local market. The agreement
These have included Rubik in Australia, Synchronet in Mexico, included the upgrade of Rubiks existing channel offering to
FDS in Indonesia and Capita in the UK, the latter buying the that of Temenos.
T24-based outsource business of AIB International Financial
Services (IFS) in late 2011 (a business which at that stage was
still seeking its first signings for T24). AIB IFS had installed
T24 and was seeking to build on a long-standing business

Universal Banking Systems Market Report | 545


Temenos has tended to face stiff competition in Africa and for a Inlaks Computers.‘We didn’t really have the right consultants
long while trailed I-flex Solutions in particular, as this company to work with, and we didn’t get the right support from the
broke out of India initially with Microbanker and then Flexcube. local vendor,’ he said. More and more consultants had been
Kindle, with Bankmaster, was also an early important player. put onto the project, which had seen the cost to the bank rise
There is a clutch of competitors in the French-speaking territories steeply.
and other Indian suppliers have also muscled in, while Nigeria/ There had been a cutover at Zenith Pensions Custodian
UK-based Neptune has also been busy in parts of the continent. Limited, a subsidiary of the bank where Uhunmwagho was
To a degree, some or all of these were able to under-cut Temenos. also involved. However, here T24 supported fewer than 100
As a result, Temenos has tended to play in the larger banks, users compared to over 7000 at Zenith Bank, and ‘getting our
plus South Africa. In the latter, via a complicated set of events, reports on the system is very, very cumbersome. This has not
it ended up buying its partner, Global Technology, back in the been very easy either. We have challenges there and we have
late 1990s. to get Inlaks to come round.’ In the end, for the main bank it
Particularly notable in Africa has been Kenya Commercial appeared that Zenith gave up and reverted to Phoenix.
Bank, which took T24 in 2007 to support 131 branches across Temenos has a smattering of customers across most
Kenya, Rwanda, Tanzania, Uganda and Sudan. The selection countries on the continent, including North Africa, albeit
wasadetailedone,withcarefulmonitoringandcontrol,andthe with many of these being long-standing and with no clearcut
involvement of PwC. This was the result of previous problems, stronghold (Ethiopia is probably the closest, with Nib
with the bank having earlier selected Infosys’ Finacle, only International Bank becoming the fifth taker in the country
to have the decision overturned when ‘irregularities’ in the when it signed in 2011). Temenos expected to ultimately
selection process came to light. Second time around, the lose three sites within Standard Bank (Kenya, Mozambique
shortlist included I-flex Solutions, Misys and TCS. The bank and Angola) as this bank set about standardising on Infosys’
took the Oracle version of the system to span treasury, retail, Finacle across its 16 African operations outside of South
corporate and wealth management functionality, and the Africa.
contract included ARC CRM and internet banking. The bank Major wins in 2016 include the implementation by the
also signed for some Shari’ah-compliant components to offer Sovereign Bank Ghana in 2016, with T24 now live in 10 sites
Islamic banking. in the country. Sovereign Bank is the first bank in West Africa
A first cutover was announced in 2009, for head office to use the Java-based TAFJ version.
in Nairobi and 145 branches, supporting around 675,000 In November 2016, Nigeria-based Sterling Bank went live
accounts, followed by its subsidiaries in the four other African Temenos T24, replacing the legacy ICS banks system from
countries, spanning another 75 or so branches. A system ICSFS. The platform was rolled out simultaneously across 185
called TC/3 from Indian company, CMC, was replaced. branches of the Sterling Bank. T24 is expected to support
Another Kenyan bank, the aforementioned Commercial Sterling Bank’s recently launched Islamic finance system from
Bank of Africa, went live around the same time, with a delay Path Solutions, iMAL, which went live in early 2014.
of only a few weeks, to replace the I-flex-derived Microbanker. In December 2016, Commerce Bank and the Housing
It was less good news from a parallel project in West Africa and Development Bank went live with Temenos’s core
at Zenith Bank in Nigeria. The project was suspended in banking system. The implementation project at Housing and
December 2007 following an attempted ‘big bang’ go-live. Development Bank involved the migrating of data for 1.5
Zenith, a commercial bank, was the largest bank in Nigeria, million customers across 64 branches over two years.
with over 250 branches. It was due to replace the Harland-
derived Phoenix. Imade Uhunmwagho, head of information
security at the bank, said that T24 lasted just three days after
cutover. ‘A lot of our transactions were not consummated on
the system. After three days our customers were complaining
heavily.’The experience of customers was ‘that they were not
seeing their transactions on their statements, they were not
seeing transactions that were done on their accounts. The
demands were really heavy and we just couldn’t cope with
them so we decided to switch back.’ He was critical of the
support Zenith received from Temenos and its local affiliate,

546 Universal Banking Systems Market Report |

Asia Pacific/South-East Asia

Temenos has been a strong player throughout Asia but runs into consulting firm, ISI-Dentsu, as the main third party.
some healthy competitors, some of which originate from the In China, Swedbank took T24 for its Shanghai operation in
region, particularly the Indian heavyweights. Selling into India 2006, but the stand-out deal was at Bank of Shanghai. Despite
itself has proved mostly fruitless, despite Temenos building up cost cutting elsewhere, Temenos made a big push in China in
a large development and support team in Chennai. 2003, opening two offices. Bank of Shanghai had around 180
Temenos also added to its regional resources in 2002 when branches and an ambitious expansion plan. A deadline of 2004
it acquired the Globus distribution business of long-standing was missed by a long way but in late 2008 it was announced
partner, PK Technology. As a result, around 18 staff moved that the bank had finally gone live on the Chinese version of
across in the Philippines, plus 20 in India, a small number in T24 for its retail business. Temenos sought to use the project
Brunei, and around 45 in Malaysia. to silence those who claimed that T24 could not scale for
Indonesia has been a good hunting ground for Temenos. retail banking and, even today, Bank of Shanghai is cited by
Bank Syariah Mandiri, the Islamic subsidiary of Bank Mandiri, the supplier as its largest T24 user in terms of volumes. It had
the largest bank in Indonesia, set about implementing T24 in around 18 million accounts and remained the biggest ‘by
early 2010. This win followed a similar deal in 2008 at Bank some distance’, said Gunning, in January 2015. There were
Rakyat Indonesia Syariah and another at Bank Andara. quite a few in the four to ten million range, he added.
The latter bank is pitching itself as a wholesale bank for Temenos has done well in Indochina. A reflection of this
microfinance institutions (MFIs) as well as being an MFI in its was a spate of go-lives in mid-2010. These were at Handico
own right. It took T24 to bring to market a shared core banking Finance, a corporate banking and project finance firm,
platform on an ASP basis, to offer to MFIs in the country. and Orient Commercial Bank (Oricom) in Vietnam, Lao
Separately, Andara implemented T24 for its own banking Development Bank in Laos and Bank for Investment and
operations, linked to a mobile banking system from South Development of Cambodia (BIDC). Lao Development Bank
African vendor, Fundamo. and Oricom signed with Temenos in 2008, and Handico and
As mentioned,T24 is offered in Indonesia on a hosted basis BIDC signed in 2009.
by Fortress Data Services. Bank Windu was the first to go live As stated, Temenos has not cracked India. However, it
with this, in August 2011. State Bank of India in Indonesia and did win a small deal in 2009 from a microfinance institution,
Bank Mayora, a universal bank in Jakarta with $90 million in Equitas, taking the microfinance and community banking
assets, were subsequent signings. version of T24, dubbed T24 for MCB, and has users in the
Temenos claims an Indonesian Model Bank version of T24, region. It has won a share of the deals in Pakistan, Bangladesh
‘with pre-configured products and best practice’, and also a and Nepal that have come up. One of the wins in Pakistan saw
‘proven track record’ in the country. This seems a fair claim. a cutover after a five-year project at Meezan Bank, with the
Another taker of T24 in Indonesia has been BPR Karyajatnika Islamic version of T24. According to the bank, the new system
Sadaya. (Release 8) was up and running by mid-2012. It followed
Japan has been a difficult country for non-Japanese where Silkbank had led. A 2008 signing, a first Silkbank
suppliers but the banks have tended to take packages for branch went live in March 2010, with a rapid ramp up after
international operations. In 2007, Temenos had success with this, so that 57 branches were live by mid-May, with the rest
T24 at Sumitomo Mitsui Banking Corporation (SMBC). This following in the next month or so. In total, this project covered
was for the bank’s 13 Asia Pacific branches (later seemingly 200,000 current accounts and 85 branches, and rule number
scaled back to eight), with the plan to have a standard platform one of Javed Edhi, CIO, was‘don’t change the systems: instead
across all countries for corporate banking. change your processes’. Allied Bank was another taker in the
The two companies had a history of working together as country.
Temenos had a win with the bank’s corporate lending business A fairly large user in the region is Agricultural Development
back in 2005. The system was selected for the latest project Bank of Nepal (ADBN), one of the largest banks in the country.
because it was felt it could cope with the local products and It went live with Release 10 of T24, at its head office in mid-
regulations of different countries. By September 2010, SMBC 2011, with its branch roll-out to follow. It rejected Malaysia-
was apparently live in Singapore, Malaysia, Vietnam and based Silverlake at the shortlist stage at the end of 2009 before
Australia. This was on an Oracle and Unix platform. starting an implementation in July 2010.
A similar multi-site deal with a Japanese bank came in 2010 In 2010,Temenos built on its base in Bangladesh with a win
at Mizuho. It was thought to be for up to 50 sites, seemingly at National Bank. ‘T24 is proven software and has very good
starting with a pilot site in Kuala Lumpur, with Japanese references,’ said Abdur Rahman Sarker, the bank’s MD. Prime

Universal Banking Systems Market Report | 547

Bank and Exim Bank were both live with T24 in Bangladesh, Other new takers in 2013 included Bank of Maldives. The
while a handful of other banks were implementing the system. bank’s board of directors approved the selection in spring, and
In Asia/Asia Pacific in 2011, there were two deals the go-live was scheduled for Q1 2014. It was also modernising
in Indonesia and Malaysia and one each in Azerbaijan, its ERP by deploying the Microsoft Dynamics ERP solution.
Bangladesh, China (Xiamen International Bank), Nepal In the first half of 2014, Temenos won a notable deal at
(Civil Bank) and Taiwan (Landbank). State Bank of Vietnam, the country’s central bank, as part
There was further progress in Bangladesh in 2013 with a win of a broad modernisation project dubbed ‘Financial Sector
at a start-up bank, NRB Global, gained alongside local partner, Modernisation and Information Management System Project’
Datasoft Systems. NRB Global is a niche bank, offering banking (FSMIMS). This was under the auspices of the World Bank.
services to Bangladeshi expatriates (predominantly in the UK), Local integrator, FPT Information System, won the deal to
who are also the main benefactors of the bank. Farmers Bank supply,implementandintegratethecorebanking,accounting
and South Bangla Agriculture and Commerce Bank, another and budgeting software. The contract was understood to be
pair of Bangladeshi banks, finished theirT24 implementations worth $8.84 million. Polaris and the incumbent vendor, South
in 2013. Temenos in total had nine customers in the country Korea-based Hyundai Information Technology, were also
by this stage. evaluated at the shortlist stage.

In Australia, Temenos has had a rocky time, with a couple of It is not all bad news in Australia. Rabobank finally provided
early, high profile failures and one more of late. This meant it a live site in the country for Temenos, with cutover as well for
has struggled against Australia-based FNS with Bancs (now New Zealand, in 2006.
TCS but still a dominant player in Australia) as well as one or Temenos has also gained ground in Australia via Rubik
two other domestic suppliers plus other incursors (Fiserv has Financial. It was putting together a hosted platform and
done reasonably well in the past, while Infosys, SAP and Oracle selectedT24 to reside with a range of acquired components for
FSS won the big deals that cropped up in the last few years from the low-end of the Australian and New Zealand markets. The
ANZ, CBA and Westpac respectively, albeit for international company undertook a selection that included the mainstream
operations in the case of ANZ/Infosys and Westpac/Oracle FSS). Indian suppliers, plus Sungard and Open Solutions. Rubik’s
The initial two failures were at Bank of Queensland and initial idea was to offer a retail solution, said CEO, Brent
RAMS Home Loans; a later one came at Queensland Treasury Jackson. However, feedback from potential customers
Corporation (QTC). suggested the need for a broader offering and this played
At QTC, the Queensland government’s central funding into the hands of Temenos, giving Rubik‘a range of directions
authority and corporate treasury services provider, its T24 beyond our original plans’. He was not deterred by Temenos’
project was cancelled in early 2012. Temenos provided IBS problems in the past in Australia. The aim was to offer a‘bank-
with this statement: ‘Following a strategic review of the in-a-box’ solution.
project’s objectives, which identified a desired change in Having gone public on the tie-up in October 2008, Rubik
the project’s direction, QTC and Temenos have agreed that announced its first and second customers for the service
T24 will no longer be a part of QTC’s systems strategy. Whilst in the first half of 2009. The first was Maleny and District
the leveraging of our standard packaged software platform Community Credit Union (MCU), with 5500 members. Areas
as a component of the overall solution did not prove in this of focus, as well as replacement of the core back office, would
case to be the most appropriate, we have been very pleased include mobile banking, CRM and card management. By virtue
nevertheless to have had the opportunity to assist QTC with of being the first, MCU was intended to work with Rubik on
their IT renewal project, and have enjoyed a constructive and localisation of T24 for the Australian credit union market. ‘By
mutually amicable relationship.’ the time we are complete, we will have probably 80 per cent of
QTCspent$22milliononitssystemmodernisationventure. what any other customer groups will have,’ said Jackson. This
Of this, $7.5 million was paid to Temenos and a similar amount included links to ATM and Eftpos networks. A tentative go-live
went towards internal expenses. T24 had been acquired by was set for November.
QTC in April 2009, with the objective of replacing its legacy, in- The second taker was First Chartered Capital Corporation,
house developed software by July 2010. At the time,Temenos’ which was a larger player than MCU but took much of the
Andreades had referred to QTC as ‘a prestigious client’ that same functionality. However, shortly after the announcement
would strengthen Temenos’ position as the region’s ‘leading of this deal, First Chartered Capital Corporation was taken
core banking solutions provider’. over by another entity, Firstfolio (a mortgages and financial

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services distribution business). According to Jackson, this and ‘a lot of caution over new investments’. There were over
happened before all the approvals came through to kick off eight core system selections in Australia in 2010, he said,
the implementation and‘the project was shelved indefinitely’. but following changes in management and/or priorities
MCU cut over during the last weekend of January 2010 and mergers only one was actually completed (Credit Union
with the T24 core plus Rubik’s own card system, internet and Australia, which selected Bancs from TCS). Rubik was not
mobile banking platform, cheque management system and included in the selection at CUA, he added, as the credit union
collections system. As well as its domestic hosted offering, wanted a system on IBM zSeries.
Rubik is also focusing on sales of its own systems into the T24 As mentioned, Rubik gained another deal for its hosted
customer base. ‘There is a standard interface and it is easy T24 in the form of Uniting Financial Services, the treasury
to get data into and out of T24,’ said Jackson. It had gained a arm of Uniting Church. This went live in 2012 and a second,
number of deals of late with CWX, the collections system which unnamed institution, was claimed as a new customer by Rubik
Rubik acquired from a troubled fellow Australian company, in December 2013.
Admerex.T24 user, Bank Al-Bilad in Saudi Arabia, cut over with Independently, ME Bank, a community bank in Australia
this in early 2010 and Jackson said Rubik also had a couple of with links to the country’s trade union movement, was
letters of intent with Middle East banks. engaged in a scoping exercise with Temenos in Q1 2012, and
By mid-2011, MCU remained the only taker of Rubik’s T24 duly signed, with a multi-phased project starting, including
offering. Jackson attributed this lack of traction to the state a number of components and with an overall bank-wide
of the market in Australia, characterised by multiple M&As transformation slant.

Europe-Central, Eastern
Central and Eastern Europe has not been the strongest for handle currencies, and the need for shadow accounts for
Temenos. It has had some successes but also some less than foreign clients.
successful projects and has faced strong competition from other Temenos gained a first win in Russia in 2000, at Interprom
international vendors or local players. Bank. Temenos then gained a major deal in late 2003 from
Some deals in the region have been inTemenos’traditional Menatep Bank. This was for core retail and for the Oracle
stronghold of treasury/corporate banking. 2000 wins at BRE in and Hewlett-Packard HP-UX version. The deal was strongly
Poland and Nova Ljubljanska Banka in Slovenia, for instance, influenced by the T24 version of Globus, said Koukis. Prior
fell into this category, the latter using Bancs from FNS on the to this, Globus had the functionality for high-end retail but
retail side but opting for a separate treasury solution. not the technology. The ability to spread processing across
MKB in Hungary experienced a long-running, high profile servers to bring resilience and the elimination of the end-of-
project, as mentioned.The Hungarian ForeignTrade Bank had day were major factors, he felt. One other factor was Temenos’
been one of a clutch of users of the Winter Partners-derived local presence. While it was cutting back elsewhere around
IBS-90. It signed in 2001 for Version G13.2 of Globus but the the globe, it continued to build its resources in Russia. It had
bank was not overly impressed. It cut over for treasury at the acquired its partner, Avicomp, and by now had 60 staff in the
end of 2003 and was pressing on with retail by mid-2004. country.
This was ‘very poor quality’, said deputy CEO, Csilla Bolla. The total contract value was in excess of $13 million, of
There were lots of bugs in the core version of the system as which around half was licence fee. The bank had around
well as in changes made by Temenos for the bank, she said. 300,000 accounts and 60 branches. It had aggressive plans,
Although the cutover for treasury had been on time, a lot more with a stated aim of reaching five million accounts over the
effort was needed than expected for testing. This period was next three years. There was a need for Russian accounting,
‘really tiresome’, she said. By mid-2006, the problems at MKB with this supposedly already built for two existing clients in the
seemed to be mostly in the past and it had gone live with T24. country (presumably one of which was Interprom).
In some countries, the anomalies of the local market have In fact, Russia has proved highly problematic for
proved difficult for outside vendors. RZB signed a contract in Temenos, as for other vendors. There have been bank
1999 covering a number of sites in central Europe, spanning closures and takeovers, while it has also proved difficult to
bothwholesaleandretailbanking.ThefirsttogolivewasPoland, meet country-specific requirements, particularly around
to be followed by Croatia, although the plug was pulled on the accounting. In Q1 2012, Russia-based National Bank Trust,
latter. The bank was defeated by the extensive customisation one of the earliest takers in the country of Temenos’ core
that would have been needed for that market. The anomalies banking system, was believed to have pulled the plug on
included the revaluation of domestic loans, the way banks the system. It continued to run a host of domestic solutions,

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including those of New Athena, R-Style Softlab, CFT also a financial incentive: a discount on the licences for the
and Diasoft. group. Rostelecon, a local IT consultancy firm, acted as the
TemenosappearedtobeleftwithjusttwousersinRussia,AF main contractor and integrator, and there were no issues with
Bank and Banca Intesa. The former is the Russian subsidiary resources.
of Kazakhstan’s Astana Finance. ‘We are the first successful Temenos has a reasonable spread of users in parts of central
full T24 implementation case in Russia,’ said Aidar Zubairov, Europe. One fruitful country has been Azerbaijan, where
chairman of AF Bank, in late 2010. The system had been Amrahbank signed as its fifth T24 customer in 2009, after
adapted to Russian accounting and regulatory requirements National Bank of Azerbaijan, Texnika Bank, Azerigazbank
and Zubairov believed that the development could be now and Bank Standard.
applied by Temenos to create a T24 Model Bank for Russia. In central Europe, one notable project has been at the
‘I was sceptical at first, especially when you look around and previously mentioned Austrian pioneer, Hypo Alpe Adria
don’t see any successful examples in Russia, and when you Bank. Ernst Fanzott, project head and a director at ZIS d.o.o,
look at Temenos’ projects in Kazakhstan which are several the bank’s IT services subsidiary, said ‘Temenos’ role from
years into the project with very little accomplished. And you the beginning was very limited – too limited.’ This changed
think: how will we manage? But we analysed the issues and as the project progressed. ‘Temenos is a vendor that needs a
mistakes and decided that we could do it. And I believe that lot of attention. It was a bit underestimated and we then had
the system can now be packaged and sold to other banks in close contact, nearly daily, at all levels.’ The supplier ended
Russia.’ up with two to four people onsite and there was a dedicated
The implementation at AF Bank took just nine months Temenos project manager. Temenos had been‘very strong in
(which involved a lot of work on evenings and weekends). emergency mode’ – in other words, when there had been a
Zubairov attributed this to AF Bank’s dire need to modernise problem –‘but there is some improvement potential with their
its core software, as the previous DOS-based home-written standard service levels’, said Fanzott. He felt the latter were not
system was ‘from the last century’. The bank had no choice particularly standard, reflected in the fact that Temenos’ help
but to succeed, he felt. The IT modernisation was prompted desk often did not know the details of the bank’s agreement.
by the arrival of new shareholders at the bank around three After a rocky first cutover for Montenegro in November 2009
years earlier: it was sold to Astana Finance by Russia’s Alfa- (a small operation with around 230 staff, 31,000 customers,
Bank. At that time, Astana Finance was already in the process 38,500 accounts, 7000 loans and ten branches), a second
of deploying T24 at its headquarters, ‘so for the purposes of one for Herzegovina went much more smoothly, so the bank
standardisation and efficient management it made sense looked to be on track with a project that was ultimately to span
to go for the same solution’, explained Zubairov. There was Bosnia and Herzegovina, Montenegro and Serbia.

Europe is where the company started and remains the needed an account-based system, especially for emerging
largest geography in terms of sales and installed base by markets, where we effectively have stored value accounts,’
some distance. There have been tier one bank takers for said Luup CEO, Thomas Bostrom Jorgensen (however, he did
departmental and/or international branches, such as Deutsche not remain to oversee the projects as his departure from Luup
Bank for wealth management. There are mid-tier banks came shortly after the selection).
similarly for niche areas, such as Danske Bank for corporate Luup took the Microsoft SQL version of T24 on Windows
lending (a 2010 project to replace a proprietary system, (Luup’s existing platform ran on Microsoft .Net). The breadth
with a hub in Denmark to ultimately support ten countries). andcomponentisationofT24wereattractions,saidJorgensen.
There are plenty of users among private banks or the private This was important, he pointed out, as Luup had a wide range
banking operations of larger ones. There are also users purely of customers, from Deutsche Bank, with a corporate banking
for treasury and corporate banking. slant, to branchless solutions in Asia. One opportunity might
An unusual profile of taker was mobile payment specialist, stem from becoming part of Temenos’large client base, with a
Luup, which took T24 to form part of a new platform to lot of T24 users constituting potential partners for Luup.
underpin its services. The organisation went through a formal There have been some long-standing and successful
selection process, including an RFP. Microsoft’s Biztalk forms relationships with banks in Western Europe, including EFG
part of the solution, providing Business Process Management Eurobank, an early user going back to the EBS days, and
(BPM) capabilities on top of T24. Luup initially considered remaining a customer since then, and Schroders.
both core banking and payment systems. ‘We found we Banks in the Netherlands have had a tough time with

550 Universal Banking Systems Market Report |

Globus/T24. Following on from the ING failure, another In Southern Europe, Temenos has picked up some of the
troubled Dutch episode came at Friesland Bank, where a relatively small number of deals that have arisen. An important
project was curtailed in 2006 with parts of the Globus back customer was Caja de Madrid. The syndicated lending
office and internet banking apparently live but with the bank functionality of Globus/T24 was developed with the bank,
writing off much of the front, middle and back office plans which took the system to cover its international operations,
amounting to costs of €16.9 million. The bank subsequently focused purely on corporate banking. The bank’s Javier
went live with Flexcube. A couple of other Dutch projects did Sanchez, head of international branches systems department,
not go to plan. said in late 2011 that the result was ‘full syndicated lending
In the UK, small but strategic wins came in 2006 in London, functionality that covers most needs of the market’. What
at Ghana International Bank and Bank of East Asia, to differentiated this offering, he felt, was that it was built from
replace Misys’ Midas and Equation respectively. At Ghana the ground up specifically for syndicated lending rather than
International, Francis Aidoo, IT manager, said MidasPlus adapted from a bilateral lending solution. The bank was a
(Misys’ revamp of Midas) would have been ‘ideal’ for the bank reference site for this functionality of T24.
and would have avoided a lot of retraining, re-equipping and In 2001, the bank’s first overseas branch, in Miami, had
implementation stress but the terms at the end of the fixed gone live with the system. A new branch in Vienna followed
licence were onerous and the vendor’s attitude was‘arrogant’. in 2007. In 2009, T24 replaced a system from a local vendor,
As a result of the change in core banking system, the bank also Exictos, in the existing branch in Lisbon. ‘Having the same
had to move away from Misys’ trade finance system, Trade system across the international locations allowed us to
Innovation, despite being happy with its functionality. An RFI centralise support and hardware in Spain,’ said Sanchez. The
was sent to Misys, I-flex, Temenos, Fiserv, Infosys and Financial bank then planned to upgrade to the latest version of T24 for
Objects. its international operations. The bank was the oldest savings
The UK is a market where, once more, not everything has bank in Spain and was going through a merger with six other
gone to plan. A project at what was to be a casualty of the savings institutions – Caixa Laietana, Bancaja, Caja Insular de
financial crisis, Dunfermline Building Society, was particularly Canarias, Caja Segovia, Caja Ávila and Caja Rioja – to form the
fraught. The Society signed for Globus in 2002 and was high country’s third largest financial services group, the ill-fated
profile because it would have been the first to use the system Bankia, which in early 2012 became a high-profile casualty of
to support UK mortgages and also because it planned to use the financial crisis in Spain.
the system to support an outsource service for other building One deal that started in Europe but had a global nature
societies. In the end, the Society seemed to get at least part was in the first half of 2008 at JPMorgan Chase (JPMC). This
of T24 running roughly six years later and nine months after was part of a $30 million investment by the bank in its global
a new contract was signed, following a ‘reprioritisation’of the treasury management and liquidity services technology. T24
project in 2007.This about-turn cost Dunfermline £9.5 million, was taken for deployment across the bank’s international sites,
an amount written off by the Society. T24 finally went live to as a Demand Deposit Accounting (DDA) system, providing a
support the 34-branch Society for savings and investments, central platform for its global services. The decision followed
but not mortgages. By then, the outsource plans had been an extensive system selection, which lasted over a year. The
abandoned long ago. estimated timescale was three years, with a detailed migration
There has been mostly better news since then, including plan and rigid timeframes for various phases. It would result
the deal at Metro Bank. Temenos also had a new licence in consolidation of a number of different systems. The system
win in the country in 2011, at Aldermore Bank. The system was only for JPMC’s non-domestic business, with initial pilot
replacement took just six months, with cutover in the first sites in Europe and Asia Pacific, with South American divisions
half of 2012. CU Plus, an Ireland-based partner of Temenos, to follow.
assisted with the implementation but in 2014 it wound down JPMC went live for Madrid and Manila on 1st March 2009,
its business, transferring some aspects to Temenos. CU Plus’ followed by Dubai and Singapore in August. London and
core banking software clients – a couple of credit unions in Vietnam were then converted, with cutover on 1st May 2010.
Ireland and one in the UK (6 Towns Credit Union, which had This meant 75 to 80 per cent of customer accounts, balances
recently gone live) – were also transitioned. and transaction volumes were on the system, said Stan Dietzel,
Wipro seemed to land its first deal in Europe for the hosted the bank’s MD, treasury services. There was still a fair way to go
offering of T24. This was at Edinburgh-based greenfield at JPMC, including 14 UK subsidiaries, India and Australia. The
bank, Scoban, which was expected to launch in mid-2014. goal at the outset had been to finish in the first quarter of 2011,
Scoban planned to specialise in private banking and wealth said Dietzel, but this would not be met, largely because JPMC
management. However, the deal did not materialise and had added 16 operations since the project began, including
Scoban (Hampden & Co, as it has been rebranded) signed three via Bear Stearns and four when it bought Nordea’s
with Oracle FSS for Flexcube instead. By late 2014 it was still custody business.
gearing up to open for business. ‘For the most part, T24 has lived up to its reputation,

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although there is always a bit of overselling,’ said Dietzel. Temenos had a little more traction in Western Europe than
The Model Bank approach had been fairly successful and Oracle FSS in 2011, aided by its acquisitions. Its takeover
delivery took fewer than 90 days. All customer information of Viveo appeared to have given it an edge in France, with
is taken from JPMC’s global Customer Information File, three wins here in 2011, and it finally gained the recruit from
to the extent that JPMC has removed the ability to input the German base of Actis, Maple Bank. The other European
customer details into T24. Where possible, all operations T24 wins were at Aldermore Bank and Russian Commercial
use the same instance of T24. This was not feasible for Bank in Cyprus. Banca March and Nordea Bank, both in
Malaysia, so it has its own implementation, although Luxembourg, were the two Western European T24 wins for
this is a standard version. The same might be needed for 2012.
Saudi Arabia. 2013 saw a notable deal with Russia’s VTB Group for its
Longer-term, the jury was out on whether the single corporate banks in Europe. And in Finland, Aktia Bank signed
instance was practical for all 80 to 90 JPMC companies, for the retail version of T24 Model Bank on a hosted basis. It
said Dietzel, because it might not allow sufficient time for would replace the bank’s legacy IT set-up, which was originally
maintenance and code releases. The numbers of interfaces built by domestic vendor, Samlink, for the country’s savings
and fields had been significantly reduced and this was banks. The bank was expected to pump €30 million into the
handled through Webmethods’ iBus middleware. JPMC project, culminated with a big-bang in late 2015. With the
had not converted history, so had only taken balances and new set-up, the bank was predicting running cost savings of
future dated transactions, and there had been strong central €5 million a year. It would also give Aktia the opportunity to
governance. JPMC had sought consensus where feasible, develop more efficient processes and launch new products
said Dietzel, but wanted to move fast so had made central and services across all channels – including branch, phone,
decisions where necessary, with these backed by the steering internet banking and mobile – much faster.
committee. He wanted to now turn the roll-out into a strict For wealth management,Temenos not only has breadth of
regime. The repetitive, machine-like approach is something functionality but also depth, more so than its direct universal
JPMC has honed on the retail side with its US acquisitions. rivals. Private banking was an early area of diversification from
‘It isn’t pleasant but it is necessary.’ The relationship with the treasury and corporate banking roots of the system.
Temenos had been strong, he said, although sometimes the Some work was done here as a result of a multi-site deal
supplier acted as a‘great recovery company’– in other words, signed with Kredietbank (KBC Bank, today) in the third
it had responded well to issues when they had arisen, but he quarter of 1997. Also important in this sector was a deal signed
would likeTemenos to sometimes be more proactive, heading in the second half of 1996 from American Express Bank.
off problems before they occurred. Globus was taken for private banking alongside a separate
Another multi-site deal came in 2009 at the remnants of system for retail, Prologic’s Ovation. A ‘model branch’
existing customer, Fortis, with Fortis Nederland adopting T24 version of Globus was built through a project spanning the
for UK, continental Europe, Singapore, Hong Kong and the US UK and Singapore. This went into the Geneva operations,
for corporate banking. Fortis had been a significant win for then Luxembourg and London. The project went slower than
T24 three years earlier, building on an existing relationship planned but there seemed to be additional live sites in Jakarta
with Temenos, with the system taken to support the bank’s and other European ones including Paris and Monaco.
retail banking across its European operations. The system Another example of a private banking deal was at
was intended to serve over 15 million accounts at over 1600 Compagnie Monégasque de Banque, a Q1 2005 signing to
branches spanning a number of countries. The new project replace the Samic system in its Monaco operation (although it
was initially focused on the Netherlands, where T24 was seemed this was a project that did not run its intended course,
expected to go live by the end of 2008. T24 was taken to so that by May 2007 Samic owner, SAB, was claiming the bank
replace a number of different applications. had returned to its fold).
A fair few of the other Western European deals in 2010 Particularly notable in this sector was a win in late 2006
came as Temenos started marketing to the user bases of at Deutsche Bank, touted as Temenos’ largest ever. T24 was
acquired companies. Monte dei Paschi di Siena in Italy taken for wealth management within its private banking
and Bank Hapoalim in the UK came from the IBIS base, division after a one-year selection, with Temenos against
for instance, as mentioned. In Malta there was a win at Avaloq at the shortlist stage. Not that Temenos had things
VoiceCash Bank plus two off-the-record deals. GE Capital all its own way within the German bank, which also signed at
Woodchester signed in Ireland, there was a clutch in France around the same time for Flexcube for a number of country
– La Compagnie Financiere Edmond de Rothschild, Union operations, seemingly including China and Russia, and in Q1
Tunisienne de Banques (both ex-Viveo) plus one other – 2010 it went with TCS’s Bancs for a major 52-site project for
and the aforementioned, Java-centric Swissquote deal in international operations, withTemenos believed to be among
Switzerland. This added up to a better haul in Western Europe those beaten to the deal.
than in 2009 (when there had been one in Italy, two in the UK, Deutsche Bank then seemed to reverse its plans for wealth
one in Germany, and three in France). management. Having gone live in Switzerland in mid-2013

552 Universal Banking Systems Market Report |

with Avaloq, Deutsche Bank Asset and Wealth Management CorporateSuite. Additionally, in October, the UniversalSuite
(DAWM) chose to outsource its core banking and business front-to-back software solution was selected by Bank of
processes in Singapore and Hong Kong to Avaloq as well, in Ireland for retail, commercial and corporate banking.This deal
the second half of 2014, using Avaloq’s newly created business includes Temenos’flagship core banking solution, T24, as well
process outsourcing (BPO) centre in Singapore. The set-up as a omni-channel support, analytics and risk and compliance.
was then understood to be extended to Deutsche Bank’s UK Banque Internationale à Luxembourg (BIL), the largest
operations (outsourced from Switzerland). This was the only bank in Luxembourg selected Temenos to replace its legacy
live site for T24. systems as a part of its digital transformation process. The
The aforementioned Schroders has been a long-standing bank decided to go with a combination of Temenos’ Retail,
and proactive user in the private banking market. As stated, it Corporate Banking and Private Wealth Suites, alongside its
was the first to prove T24 in a centralised mode, cutting over in flagship T24 core banking system
the first half of 2007 in its new Private Banking Service Centre In March 2017, Fortuna Banque SC Luxembourg selected
(PBSC) in Zurich, supporting its mainland UK, Guernsey and Temenos’ Retail Suite which includes the core banking
Swiss private banking subsidiaries. platform, T24, along with a host of other digital solutions.
In August 2016, BACB, the London based provider of trade Temenos has an established presence in Luxembourg, which
finance and treasury services to Africa and the Middle East, was an important factor in Fortuna Banque’s selection process.
decided to replace its existing legacy systems with Temenos’

Central and South America

The first route for Temenos in Latin America was via Modus who became president of Temenos Americas before leaving
International, the company set up by the original developer of the company in Q1 2012. He felt there were about 80 banks
Globus, Ernst Hennche. In Temenos’ first year in existence, Latin in Brazil that would be well suited to T24. Existing user,
America contributed eleven of the 29 new-name deals. However, Bancoldex in Columbia (see below), has branches in Brazil,
over the years there was a considerable attrition rate, largely and Bank of China, one of the largest T24 users, also opened
due to closures, mergers, and acquisitions, so that a fair few of a branch in the country.
the takers dropped off the Globus user list. There were Globus In Columbia, Bancoldex provided a first live site in the
wins in Ecuador, Peru, Argentina, Brazil, Cuba and Panama. country for T24 at the end of 2010, when it went live in a first
However, by 2005, most of the survivors were in Ecuador, with phase for trade finance. The state-owned commercial bank
a couple in Panama. offers mainly second tier loans to companies, with a focus
Modus (or Fisa, as it became) added a number of on importers and exporters. ‘This is the most important
enhancements to Globus. In particular, it built off-line technology project Bancoldex has undertaken since it was
processing functionality, a necessity due to the poor telecoms founded in 1992,’ said Jorge Garcia, COO of the bank. T24 was
infrastructures of many Latin American countries. In 1997, chosen in 2008 and was to cover domestic lending, foreign
it launched a full retail branch system. The first phase went trade finance, treasury, deposits, investment and collections.
into two small Quito-based banks in the second half of 1997. The bank was initially planning a big bang go-live but switched
It was interfaced to Globus so that, for instance, Globus to three phases. The second phase, which started in early
balances could be accessed by the teller. Modus gained a first 2011, covered domestic lending, ‘which is the largest part
commercial sale of the full branch system in the third quarter of the bank’. The third phase would be centred on treasury
of 1997 when Pribanco in Panama signed for this, with Globus operations and accounting.
again part of the deal. Garcia viewed the project after the first phase as successful
A number of Fisa staff had worked on projects in Poland, to date, adding that support from Temenos was ‘very good in
Croatia and elsewhere, and Fisa continued to provide staff general although there are some response points that could
to Temenos on a contract basis. Hennche said that Fisa had be improved’. ‘Bancoldex is confident it is working with the
‘set up a completely independent effort for this business, to best core banking system,’ he added.
avoid conflicts’. Temenos then acquired this part of Hennche’s As for the rest of Latin America, Temenos had been
business, so that twelve or so staff moved across. ramping up resources, Green said. Temenos had seen most
Brazil is another country of interest. Votorantim, a success in the region in the years when it had plenty of local
private bank based in the country, is a user of T24. One resources, he believed, but a few years later it had moved to an
partner, Capgemini, has a good presence in Brazil through offshore support model (although ‘we never completely left’,
its acquisition of CPM Braxis, formerly the largest Brazilian he added). This may have coincided with the drop-off in sales
IT services company, in 2010. Temenos and Capgemini were in 2008 and 2009, as well as a few banks’decisions to abandon
responding to RFPs in the country together, said Greg Green, T24 in countries like Mexico.

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Temenos started to head back and began to grow its ventures were at Banorte (a 2008 deal), Union de Credito
regional help desks in Ecuador and Costa Rica. A Spanish- Nuevo Laredo (2009) and a long-standing customer, Banco
language Model Bank is available. Green believed that the two Autofin, which was in the process of upgrading.
clients signed in the region in 2010, Larrain Vial in Chile and The total number of Temenos’ T24 Mexican core banking
Inteligo Bank in Panama, were both reassured by this. clients is 14, the highest for the vendor in the region, but having
In Argentina, the solitary T24 user is Banco Credicoop, peaked in 2007 with six new wins, there was a downward trend
the country’s largest co-operatively-owned bank. The bank in sales since (three in 2008 and one in 2009, none in 2010
was live on a number of modules by early 2010, confirmed the and 2011). There have been deals in Mexico in the last few
vendor, and would continue to roll out modules throughout years but they haven’t been going Temenos’way.‘Mexico was
2010/11. our hottest territory for a few years: the regulatory changes
The Chile banking market has provided Temenos with resulted in many de-novo banks coming to the market, and
a few contracts. The first were signed in 2004, with Grupo this was the bulk of our clients then,’ explained Green. ‘But
Altas Cumbres (GAC) and Fondo Esperanza, although both when the US market tumbled, Mexico got hit the hardest
sites are inactive today. The deal at GAC covered around six of the entire region and there was a significant slowdown in
countries of the group’s operations and would have involved opportunities.’
a regional system integrator, Sonda. However, according One notable site in Mexico is the first instance of banks
to Temenos, the implementation didn’t go ahead due to migrating their core banking services onto a public cloud.This
disagreements regarding the platform between the local was intended to see T24 hosted on Microsoft’s Azure cloud for
heads of GAC in different countries and later a sale of a number twelve microfinance institutions (MFIs) by the end of 2011.
of entities. The twelve institutions were all clients of Synchronet, a joint
The Caribbean coastline region has seen a drop in sales venture set up by Temenos and a government-owned second
for Temenos in the last few years. Green described the activity tier development bank, Fideicomisos Instituidos en Relación
there as‘very cyclical’.The vendor scooped a spate of contracts con la Agricultura (FIRA), in 2003. ‘We think this is an historic
in the mid-2000s,‘but there is nowhere near the activity in the announcement, which highlights the growing momentum
Caribbean as in years passed’. A number of banks were gearing behind Azure in the global banking industry,’said Joe Pagano,
up for T24 in 2010, such as Honduras-based Banca Ficohsa, MD of banking and capital markets at Microsoft.
which took the system early in 2009. Five MFIs were initially involved in migrating their version
A Caribbean conglomerate, RBTT Financial Group, has of T24 to Azure. This also involved an upgrade to Release 10 of
had a lengthy T24 roll-out (the project dates back to 2005). T24 for microfinance, and a move away from jBase to Microsoft
‘We have recently got another major portion of RBTT live,’said SQL. The MFI which made most early progress was Soficam,
Green in the second half of 2010. This latest go-live covered which started running on Azure at the beginning of February
the group’s major operations in its home country of Trinidad 2011. This was to be followed by a couple of months of testing
and Tobago. before moving into live production. ‘We are happy with the
In Mexico, there has been good sales success but some process so far,’ said Jose Antonio Cortes, COO of Soficam.
delivery issues. Banco Compartamos, which started its Cortes expected to see cost savings resulting from the
project in 2005, confirmed that the implementation was pay-per-use model of the cloud offering. The other four
abandoned in 2010, but declined to go into details. At the time microfinance firms whose conversions to Azure were under
of the deal, Compartamos was a microfinance and consumer way were Sofol Tepeyac, Grupo Agrifin, Findeca and C. Capital
finance group working on obtaining a banking licence, and Global. The remaining seven Synchronet customers would
it took T24 ‘with the idea to implement eMerge’ (now T24 for follow, and FIRA intended to pitch the service to its other, non-
MCB), according to the vendor. Compartamos was looking at Synchronet, clients. Julio Cesar Roldan, CIO of FIRA, said: ‘We
‘an extremely specialised type of family lending and had very have different types of customers, some of whom are very
niche requirements’, according to Temenos, but ‘despite this, small, offering just one or two types of product. They would
Temenos and the bank worked together on the project’. Green never be able to buy a solution like T24 otherwise.’
said he was not aware of the exact reasons for Compartamos Overall, Latin America has been far quieter for Temenos in
curtailing the implementation. recent years than in days gone by. There were only two wins
Another known Mexico-based case of shelving T24 was in Central and South America in 2010 (one in Panama and
Banco Interacciones, which decided in 2009 to build its own the Larrain Vial deal in Chile) but those two were at least an
core banking system after a four-year effort to installTemenos’ improvement on Temenos’ solitary Mexican deal in 2009.
offering. In early 2014, Temenos had its largest deal on the
However, a number of other projects in Mexico (the continent for a long time. This came at Venezuela’s largest
majority of which were initiated from around 2005 to 2007) banking group, Banesco. Ernst & Young advised during the
appear to have progressed. According to Green, all but three selection and he system to be replaced is Datatpro’s IBS.
banks were live withT24 by the end of 2010.The three ongoing The core will cover all main operations at the banking group

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(retail, corporate and treasury), front-to-back office, and the deal includedTemenos Connect for mobile/online banking, Insight
BI and AML software. The deal covers an extensive domestic network of 440+ branches, plus the group’s subsidiaries in Panama
and the Dominican Republic. There would be a phased roll-out once the requirements for all three countries had been finalised
and incorporated ‘into a single Banesco model’. The first site was expected to be live by the end of 2015 or early 2016. Temenos
was working with the bank directly on the implementation, with Ernst & Young providing some assistance in the gap analysis
and management consultancy.

Middle East
An important early win in the region was a multi-site deal in 1996 it visited other Temenos users in the country such as Cairo
from Mashreq Bank. It had originally looked at Globus purely for Amman Bank and Capital Bank of Jordan, both of which have
London but then decided to consider it for all of its operations. had long-standing projects to implement the system.
Globus went live in head office in the third quarter of 1997 followed It was relatively quiet time in the Middle East (as in most
by Mumbai and Delhi, then London, with other sites following other regions) in 2010, with Temenos bringing in four deals
during 1998. By the start of 2000, Globus was live in eleven out of for the second consecutive year. 2010’s haul was two in Iraq,
14 sites within the bank. However, of late, for universal banking, Qatari Islamic Bank (QIB) in Bahrain and another in UAE.
Mashreq Bank has been implementing Flexcube. QIB had a rocky ride. ‘All attempts to implement the
The second quarter of 2007 brought Temenos’ first win in system failed,’said the bank’s CIO, Ghazi Qarout. Qarout came
Oman, with Bank Muscat selecting T24 to support its retail on board after these attempts, moving from Al Hilal Bank in
and corporate banking operations, replacing a 20 year-old in- Saudi Arabia where he’d had experience of implementingT24.
house system. What allowed QIB to stick with T24 was Qarout’s belief that the
The important, difficult project at Saudi Hollandi has system had improved since QIB first took it. Between Release
already been covered, so too the very late, ambitious project eight of T24 and Release 14, ‘the quality of Islamic products in
at BLF in Lebanon. Alinma Bank, the largest fully Shari’a- particular has improved’, he said, adding ‘all gaps we had to
compliant bank in Saudi Arabia by capitalisation, cut over address at my previous bank are now in the core’. Rather than
in late 2007. Infosys and TCS were beaten at the shortlist having a perfect solution to start with, Qarout put stock in
stage for what was effectively a start-up bank. Its over-riding Temenos’ ability to support the bank over a long period. ‘This
aim at the start of the selection was to find a system that is what counts,’ he believed.
had best support for Islamic banking across a broad range A success in 2011 at one of the largest banks in Saudi
of areas, including treasury, retail, corporate, investment Arabia, Samba, stood out. Work here started in September,
and wealth management. Alinma’s Yasser Aloufi, T24 and and the project was to be carried out in phases over five years.
IT project manager, disclosed that the configuration of the The entire project was estimated to be worth $100 million but
solution had been challenging, putting this down to the little else was known about it.
fact that core implementation was ‘huge’, particularly as it In 2012, Temenos’ haul comprised Al Khaliji Bank in Qatar,
was a multi-company version the bank was installing. There the aforementioned Jordan Ahli Bank, and Saudi Arabia-based
were therefore some teething issues in the batch end-of- United Installment Company. 2013 added Sharjah Islamic
day process and accounting. ‘We incurred some time loss Bank to replace Misys Equation and Trade Innovation, plus a
because of the Model Bank,’ he said, pointing out that at the deal in Bahrain.
time Temenos did not provide an Islamic Model Bank. He Israel’s major banking group, Bank Leumi, signed for
believed other Islamic banks could therefore benefit from the Temenos T24 core banking system and Temenos Connect
work Alinma put in with Temenos on this front. A‘soft launch’ for digital channels. The bank adopted a gradual renovation
for bank staff happened in March 2009, followed by a full strategy, with the first phase being a new digital bank to be
cutover later in the year. launched in Israel, underpinned by theTemenos software.This
The region has been relatively quiet in the last couple of phase was expected to last one year.
years and there are a few strong contenders, traditionally In December 2016, Commerce Bank chose Temenos’ core
Path Solutions for Islamic banking. However,Temenos wins its deposit banking system to enhance customer service and
share of deals and its Islamic support seems to have come on, provide faster availability of products in the market.
so that it gives Path a run for its money. For instance, Jordan In March 2017, The National Bank in Palestine went live
Ahli Bank (formerly Jordan National Bank), the oldest bank in with Temenos T24 core banking system. The project, which
the country and the third largest by assets, signed for T24 in included the wealth management and private banking
Q1 2012. The bank had 52 branches in Jordan and a presence modules amongst others, had been underway since 2014.
in Lebanon, Cyprus and Palestine. As part of the selection

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North America
It has been a stop-start effort in North America for Temenos, application environment. We’re at a size where it makes sense
but it is by no means alone in finding this a difficult region to to streamline these systems, we have over 400,000 customers
crack as an outside vendor. There is business to be had within and 51 branches right now, so it was time to make a change.’
the international operations of foreign banks, sometimes with Baker cited a number of reasons for selecting T24. ‘We felt
these scooped up in multi-site roll-outs, but it has been much it met the majority of our requirements. It has allowed us to
harder to sell to domestic US banks. They have tended to turn to consolidate a number of core systems and bring them into
a well-established set of domestic suppliers (somewhat reduced one.’ The vendor’s focus on banking products also appealed.
in the last few years due to consolidation), often with smaller ‘The expertise and experience that comes from that focus is
institutions taking the systems on a hosted basis. Where one something we hope to capitalise on.’Temenos’new Canadian
or two US banks have opted for non-US core systems (Infosys Model Bank also had an influence on the deal. ‘We’re quite
and Oracle FSS had breakthroughs), the fact that the projects closely linked to North Shore Credit Union so we’ve been
have typically not been successful is not likely to have helped able to have ongoing conversations with them about it.’
the progress of non-US players as a whole. Baker described business process redesign as ‘critical’ for
Temenos’ attempt with a partnership with domestic organisations like Coast Capital Savings. ‘They have a very
heavyweight, Metavante, came to an abrupt halt when, in May well developed system in terms of business redesign. So their
2009, it was announced that Metavante was to be acquired bank-in-a-box model really allows us to take advantage of the
by fellow US banking system supplier, FIS. Metavante was to time and development that Temenos has done.’
have tailoted and then sold Temenos’ seldom seen high-end The third largest, Servus Credit Union, became the third
retail banking system, Temenos Core Banking (TCB), for the taker a year later. Servus was the sum of three parts, with
US market. There was a brief falling out between Temenos one part using the Fincentric-derived Ovation, now owned
and Metavante, with legal threats. Temenos’ Chuard told IBS by Open Solutions, another Open Solutions’ TCCUS, and the
in May that the original agreement had been binding to both other part with a credit union service bureau offering. Ovation
parties, even in the event of one or other being acquired, and and TCCUS were considered, so too a relatively new Fiserv
that the contract also contained certain minimum royalty system, Acumen, that had 15 Canadian credit unions users.
payments to Temenos until 2012. In the end, a settlement was Servus’ COO, Eric Dillon, said Servus was impressed with
reached in July for the termination of their agreement. Temenos’commitment to its product and annual investment.
The main area of success for Temenos has been in Canada T24 was also felt to be sufficiently flexible to constitute a
within the credit union market, where it came to gain the three ‘hybrid’ solution, somewhere between a standard package
largest institutions.The first credit union to come on board was and the flexibility that stems from having the source code.
North Shore Credit Union, which has proved to be a proactive In addition, the system was felt to have the closest fit from a
customer ever since and was the site for the development of functionality perspective. Servus paid two site visits to North
a T24 Model Bank for Canada. T24 had a single Canadian Shore Credit Union, where the implementation was going
site ahead of this, National Bank of Greece (Canada), based well. Coast Capital signed for T24 during Servus’selection and
in Montreal. ‘We visited the bank and were able to see T24 this was also reassuring.
live,’ said Fred Cook, CIO at North Shore. North Shore Credit It was also Dillon’s belief that the largest credit union,
Union had been using a bureau-based solution once marketed Vancity Credit Union, would sign shortly. This duly occurred,
by Datawest Solutions and now owned by US vendor, Open in December 2010, giving Temenos the full sweep of the top
Solutions (subsequently Fiserv). It was concluded that T24 three. This was for Vancity’s retail and commercial banking
would best support its banking products and ‘high-touch’ operation systems, with the aim of reducing complexity and
customer service. The system was deemed to have a wide improving flexibility. Vancity was just ahead in terms of size,
range of functionality and was also felt to provide the best with 414,000 members and 59 branches at the time of the
environment for real-time integration with North Shore’s CRM deal.
and other systems. The Canadian version ofT24 was fully applicable for banks,
NorthShoresignedattheendof2006andtheprojectkicked not just credit unions, emphasised Green. He explained
off the following March, with HP working on it and providing that unlike in the US, where credit unions were restricted by
hosting. The Credit Union took the Microsoft SQL version of regulations in the products they could offer, their Canadian
T24. North Shore went for a ‘big bang’ implementation, with counterparts could operate in a similar way to banks and
this happening over a long weekend in August 2009. compete with them.‘We see no challenges in crossing over to
The second largest in terms of assets, Coast Capital the banking sector in Canada.’
Savings, took the system in 2009. This was to replace FIS’s In the US, the sole Metavante-derived client, EverBank,
Profile. Coast Capital’s CIO, Sheila Baker, said: ‘Coast Capital was apparently set to go live with T24 in mid-2011. Green
Savings is a growing organisation, and as we continue to grow described the undertaking at EverBank as ‘strategic’ for
we need a banking system that consolidates our current multi- Temenos. ‘A lot of US banks [EverBank was one of them]

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are now starting to offer quite sophisticated and different core conversion evolved into a ‘mass programme of multiple
products to what they’ve traditionally offered, for example, projects resulting in delays, cost overruns, integration and
structured products, multi-currency CDs [certificates of complexities’. Second, ultimately, Servus would have been
deposit] and precious metals.While many global vendors offer consolidating three institutions on a single core, yet two of
this functionality as part of a standard core package, many US the three were running the same core already. With a tight
vendors don’t.’Temenos was witnessing an increasing number conversion timeline and other projects, the lower risk was
of foreign banks coming to the US with these types of offerings, to covert one entity and consolidate databases for the other.
forcing domestic players to expand their product range to There was also a change of personnel, with Servus CIO, Dillon,
keep up with the competition. Yet incumbent suppliers often leaving to take up the CEO position at Conexus Credit Union.
could not provide adequate support, Green felt, with this an Coast Capital was also having a tough time. As mentioned
area whereTemenos‘can step into the market and fill this void’. its project dated back to 2007 (the start of a selection to replace
Green hoped that the EverBank project, coupled with FIS’s Profile) and the original plan had been to go live in 2011.
a new effort in Chennai to build a US Model Bank version In December of that year, the credit union’s media relations
of T24 and an 18 month roadmap, would prove Temenos’ manager, Divine Agodzo, told IBS that ‘the T24 project team
commitment to the US to prospects.The mainframe version of has really been buckling down in an effort to complete and
T24 was a‘game-changer’, Green felt, bringing into play users launch the system as soon as possible and has now been
of systems such as Systematics, which now resides with FIS. asked to focus all resources of the team on the core tasks of
T24 is used by entities such as New York-based Bank of developing and deploying the system’. There had also been
China, United Nations Federal Credit Union and China change at the helm of the project, as Baker had retired and
Merchants Bank, and Banco Sabadell in Miami, the latter replaced by Erwin Martinez, ex-CIO of Rabobank’s US division.
going live for private banking in 2006. As such, Temenos A year on, Coast Capital Savings was still waiting to go live.
was already able to claim that the system was fully compliant According to Agodzo, cutover was now set for the first half of
with the US regulatory requirements and payment system. 2013.
Although there had been no replacement for the Metavante Despite this, subsequent signings have come at Canadian
partnership, some of those global partners that Temenos Western Bank (taking T24 for retail banking, front office,
had been signing had a good North American presence. channels and business intelligence solutions) and Caisse
Cognizant, Capgemini and Deloitte all, ‘have strong relations Financial Group (takingT24 for retail banking implementation
with the financial institutions in the US’, according to Green. including channels, CRM and BI). Caisse Financial, which
The addition of IBM Global Consulting could help as well. signed for T24 in Q4 2012, was set to go live in early 2014, with
A US partnership, again centred on delivery, was also Canadian Western Bank (a Q1 2012 deal) following at the end
signed with Sofgen during 2011. The two won a deal in the of 2014.
second half of 2011 to roll out T24 and Sofgen’s REG-Reporter The T24 solutions would be replacing CGI’s RFS core
reporting solution across four sites of Banco de la Nación software at these sites, according to Temenos’ latest head of
Argentina (BNA) New York (although REG-Reporter was North America, Russell Taylor. February 2013 had finally seen
offloaded by Sofgen to Lombard Risk early the following year). the successful completion of the T24 system implementation
Two of BNA’s sites were in the US, in New York and Miami, at Coast Capital Savings. Here, T24 had also replaced the CGI
one in Panama and the other in Grand Cayman. They took RFS system. Taylor said going after the large credit unions had
T24 Release 11 to cover main front-to-back office operations been part of the vendor’s plan to set up a Canadian platform,
of BNA in these locations. The bank focuses on payments ‘taking the T24 system with its model bank capabilities, and
and trade finance. T24 would replace a 20+ year-old Mantec creating the local country model specifics for the market’.
system (its original developer, Management Technologies Temenos is also seeking to bring a hosted solution to the
Inc, was long gone and, in fact, the system had ended up with US. This follows the purchase of Trinovus, Alabama-based
Financial Objects, then with Temenos). The bank had been SaaS solutions provider. The early 2013 acquisition brought
developing and maintaining it in-house but the system had Temenos a workforce of around 50 and a ‘well-established
reached the end of the road. The T24 roll-out was expected to client base’ of 800+ financial institutions across the US,
take 14 months ‘from start to finish’. ranging from small community banks to credit unions and
In North America, Canada remained fruitful for Temenos, large financial institutions.Trinovus had compliance software
despite a non-starter at the aforementioned Servus Credit plus the Trinisys core processing solution on the IBM iSeries.
Unionandoverrunningschedulesatsomeothersites,including The new two-fold plan focuses on marketing T24, plus
Coast Capital Savings Credit Union. Servus shelved its roll-out auxiliary business intelligence, AML and compliancesolutions,
of T24 and reverted to its existing Ovation platform. A source as well as pushing wealth management software, with T24
close to the project said there were a couple of problems. First, and the Odyssey-derived Wealthmanager and Triple A. As
the scope of what was initially a relatively straightforward mentioned, Wealthmanager’s roots are in North America,

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having been developed by Canada-based Xeye. software licensing growth of just three per cent, but the vendor
Alabama-based Farmers Exchange Bank and Wisconsin- guided investors that this would be offset by total licensing
based Clare Bank were the first takers of T24 via the Trinovus growth in the region of 15-20 per cent in 2015 (likely reflected
business, signing in the second half of 2013. Both banks took by the recent signing of a major agreement with Swiss private
the full core banking package, with additional applications banking group, Julius Baer, see front page). Total revenues
such as business intelligence, mobile and internet banking, were down five per cent for Q4 on a like-for-like basis.
and compliance, to replace Trinisys. Meanwhile, Temenos gained core banking software
Temenos claims to have come up with a T24 US Model business, via its Alabama-based Trinovus subsidiary, with
Bank, with Independent National Bank expected to be the 2014 bringing it two new recruits, an off-the-record financial
first to go live, in H1 2015. Three other banks were added by institution and Independent Bankers Bank of Florida. The
early 2014, including the Texas-based duo of National Bank latter is moving from Fiserv onto the Software-as-a-Service
of Andrews and AimBank, again both Trinisys users. A series (SaaS) version of Temenos’T24, and is also implementing the
of go-lives across these customers was expected in 2014 and vendor’s AML and BI solutions, also on a SaaS basis. The bank
into 2015. Indeed, Temenos was claiming a first cutover in held a tender (RFI and RFP included) and it is understood that
November 2014. the incumbent supplier was among the shortlisted candidates
Temenos claims to have invested heavily in the US as well as another large domestic vendor. Furthermore, last
market, with the US Model Bank version having received year, Temenos gained a first live site in the country for its core
a multi-million dollar investment. A number of support system
functions had been moved from India to the US, it said, and Temenos reinstated the role of COO, appointing Max
the company was looking to its global partners to ramp Chuard, who also continues to hold his role of CFO at the firm.
up their US specific resources. There were further plans to Chuard has spent more than 13 years at Temenos. The COO
invest $3 million over three years in the US in terms of offices position had been abolished in 2012 following the departure
and resources. This included hiring 24 developers for the Mark Cullinane, who became head of M&A and then left the
Alabama data centre. next year. As one position is filled another empties, however,
Temenos outlined its strategy for the next three years after as chief strategy officer in the US for Temenos, Rich Longo, left
the publication of its 2014 full year financial results. Sluggish to join rival firm Infosys. Longo will now be leading strategy for
sales in Q4 (down nine per cent on 2013’s figure) meant yearly the Finacle unit in the US.

Further Sales
In parallel with all of the new-name business, there have been up well. Indeed, in two difficult years, it showed more
plenty of old users to try to move to T24. Some of these have been resilience from this perspective than most others. The
large projects in their own right. For instance, United Bulgarian 2009 tally showed no tailing off, coming in at 40, which was
Bank and its parent, National Bank of Greece (one of the earliest precisely the total for 2008. It was a good return in a clearly
takers of T24 after its release in 2003), had experienced a major depressed market and put Temenos a fair way ahead of
project. Nadejda Vladimirova, head of the T24 competence Oracle FSS, which saw Flexcube sales slump from 39 in 2008
centre at National Bank of Greece, said that, since 2007, the plan to 33 in 2009. Of Temenos’ 2009 sales, 30 per cent were in
had been to move all countries outside of Greece andTurkey onto Africa, 25 per cent in Central and South East Asia, 15 per cent
the same operational model of T24, hosted in Athens. Between in Western Europe, twelve and a half per cent in Asia Pacific,
2008 and 2011, banks in seven different countries, spreading seven and a half per cent in the Middle East, and single deals
across more than 20 legacy systems and 3000 products and in Central and Eastern Europe, Central and Latin America
services, were migrated onto T24. (a solitary Mexican taker and a considerable change from
This project started in Serbia at Vojvodjanska Bank in previous years), North America, and Australasia.
2007, which had 118 branches and more than two million In total, new-name deals for 2010 came in at 39, so only
customers, with this country project being finished in 2009. a small dip on the previous few years, although it looked as
Implementations followed in Romania, Egypt, Albania, though there were few high-end wins again. The lending
Macedonia, the UK and Bulgaria. The Romanian project, at focused deal at Danske Bank appeared to be at the higher end,
Banca Romaneasca, saw three legacy systems replaced by so too that at LBBW. Temenos had one deal in China, Xiamen
November 2010. As for United Bulgarian Bank, it had used International Bank (TCS led the way here in 2010 with four).
Globus since 2003 (having previously run Misys’ Equation) In some ways, it was not a surprise that Temenos could
and moved to T24 by September 2011. not maintain the momentum and sustain the relentless quest
Temenos’ 2009 and 2010 haul of new-name deals stood for new business in 2011. It had 27 new-name deals. The

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downturn was reflected in its financial results, particularly a new deal.
slump in Q4 licence revenue. In the IBS Sales League Table, it One other down-side in recent years has been in the wealth
was pipped by one by Oracle FSS. management space, where the bulk of the multi-site deals
This was the year of Dubois, when a stated focus had from tier one banks have gone to Avaloq. These have included
been on getting customers live, but normal service was Deutsche Bank, seemingly – as mentioned – in preference to
resumed in 2012 in terms of sales. It recorded 34 new-name the previous T24 route, HSBC, Barclays and Westpac. Lloyds
deals and pulled well ahead of Oracle FSS. However, there TSB, a previous signing for T24, was also believed to be
was no escaping the low-end, geographically diverse nature evaluating Avaloq during 2014.
of Temenos’ 2012 haul. It won a couple in its Canadian The aforementioned win at Banesco inVenezuela and State
stronghold, plus an international operation in the US. One Bank of Vietnam in early 2014 seemed to bode well for the
small international operation in Mexico was the complete haul year andTemenos once more benefited from relative stability.
for Central and South America, bar one in the Caribbean. In the Its financials remained steady and there were seemingly no
Middle East, there was a much-publicised signing with Jordan choppy waters. It has the challenge of turning its Trinovus
Ahli Bank and a couple of others in the Middle East but the acquisition in the US into a success, it still battles with delivery,
biggest gains were in Africa (nine) and Asia/Asia Pacific (ten). and it is also reworking its channels offerings, as it seeks to
In 2013, another depressed year, Temenos kept up crack this part of the market after previous attempts. And at the
the quantity of new-name deals so that it topped the IBS end of the day, T24, which has served the market so well and
Sales League Table by some distance, with 35 wins for T24. has had so much R&D, is not getting any younger, although it
However, the year was not without setbacks for Temenos in benefits from the lack of new generation challengers.
general. There was the Scoban/Hampden & Co reversal and Euro Pacific Bank, a small offshore investment bank based
it lost another of the Actis user base in Germany when Misr in St Vincent and the Grenadines, reached a decision on new
Bank Europe (a corporate bank) moved to a rival system from banking software. The bank signed for Temenos’ T24 core
Pass Consulting, complaining it had been ‘forced’ to leave banking system, including the AML component, provided on
Actis’ Paba/Q system by Temenos. Temenos also appeared to a Software-as-a-Service (SaaS) basis. It is hosted in Microsoft’s
be steadily hemorrhaging customers from the acquiredViveo Azure Europe environment. The deal was won against
user base in French-speaking countries. The latest to go in Temenos’frequent contestant in the private banking software
2013 were Banque Delubac in France (a private investment space, ERI, and its Olympic core system.
bank) and Banque de Développement Local in Algeria (BDL, In the year 2014, Temenos had one of its three Islamic
a state-owned universal bank), both to SAB. Bank of China in deals for T24 in Yemen, at Enjaz Capital, and another in Iraq.
France followed, cutting over to SAB’s system in late 2014. Inter-nationalTurnkey Systems (ITS) had two of its four Islamic
At face value, Temenos again weathered the storm better Ethix successes in Libya, at Assaray Trade & Investment Bank
than most in 2013. It maintained reasonable financial results and United Bank for Commerce & Investment. Although
(including a recently announced four per cent increase in Temenos did not win many new selections in 2014, additional
revenues for 2013 and guidance of five to ten per cent increase sales to existing customers meant it was not far off a similar
in revenues for 2015 and ten to 15 per cent for software performance to previous years.
licensing). The down-side was again the size and far-flung Switzerland-based private banking group, Julius Baer,
nature of its T24 successes. Every one was in the tier three or, concluded its lengthy selection process to find a find a new
mostly, tier four category. There were no multi-site deals. It core banking solution to harmonise its operations worldwide.
looked as though the increase in licence revenues stemmed in The winner being Temenos and its T24 offering, beating
part from sales of other applications and renewal agreements rival Avaloq to the deal at the final stage. The news was
(it shouldn’t be forgotten that Temenos started to switch from greeted cheerfully by Temenos’ shareholders, following the
perpetual licences to ten-year ones around 2003-2005). disappointing Q4 revenue figures. Julius Baer then embarked
That ten-year model has started to interest analysts in on a separate search for an implementation partner.
particular as, clearly, the renewals should now be having an DNB Luxembourg, a private banking subsidiary of major
impact. In fact, it isn’t nearly as clear cut as expecting all of Norwegian banking group, DNB, signed for Temenos’ T24
the new-name signings from 2005 to be renewing in 2015. core banking system and Temenos Connect for digital
Firstly, Temenos’ original efforts produced mixed results. channels. The contract was signed and the initial gap analysis
Some users dug in their heels and resisted term-based completed. The implementation work will be carried out by
licences of any sort. Others agreed but for a longer period. Temenos’ local partner, Syncordis.
Some, sensibly, agreed the renewal terms when the original Temenos landed one of its largest ever deals, with Nordea.
contract was signed. Moreover, some have extended their The vendor was selected in 2015 to provide its T24 core
licences before the deadline, perhaps when upgrading banking system to standardise operations across the group.
to a new release or taking additional components, with Accenture was picked as the integration partner.
Temenos’ sales team bundling in the renewal as part of the Sagicor Bank Jamaica went live with Temenos’ T24 core

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banking system. At the front-end, the bank rolled out the to be searching for a new banking system in 2013 and publicly
Netteller omnichannel banking platform supplied by Netinfo. announced its choice in November of that year. Changes in
The bank signed for Temenos’ T24 core banking system in customer behaviour and banking regulations, according to
Q2 2014. The acquired operation has already been a long-­ the company, caused it to look for a switch in core software.
standing user of T24 (as part of a multisite roll-out across the T24 replaced the bank’s legacy IT set-up, which was originally
regional operations of RBC). built by domestic vendor, Samlink.
Israel’s major banking group, Bank Leumi, signed for Vietnam Public Joint Stock Commercial Bank (PVcomBank)
Temenos’T24 core banking system and Temenos Connect for underwent a major front-to-back office software overhaul,
digital channels. The bank has adopted a gradual renovation with Temenos and Misys providing their solutions. At the
strategy, with the first phase being a new digital bank to be back office, PVcomBank is deploying Temenos T24 core
launched in Israel, underpinned by theTemenos software.This banking system, the contract withTemenos was signed in Q3
phase was expected to take one year. last year.
Kenya Commercial Bank (KCB), the largest financial Ethiopia-based Construction & Business Bank (CBB) had
services group in Kenya, embarked on an enterprise-wide officially inaugurated Temenos T24 core banking system,
initiative to upgrade its core banking system, Temenos’ T24. 11 years after announcing the first bid. The project had
The relationship with the vendor has been far from smooth four parts: IT infrastructure deployment, core banking
over the years, and at one point a possibility of the T24 implementation, data migration and cleansing, and the card
replacement was voiced. The original deal dates back to 2007. system implementation. The bank says T24 interfaces with
A number of integrators and consultants have worked with the the national payment system at the central bank, known
bank over time, including Sofgen and Cognizant. However, it as the Ethiopian Automated Transfer Switch (last year BPC
is understood that the replacement was no longer on the cards Banking Technologies won the contract to develop this
and the bank is sticking with T24, having decided to move to new platform). This would allow CBB customers to trade on
the latest version, R14. the Ethiopian Commodities Exchange.
Blueshore is a long-standing user of Temenos’ T24 core Hitachi looked to provide a private cloud service for
banking system, and is now also gearing up to implement Mizuho Bank, giving the latter a platform on which to
Temenos Connect for digital and branch customer experience. implement its core banking systems. Mizuho Bank would be in
It also runsTemenos’business intelligence solution, Insight BI. a position to optimise costs and reduce workloads and better
Temenos gained a new client for T24 in the microfinance launch future products by using the cloud. As well as aiding
sector, Enjaz Capital Islamic Microfinance Bank (ECIMB). The the development and implementation of their core banking
bank implemented the R14 version of Temenos’ T24 core system, the Temenos’ T24 platform.
banking system and the mobile banking solution, Temenos About 50% of the 154 new universal banking system
Connect. sales made in 2015 remained with the top three players. The
FirstOntario Credit Union, a small Canadian financial leadership position was retained byTemenos (34), followed by
services player with 100,000 members and 29 branches, Oracle (28) and Infosys (16).
replaced its legacy Fiserv Signature core system withTemenos’ Two Malawian banks were set to come together in a
T24. merger that would result in job cuts and a Temenos-based
Temenos will be working on the implementation and has core banking upgrade. Malawi Savings Bank (MSB) and First
already allocated a project manager and support team to help Discount House (FDH) Bank are the two entities who claimed
the credit union with best practices and training. to being set to merge, creating a new bank that was expected
Temenos stood out from the rest as a new bank chose to be floated on the country’s stock exchange in the next three
the system for its Asian launch. Nippon Wealth Limited Bank years or so. The merger is good news for Temenos, as its T24
(NWB), based in Hong Kong but with Japanese roots and core banking system will be underpinning the new bank’s
ambitions, is a start-up vying for success with T24 fuelling its operations.
push to power and glory.With the first stage of implementation DNB Luxembourg went gone live on Temenos’ T24 core
completed in May 2015, and the dust not yet settled, Temenos banking system within set timescales and budget. In addition
are already planning phase two with NWB. to the Microsoft-based T24 core, the bank also deployed
Ally Financial is believed to have signedTemenos emerging Temenos Connect at the front-end for digital channels, a
payments software offering, Temenos Payments Suite (TPS). new document management system from UK-based EFS
Meanwhile, another reference in theTemenos financial results, Technology and a regulatory reporting application from
top 35 domestic banks signing for Akcelerant products is Wolters Kluwer Financial Services. A local IT integrator and
believed to be Comerica. This was one of the largest ever deals Temenos’ services partner, Syncordis, assisted with the
for Temenos US subsidiary. delivery. Syncordis is now working on another T24 roll-out in
Finland’s Aktia Bank entered into the testing stage for its Luxembourg, at Advanzia Bank.
new core banking system, Temenos T24. The firm was known Nordea Bank SA, the international private banking arm of

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the Nordea group, had gone live with Temenos’ integrated withoneofthetop25banksinthecountry.Theimplementation
wealth management solution Wealthsuite after a three-year is expected to be complete by Q3 2016. The deal is in line with
implementation. The go-live was set for October 2015 with Temenos’ strategy of making headway in the lucrative US
Nordea Luxembourg seen as a flagship for Temenos’efforts in market. Further success was achieved in the US in October
the wealth management sector. 2016, when the account, loan organization and recovery
Temenos continued to enjoy several wins in 2016. It software of Temenos was selected by 16 financial institutions
registered its first major success in the US market, with a deal in the US through its subsidiary Akcelerant, a specialist local

Temenos Core Banking

In early 2016, Temenos rebranded all its products and business functions, such as accounting, limits and interest,
offerings, including T24, to ‘Temenos Core Banking’. The which are common across multiple modules and multiple lines
rebrand was a refreshment of the Temenos brand, while the of business.
underlying products and their functionality have remained Apart from Core Banking, Temenos also began offering
the same, albeit with added functionality. Temenos provides MarketPlace, an online, self-service, digital store that
one Annual Maintenance Release (AMR) per year, as well facilitates open banking and allows banks to enhance the Core
as monthly releases, with new functionality, enhancements Bankingsoftwarewithfullyintegratedandeasilyimplemented
and fixes. In May 2017, the company launched the annual solutions from both Temenos and fully vetted third party
maintenance release version R.17 of its Core Banking solution. providers. Offerings include a range of additional banking
Temenos also began following a Suite-based product software (such as for security, and automated investments), as
development, with each Suite including integrated series well as products that banks can offer directly to their customers
of domain -specific products. For example, the RetailSuite such as CurrencyCloud.There are currently 100 products from
includes Core Banking as well as other products such as around 150 FinTech providers onboarded, or in the process of
Channels and Analytics for retail banking; the WealthSuite being onboarded, such as fraud and risk assurance solutions
includes Core Banking and other products such asWealthSuite by NetGuardians, encrypt and query tool for sensitive data by
Front Office including CRM and portfolio management Inpher, document management by EFS and biometrics and
modules. Although marketed as Suites, customers have authentification by DigitalPersona. Marketplace also includes
been given the ability to choose to license only particular a core banking sandbox in the cloud (Dev/Test Platform-as-a-
elements or products of a Suite, such as Core Banking, with Service environment) where banks can test innovations while
all components offering integration to not only Temenos’ limiting risks; while the development community and startups
other components but also those from third parties. Certain can build and test innovations, and also certify and integrate
functions that go across the lines of business are implemented FinTech solutions within 2-4 weeks.
in cross functional areas, after factoring out of the lines of

Product Suite
Temenos Core Banking is delivered in a classic n tier architecture, as an integrated modular system. The main business layer
contains over 1,100 identically constructed components, each component operating as an individual module, but sharing a
common user interface, database, security control and application code set. Components can be assembled in different ways to
enable customization and reusability of the product. The components support aspects of Core Banking functionality, across the
verticals (retail/private/universal/corporate), across both the front and back office including:
- Core retail/private banking/universal/corporate functionality normally associated with middle or back office systems
- Temenos Connect Internet banking for personal (individual), private banking and corporate customers, delivered from
Temenos Core Banking
- Mobile Banking, delivering the same real-time information as available in other channels, via the mobile handset and smart
- Front office functionality associated with a bank user in a branch or call center such as single customer view, user“home page”
and activities list, operational and analytical CRM such as sales opportunity definition and campaign management.

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and leveraging industry-standard middleware.Temenos Design Framework also lets users undertake model-driven development,
enabling banks to redesign systems rapidly.
The suite also includes ‘Country Model Banks’ that incorporates the typical products available in a specific country and
customizes the system to offer products common to the region, such as national language, local regulatory reporting, tax, products
and payment schemes such as SEPA for Europe. Currently, there are 20 Country Model Banks Core Banking is also significantly
parameterized, allowing banks to tailor the system to new market/customer requirements by configuring parameters instead of
having to rely on coding development.

Technical Architecture
Programming Language - Temenos Core Banking business logic is written in a proprietary 4GL language, jBC (very close to
the BASIC syntax), then translated to generate Java code (byte-code (class file)) depending on the target platform. The jBC and
Java language provides the ability to develop (IDE provided) and future proof the Core Banking code base, to a certain extent,
protecting the investment in the business logic of Core Banking and any subsequent customization.
Hardware/DB support: Being compiled in JavaTM, the application code has been designed to remain the same regardless
of the hardware (HP, IBM, MICROSOFT) and operating system (WINDOWS, UNIX, LINUX, zOS) being used, thus facilitating
portability, optimized performance across many environments, and reduced time to market. All the code implementing specific
bank functionalities are isolated to remain compatible with newer versions of the product (automatic upgrades).The software has
also been made available in the Cloud, via SaaS or IaaS,

Recent Developments
With Core Banking,Temenos has worked on its objective to December,Temenos had some big wins. Philippine Resources
create a single core banking system, to focus on maintaining Savings Banking Corporation (PR Savings Bank), the fifth
and innovating one product rather than multiple ones. largest independent thrift bank in the Philippines, signed for
The company managed to garner few deal wins for Core TemenosT24 Core Banking and Analytics, even as it expanded
Banking in 2017. In January 2017, Rakuten Europe Bank S.A in its business lines from loans to deposits. Itaú Unibanco
Luxembourg went live onTemenos Core Banking and its multi- Holding SA (Itaú), Latin America’s largest banking group, also
channel internet banking solution. The implementation was selected Temenos’ WealthSuite for its international private
delivered in partnership with Luxembourg-based Syncordis. banking operations. The highly scalable solution combines
In March 2017, Fortuna Banque S.C. Luxembourg selected Itaú’s core banking, portfolio management, channels and
Temenos Retail Suite including Core Banking. In the same analytics functions in a single wealth management platform.
month, Khushhali Microfinance Bank in Pakistan also selected The bank will deploy WealthSuite in the cloud enabling the
Core Banking for Retail and MSME services. The National Bank solution to scale in an agile manner according to the ongoing
in Palestine also rolled out Core Banking, the first indigenous evolution of its business.
bank in the region to do so. Along with that, the bank also In Q1 2018, Suriname based Finabank signed for Temenos
implemented omnichannel platforms. T24 Core Banking, Channels, Business Intelligence and
In August 2017, Guatemalan cooperative network Financial Crime Mitigation. Saradar Bank sal, of Lebanon,
Federacion Nacional de Cooperativas de Ahorro y Credito Myanmar based Construction and Housing Development
(FENACOAC) selected Temenos’ RetailSuite across their 25 Bank (CHDB) and Myanmar Citizens Bank (MCB), and Banque
cooperatives. In the next month, Chile based financial services du Caire of Egypt also chose Temenos T24 Core Banking.
firm LarrainVial replaced its existing legacy system and went Banque du Caire of Egypt also chose Channels, Financial Crime
live on the Core Banking platform. As per LarrainVial, there has Mitigation, Front Office, Payments, and Risk & Compliance
been a decrease in operational times, and improvements in along with T24.
the customer experience due to simplification of their system In April 2018, Openbank, the digital bank of Santander
architecture with Temenos’ centralized offering. Credo Bank, Group, selected Temenos’ WealthSuite, that will be
based in Tbilisi, Georgia also upgraded to the Core Banking integrated with T24 Core Banking that it chose last October
platform. In October 2017, Cooperative Bank of Oromia (CBO) as its core banking solution across its global operations.
went live with Temenos’ UniversalSuite. Another US-based Telia Finance, an independent company acting as a
global Tier-1 bank, the Philippine Resources Savings Banking finance engine for Telia Company, a telco with a Nordic/
Corporation, and Swiss private bank EFG International (EFG) Baltic footprint, selected Temenos T24 Core Banking as its
also opted for T24 Core Banking in the succeeding months. In financial technology platform.

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The supplier had a busy second quarter in 2018 with 13 new customer wins including banks in Africa, established banks
in the UK and challenger banks. Temenos continues to grow in the African market, this time winning a deal with Afriland First
Bank, the largest bank in Cameroon in September 2018. The bank opted for a “complete IT renovation” using Temenos T24, as
well as a host of additional solutions including Temenos’ Front Office Suite, Analytics & Reporting, Payments Hub and Islamic
banking capabilities. More recently in October, it signed a deals with Banque de l’Habitat (BH), a state-controlled bank in
Tunisia. The project is expected to kick off in January 2019 and the go-live is expected in July 2021.

Temenos’ SaaS offering targetted toward challenger banks saw more takers - Praxia, the first challenger bank in Greece;
Grasshopper Bank, the newest challenger Bank in the US and mobile banking start-up Varo Money, also from the US.The
strategy of a strong API centric Saas solution along with an active marketplace seems to be quite popular amongst
challenger banks even in far our markets such as Australia where it signed with Judo Capital in September. Another notable
win during the quarter was the deal with Coventry Building Society, which marked Temenos’ first building society deal in the
UK. Coventry, the third largest building society in the UK opted for a full front-to-back revamp using T24, Temenos Channels,
Financial Crime Mitigation and Temenos Payments Hub solutions.

Temenos Core Banking has broad and deep functionality, surrounded by a range of other applications. The system is adapted
for many international markets. The core system has a high degree of flexibility, through a lot of parameterisation, with this
subsequently added to with some of the newer components. And Temenos has always invested more into its system in R&D
than the industry average, which means it has always evolved. After the latest release of Core Banking, Temenos has expressed
intent to continue to look out for complimentary products in the market which could enhance and update the solution. The
company is also engaging with some banks to leverage MarketPlace and the Innovation Jams in more ways, such as using the
Dev/test environment to simulate a new bank where banks can test its innovations, before presenting at a corporate level.
In 2018, the supplier initiated a collaboration with Luxembourg-based Luxhub, a European open banking platform formed
by BCEE, BGL BNP Paribas, Banque Raiffeisen and POST Luxembourg. The partnership is aimed at helping banks meet PSD2
standards in the region.

There has traditionally been good transparency, with Temenos making its TCF event open to prospective customers and
analysts, and with a relatively clear product roadmap. In its latest TCF event, the focus apprears to shifting from its core T24
to developing its capabilitis in payments, front office and anti-money laundering (AML). At the event, Temenos unveiled
its new front office suite, offering digital services for banking customers across the retail, corporate and wealth segments.
The solutions is a comprehensive, open, omnichannel, data-driven solution, which combines Temenos’ existing solutions
for channels, analytics, risk and compliance with new components such as an API layer, artificial intelligence (AI) models for
customer engagement, and consent management.

Temenos’ deployment model continues to remain heavily dependent on a considerable number of large and specialist
third party resources for T24 (consultants, integrators etc) around the world.The flexibility of the system is both a strength
and weakness, as it necessitates strong project management and has been a factor in a number of problem projects. T24 is
not taken for high-end retail banking and, despite the R&D, there is no escaping the fact that the core system has long roots,
back to the late 1980s.

For smaller banks, as always when dealing with a company with such a large user base and many ongoing projects at
any one time, there is the question of how much attention they will command, in attracting resources and gaining remedial
action when there are problems. Temenos has had a tendency to over-promise. Pioneer customers throughout its history,
whether with new releases and components or for new countries (Credit Suisse in Germany, a number of banks in the
Netherlands), have often had problems.

At a corporate level, the success of the company’s takeovers has been patchy, with the user bases not typically wanting to
migrate to T24. Temenos’ bought or built applications around the core have been of mixed quality over the years and there
has been some chopping and changing of strategy and positioning. Reliance on third parties to implement T24 can be an
issue, depending on the experience of the resources.

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Charts and user lists

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Temenos T24

Number of Known Users: 638 Banca Ficohsa (Honduras)

Banca March (Luxembourg)
A&T Bank (Turkey) Banca Monte dei Paschi di Siena (Germany, Hong Kong, Italy,
Abbank (Vietnam) UK, US)
ABLV Bank (Latvia) Banco Autofin (Mexico)
ABN Amro Bank (Germany, Hong Kong, Netherlands, Singapore, Banco Azul (El Salvador)
UK, US) Banco Capital (Ecuador)
Access Bank (Azerbaijan) Banco Credicoop Cooperativo (Argentina)
Accion (Ghana, Nigeria) Banco de la Nación Argentina (US)
Acleda Bank (Cambodia, Laos) Banco Financiero Internacional (Cuba )
Aegean Baltic Bank (Greece) Banco Itaù (Brazil, US)
Afrasia Kingdom Zimbabwe (Zimbabwe) Banco Multiva (Mexico)
AGBank (Azerbaijan) Banco Popular y de Desarrollo Comunal (Costa Rica)
Agrani Bank (Bangladesh) Banco Sabadell (UK, US)
Agricultural Bank of Zimbabwe (Zimbabwe) Banco Standard Totta de Mocambique (Mozambique)
Agricultural Development Bank (Nepal) Banco Terra SA (Mozambique)
AIBK (Arab Investment Bank) (Egypt) Banco Unico (Mozambique)
AimBank (US) Banco Ve Por Mas (Mexico)
Ajman Bank (UAE) Bancoldex (Colombia)
Akiba Commercial Bank (Tanzania) Banesco (Dominican Republic, Panama, Venezuela)
Aktia (Finland) Bank Albilad (Saudi Arabia)
Al Hilal Bank (Saudi Arabia) Bank Alfalah (Pakistan)
Al Khaliji Bank (Qatar) Bank al-Jazira (Saudi Arabia)
Al Rajhi Bank (Saudi Arabia) Bank Alkhair (Bahrain)
Al Salam Bank (Algeria, Bahrain) Bank Andara (Indonesia)
Al Watany (Egypt) Bank Artha Graha (Indonesia)
Aldermore Bank (UK) Bank for Investment and Development of Cambodia (Cambodia,
Alfa-Bank (Ukraine) Vietnam)
Alinma Bank (Saudi Arabia) Bank Hapoalim (UK)
Allied Bank of Pakistan (Pakistan) Bank Harda (Indonesia)
Allied Irish Banks (Ireland) Bank Leumi (Luxembourg, Panama, Switzerland)
Alubaf International Bank (Tunisia) Bank Mayora (Indonesia)
AmBank (Malaysia) Bank Mendes Gans (Netherlands)
American Express (Hong Kong, Monaco, Singapore, Switzerland, Bank Muscat (Oman)
UK, US) Bank Nederlandse Gemeenten (Netherlands)
Amrahbank (Azerbaijan) Bank of Abyssinia (Ethiopia)
Amret Microfinance (Cambodia) Bank of Botswana (Botswana)
Anker Bank (Switzerland) Bank of China (Brazil, US)
Antwerp Diamond Bank (Mauritius) Bank of China International (China)
APAP (Asociacon Popular de Ahorros y Prestamos) (Dominican Bank of Dodecanese (Greece)
Republic) Bank of East Asia (UK)
Apicorp (Saudi Arabia) Bank of England (UK)
Arab Investment Bank (Egypt) Bank of Ghana (Ghana)
ARB Apex Bank (Ghana) Bank of Latvia (Latvia)
Arbah Capital (Saudi Arabia) Bank of Maldives (Maldives)
Aresbank (Spain) Bank of New York Mellon (US)
Arzan Financial Group (Kuwait) Bank of Shanghai (China)
ASO Savings (Nigeria) Bank of Sierra Leone (Sierra Leone)
Associated Discount House (Nigeria) Bank of Tokyo Mitsubishi UFJ (Mexico)
Astana Finance (Kazakhstan) Bank of Valletta (Malta)
Attica Bank (Greece) Bank of Zambia (Zambia)
Attijariwafa Bank (Senegal) Bank Rabobank International (Indonesia)
Avenue Securities (Malaysia) Bank Rakyat Indonesia Syariah (Indonesia)
Bahraini Saudi Bank (Bahrain) Bank Sinarmas (Hong Kong)
Baltic International Bank (Latvia, UK) Bank SinoPac (China, Hong Kong, Taiwan, US, Vietnam)

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Bank Syariah Mandiri (Indonesia) City Investment Co (Ghana)
Bank Tabungan Pensiunan Nasional (BTPN) (Indonesia) Civil Bank (Nepal)
Bank Windu Kentjana International (Indonesia) Clare Bank (US)
Bankia (Austria, Portugal, Spain, US) Close Brothers (Channel Islands)
Banque Cantonale de Genève (Switzerland) CNEP Banque (Algeria)
Banque Centrale Populaire (France) Coast Capital Savings CU (Canada)
Banque Chaabi du Maroc (Germany, Morocco) Commercial Bank Microfinance (Ghana)
Banque de France (France) Commercial Bank of Africa (Kenya)
Banque de l’Union Haitienne (Haiti) Commercial Bank of Egypt (Egypt)
Banque Internationale Arabe de Tunisie (BIAT) (Tunisia) Commercial Bank of Ethiopia (Ethiopia, Sudan)
Banque Libano-Francaise (Lebanon) Commercial Bank of Malawi (Malawi)
Banque Marocaine du Commerce Exterieur (Morocco) Commercial International Bank (Egypt)
Banque Nationale de Mauritanie (Mauritania) Commerzbank (Luxembourg)
Banque Populaire du Rwanda (Rwanda) Compagnie Monégasque de Banque (France)
Banque Raiffeisen (Luxembourg) Construction and Business Bank (Ethiopia)
Banque Saudi Fransi (Saudi Arabia) Co-operative Bank (Myanmar)
Banque Tuniso-Libyenne (Tunisia) Co-operative Banks of Greece (Greece)
Banque Zitouna (Tunisia) Coventry Building Society (UK)
Bao Viet Bank (Vietnam) Crane Bank (Rwanda, Uganda)
Bawag (Austria, Malta) Crédit Agricole (US)
Bermuda Commercial Bank (Bermuda) Credit Bank Kenya (Kenya)
Best Bank (Tunisia) Credit Suisse Life and Pensions (Luxembourg)
BforBank (France) Credit Suisse Private Banking (Australia, Bahamas, Hong Kong,
Blueshore Financial Credit Union (Canada) Italy, Japan, Singapore, Spain, Switzerland, UAE, UK)
BMI Bank (Bahrain) Crowned Eagle MFB (Nigeria)
BOS Bank (Poland) Danske Bank (Denmark, Finland, Germany, Ireland, Luxembourg,
Botswana Building Society (Botswana) Norway, Poland, Sweden, UK)
Botswana Savings Bank (Botswana) Delta Lloyd Bank (Netherlands)
BPR Karyajatnika Sadaya (Indonesia) Development Bank of Ethiopia (Ethiopia)
Butterfield Bank (Guernsey, UK) Development Bank of the Philippines (Philippines)
Byblos Bank (Belgium, Cyprus, France, Lebanon, Sudan, Syria, DNB Luxembourg (Luxembourg)
UK) East West Bank (Philippines)
Cairo Amman Bank (Jordan) East West United Bank (Luxembourg)
Caisse Financial Group (Canada) Eastern Caribbean Central Bank (St Kitts & Nevis)
Caja Libertad Sociedad Co-operative de Resposabildad Limitada Economy Bank (Netherlands)
(Mexico) EEPK (Luxembourg)
CAL Merchant Bank (Ghana) EFG Bank (Luxembourg, Switzerland, UK)
Canadia Bank (Cambodia) Elaf Islamic Bank (Iraq)
Canadian Western Bank (Canada) Enjaz Capital (Yemen)
Capita International Financial Services (Ireland) Equitas Micro Finance (India)
Capital and Credit Merchant Bank (Jamaica) eSun Bank (Taiwan)
Capital Bank (Jordan) European Commission (Luxembourg)
Central Banco de Investimentos (Portugal) Everbank (US)
Central Bank of Azerbaijan (Azerbaijan) EVN Finance (Vietnam)
Central Bank of Gambia (Gambia) EXIM Bank of Thailand (Thailand)
Central Bank of Jordan (Jordan) Export Development Bank (Sudan)
Central Bank of Kenya (Kenya) Export Development Bank of Egypt (Egypt)
Central Bank of Liberia (Liberia) Export Import Bank of Bangladesh (Bangladesh)
Central Bank of Nigeria (Nigeria) Expressbank (Azerbaijan)
Central Bank of Swaziland (Swaziland) Farmers Bank (Bangladesh)
Central Bank of the Republic of Guinea (Guinea) Farmers Commercial Bank (Sudan)
Central Bank of West African States (Guinea Bissau) Farmers Exchange Bank (US)
CETZAM (Zambia) Faulu Kenya (Kenya)
China Merchants Bank (Hong Kong, Singapore, US) FDH Bank (Malawi)
CIBanco (Mexico) Federal Bank (Lebanon)

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FICREA (Mexico) La Compagnie Financiere Edmond de Rothschild (France)
Fidelity Bank (Nigeria) La Nef (France)
Finance House (UAE) Land Bank of Taiwan (Taiwan)
Financiera Finsol (Mexico) Lao Development Bank (Laos)
Finansbank (Netherlands, Switzerland) Larrain Vial (Brazil, Chile, Colombia, Mexico, Peru, US)
Fincimex (Cuba ) LCH.Clearnet (UK)
First Capital Plus Savings and Loans (Ghana) Liberata (UK)
First Energy Bank (Bahrain) Libra Bank (Romania)
First Global Microfinance (Nigeria) Libyan Arab Foreign Bank (Libya)
First Gulf Bank (UAE) Libyan Qatari Bank (Libya)
FirstOntario Credit Union (Canada) Lloyds Banking Group (Guernsey, Isle of Man, Jersey, UK)
Fondep (Morocco) Machhapuchchhre Bank (Nepal)
Fonds de Developpement Social du Conseil de l’Europe (France) Maleny CU (Australia)
Fortuna Banque SC Luxembourg (Luxembourg) Mashreq Bank (Bahrain, Egypt, India, UAE, UK, US)
Fountain Credit Service (Kenya) Mauritius Commercial Bank (Mauritius)
Future Bank (Bahrain) MB Vietnam (Cambodia, Laos, Vietnam)
GAPI (Mozambique) Mbank (Poland)
Garanti Bank (Germany, Netherlands, Romania) MeesPierson (Netherlands Antilles, UK)
GE Capital Woodchester (Ireland) Meezan Bank (Pakistan)
Ghana International Bank (UK) Mekong Development Bank (Vietnam)
GM Bank (Philippines) MembersEquity Bank (ME Bank) (Australia)
Grasshopper Bank (US) Mercantile Bank (Bangladesh)
GPBank (Vietnam) Metro Bank (UK)
Habibsons Bank (UK) Metropolitan Bank (Zimbabwe)
Handico Finance Joint Stock Company (Vietnam) Microcred (China, France, Ivory Coast, Madagascar, Nigeria,
Hermes Bank Limited (St Lucia) Senegal)
HFC Bank (Ghana) MKB Bank (Hungary)
Himalayan Bank (Nepal) Moldova Agroindbank (Moldova)
Hipotecaria Vertice (Mexico) Monte dei Paschi Belgio (Belgium)
Hong Leong Bank (Malaysia) Nacional Financiera (Mexico)
Hypo Alpe-Adria Bank (Bosnia and Herzegovina, Montenegro, National Bank (Bangladesh)
Serbia) National Bank of Andrews (US)
IFDS (Canada) National Bank of Commerce (Uganda)
Independence National Bank (US) National Bank of Fujairah (UAE)
Independent Bankers Bank of Florida (US) National Bank of Greece (Albania, Bulgaria, Egypt, Greece,
Inteligo Bank (Panama) Macedonia, Romania, Serbia, UK)
Intesa Sanpaolo (Russia) National Bank of Kuwait (Switzerland)
Investec (Australia) National Bank of Malawi (Malawi)
Islamic Development Bank (Saudi Arabia) The National Bank (Palestine)
Ithala (South Africa) National Bank of Rwanda (Rwanda)
Janata Bank (Bangladesh) National Bank of the Republic of Kazakhstan (Kazakhstan)
Jih Sun Commercial Bank (Taiwan) National Bank of Uzbekistan (Uzbekistan)
Jordan Ahli Bank (Jordan) National Citizen Bank (Vietnam)
JP Morgan Chase (Australia, China, India, Luxembourg, Malaysia, National Investment Bank (Ghana)
Philippines, Saudi Arabia, Singapore, Spain, Taiwan, UAE, UK, National Islamic Bank (Iraq)
Vietnam) NBS Bank (Malawi)
JS Bank (Pakistan) NDB Bank (Sri Lanka)
Kadet Bank (Kenya) NDK (Ghana)
KBC (Belgium, Ireland, Jersey, Luxembourg, Monaco, Nedbank (Hong Kong, Lesotho, Malawi, Namibia, Swaziland)
Netherlands, Switzerland, UK) Nedbank (UK)
KBL France (Switzerland) NIB Bank (Pakistan)
Kenya Commercial Bank (Kenya, Sudan, Tanzania) NIB International Bank (Ethiopia)
Kenya Women Finance Trust (Kenya) NIC Bank Kenya (Kenya)
Keystone Bank (Nigeria) NLB Bank (Slovenia)
Kleinwort Benson (Channel Islands, UK) NMB Bank (Zimbabwe)
K-Rep Bank (Kenya) Nordea (Estonia, Finland, Latvia, Lithuania, Luxembourg, Poland)
Kumari Bank (Nepal) Nordea Bank (Luxembourg)
Kuwait Investment Company (Kuwait) North Africa Commercial Bank (Lebanon)

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NRB Global Bank (Bangladesh) State Bank of India (Indonesia)
Nuestra Caja (Mexico) State Bank of Pakistan (Pakistan)
Oak Financial Services (Ghana) State Bank of Vietnam (Vietnam)
Oasis Savings & Loans (Nigeria) Sterling Bank (Nigeria)
OK Bank (Philippines) Suez Canal Bank (Egypt)
Opportunity Albania (Albania) Sumitomo Mitsui Banking Corporation (Indonesia, Japan,
Opportunity International (US) Malaysia)
Optimum Development Bank (Philippines) Sumitomo Mitsui Trust Bank (Japan)
Oricom Bank (Orient Commercial Joint Stock Bank) (Vietnam) Summit Bank (Pakistan)
Pan Asia Bank (Sri Lanka) Sunrise Bank (Nepal)
Pancretan Co-operative Bank (Greece) Swazibank (Swaziland)
Parex Bank (Latvia) Swedbank (China, Finland)
Permata Bank (Indonesia) Swissquote (Switzerland)
Philippine Bank of Communications (Philippines) Tanzania Investment Bank (Tanzania)
Phongsavanh Bank (Laos) Tatra Bank (Slovakia)
Postbank (Iran) Techcombank (Vietnam)
Praxia (Greece) The National Bank (Palestine)
Prime Bank (Bangladesh) The Royal Bank Limited (Ghana)
Qatar First Investment Bank (Qatar) TN Bank Zimbabwe (Zimbabwe)
Qatar Islamic Bank (Qatar) TriCap Administration (Luxembourg)
Rabobank (Australia, New Zealand) Triptra Investido Arya (Indonesia)
Raiffeisen (Austria, China, Kosovo, Poland, Slovenia) Tropical Bank (Uganda)
RBC Royal Bank (Trinidad & Tobago) Turkish Bank (Cyprus, Turkey, UK)
RCB Bank (Cyprus) UBAE Rome (Italy)
Reall (Angola, Kenya, UK) UBS (UK)
RenMoney (Nigeria) Umsobomvu Youth Fund (Kenya)
Reserve Bank of Zimbabwe (Zimbabwe) UniBank of Ghana (Ghana)
RHB Bank (Malaysia) Union National Bank (Egypt, UAE)
Royal Bank Zimbabwe (Zimbabwe) United Installment Company (Saudi Arabia)
Rural Development Bank (Papua New Guinea) United Nations Co-operative Savings and Credit Society (Kenya)
Sacombank (Vietnam) United Nations Federal CU (US)
Sagicor (Jamaica) Uniting Financial Services (UFS) (Australia)
Sahara Bank (Libya) Universal Bank (Cyprus)
SAIB (Egypt) UT Bank (Ghana)
Saigon Commercial Bank (Vietnam) Vancity CU (Canada)
Samba Financial Group (Saudi Arabia) Victoria Bank (Moldova)
Santander (Bahamas, Spain, Switzerland, US) Vietnam Bank for Agriculture and Rural Development (Vietnam)
SASFIN Treasury (South Africa) Voicecash Bank (Malta)
Saudi Hollandi Bank (Saudi Arabia) Volkswagen Finance/Leasing (China, Mexico)
Schroders Investment Management (Jersey, Switzerland, UK) Votorantim (Brazil)
Seabank (Vietnam) VPBank (Vietnam)
Servicios y Financiamiento Agrícola (SeFia) (Mexico) VTB Group (Austria)
Sharjah Islamic Bank (UAE) Wasatah Capital (Saudi Arabia)
Silkbank (Pakistan) Waseela Microfinance Bank (Pakistan)
Six Towns Credit Union (UK) Westpac (Singapore)
Sociedad Financiera Campesina (Soficam) (Mexico) Wing Lung Bank (Hong Kong)
Sociedad Hipotecaria Federal (Mexico) Worldeagle Investments (SME Bank) (Namibia)
Société Générale de Banque au Liban (Cyprus, Jordan, Lebanon) Xiamen International Bank (China)
South Bangla Agriculture & Commerce Bank (Bangladesh) Yemen Bank for Reconstruction & Development (Yemen)
St Raphael’s Garda CU (Ireland) Zambia National Building Society (Zambia)
Standard Bank (Azerbaijan, Hong Kong, Isle of Man, Jersey, Zenith Bank (UK)
Taiwan, UK, US) Ziraat Bank (Saudi Arabia)

568 Universal Banking Systems Market Report |