The Most Profitable Banks Run Temenos

Enabling Our Clients to Raise Their Asset Yield Within Their Existing Business

There are two main means to raise asset yield in an existing business and we help with both.

The first is by managing risk better, so our clients take lower provisions against their assets. The second is by selling more services to existing customers. In both cases, we enable our clients to so by providing complete, real-time information with the analytical tools to capitalize on it. Compared to the industry average of 2.1 products per customer, Temenos customers achieve 2.7 on average.

The first is by managing risk better, so our clients take lower provisions against their assets. The second is by selling more services to existing customers. In both cases, we enable our clients to so by providing complete, real-time information with the analytical tools to capitalize on it. Compared to the industry average of 2.1 products per customer, Temenos customers achieve 2.7 on average.

Enabling Our Clients to Lower Their Operational Costs Sustainably

Cutting costs is easy. But cutting costs in a way that is both sustainable and supportive of a bank’s future growth prospects is more challenging. It requires streamlining and automization of processes – optimizing a bank’s operations rather than simply cutting them back. Legacy modernization is key.

With our solutions, our customers lower costs sustainably, whilst also making themselves more flexible and agile.

They are also able to redirect IT spending from maintenance to innovation. Against an industry of just 21.2%, Temenos customers spend 55.7% of their budgets on innovation.

Enabling Our Customers to Extract Economies of Scale

Modern technology is essential to realize scale economies. This is the case for both organic and inorganic growth.

Utilizing Temenos’ integrated and scalable technology allows our clients to add more and more volume without a corresponding increase in hardware, software or labour costs.

Bank of Shanghai is adding around 700,000 new retail and corporate customers a year on its Temenos Core Banking platform and its productivity is ballooning. For example, its ratio of IT costs to total assets is 44% lower than its domestic peers.

Giving Our Clients the Agility to Move Into More Profitable Markets and Segments

An important way to grow RoE is for banks to exploit segments and markets that generate higher margins. Clearly if all banks did the same then margins would fall. So the key is to reposition the bank’s operations effectively and quickly.

Temenos’ modern core banking system can help on both counts.

Our systems enable banks to build highly personalized and differentiated products and services. They also enable banks to launch them quickly whilst maintaining consistency to enable a true multi-channel experience.

As a recent example, Temenos was able to help Commercial Bank of Africa to launch a brand new, fully digital bank called M-Shwari. A partnership with Safaricom, M-Shwari was aimed at M-Pesa users, to provide them with savings and loan products. Launched within 5 months at the end of 2012, M-Shwari attracted 1m customers in 40 days, 3m in 3 months and now has over 11m users. It has also been taken into other African countries such as Tanzania.