Temenos targets US neo banks with purpose-built tech suite
Temenos (SIX: TEMN), the banking software company, today launches a front-to-back banking software as a service designed uniquely for the US market – with pre-integrated U.S. banking products and services designed to deliver an outstanding customer experience. Leveraging the power of its Temenos Infinity and Temenos Transact banking products built on its modern cloud-native, cloud-agnostic and API-first technology, Temenos has developed the next-generation SaaS product, enabling new digital banks to launch in the US within 90 days, and grow their business rapidly.
According to a recent Economist Intelligence Unit study, challenger banks – whether domestic startups or overseas brands that are now expanding their footprint – are making their presence felt in North America. The study also found that the number of banks choosing to develop new greenfield initiatives in the region has increased from 13% in 2018 to 29% in 2019, coming closer to the worldwide average of 36%. Temenos U.S. SaaS product is ideal for neo and digital banks in the US seeking to dramatically reduce their time to market, operational complexity and cost.
The Temenos U.S. SaaS offering provides new digital banks with a superior omnichannel front-to-back solution that delivers fully configured banking products and services, including support for conversational interfaces, artificial intelligence, augmented reality, and wearable technologies. This gives an exceptional customer experience that allows digital banks to open new accounts seamlessly through all digital channels. Temenos US SaaS product allows new digital banks to come to market quickly, acquire customers fast, reduce customer onboarding time, and grow share of wallet and revenues fast. Onboarding new customers is seamless and frictionless – and can be completed in a matter of minutes.
The solution is highly parameterized, allowing banks to rapidly configure and launch innovative products and services. In a market where a differentiated user experience is critical to success, banks can choose to customize Temenos’ customer-facing applications based on its class-leading multi-experience platform or build their own by connecting to Temenos’ extensive catalogue of functionally rich open APIs.
Additionally, Temenos’ U.S. SaaS platform provides access to pre-integrated and packaged fintechs on Temenos MarketPlace, ranging from ID verification and e-signature, to live chat and Personal Financial Management (PFM) services, allowing new digital banks to create innovative offerings at speed.
The Temenos product has built-in U.S. regulatory compliance and is fully integrated with the U.S. banking landscape via its catalogue of third-party interfaces and connectors. Temenos SaaS cloud deployment provides cost and scalability benefits with high security and availability measures. Accessing the solution through a pay-as-you-go subscription model, banks will pay only for what they use with the price scaling as business grows. The solution is continuously deployed 24 X 7 X365 days, per year, underpinned by a microservices architecture delivering highly efficient elastic scaling capability, automatically provisioning resources to perfectly match demand upwards or downwards. All providing a seamless service experience that delivers constant innovation, releasing banks from the relentless and costly cycle of software upgrades. Temenos cloud-agnostic technology and deep commitment to continual R&D ensures that, for years to come, Temenos will remain at the forefront of banking’s digital transformation, taking advantage of the best cloud innovation available while delivering the lowest cost option.
Max Chuard, Chief Executive Officer, Temenos, said: “With our new U.S. front-to-back SaaS product for digital banks, we will revolutionize the software banking landscape in the U.S., which is a highly strategic market for us. We are pioneers in cloud software and have global banking expertise in delivering high-profile and hugely successful SaaS-based retail digital banks and neobanks in regulated environments, from Varo Money and Grasshopper in the U.S., to Volt Bank and Judo Bank in Australia, and Leumi’s Pepper in Israel. These are exciting times as we continue to offer banks the most advanced SaaS digital banking product based on modern, cloud-native technology, giving them the freedom to dramatically reduce their time to market, cost, operational complexity and deliver outstanding digital customer experiences.”
Temenos has over 1,300 customers in North America and over 700 employees. The company boasts a list of clients ranging from top-tier global financial institutions such as Commerce Bank to challenger banks such as Grasshopper Bank, Varo Money, and credit unions such as Partners Federal Credit Union. .
Jeffery Kendall, Executive Vice President, North America Sales and Distribution, Temenos, said: “Banks and credit unions in the U.S. have shifted their investment focus to strategies that allow them to quickly grow consumer and small business deposits at a lower cost of acquisition. This trend has created the need for a turn-key digital banking service focused on speed to market with scalable cost as launching a digital bank has historically been an expensive and difficult endeavor. Temenos is powering the critical growth of our customers by providing a front-to-back, SaaS based, digital banking solution that will allow neobanks to compete in this dynamic market.“