At a Glance
- Largest Islamic bank in Indonesia with 23M+ customers
- Enterprise-wide Temenos Core upgrade and migration to OpenShift
- 25 billion data records migrated and validated
- More than 50% reduction in Close of Business processing time
- 50 to 75% reduction in downstream processing and reporting times
- 340% increase in transaction processing throughput, achieving up to 8,800 TPS
Bank Syariah Indonesia (BSI) is the largest Islamic bank in Indonesia. Established in 2021 through the merger of three state-owned Islamic banks, BSI now serves more than 23 million customers and manages approximately IDR 456 trillion (US $27B) in assets. Its ambition is to become one of the Top 5 Global Islamic Banks while strengthening its position as the best Islamic financial platform.
As BSI continued to grow, so did the demands on its technology. Increasing digital adoption and transaction volumes meant the bank needed a platform that could support growth while remaining resilient, scalable and secure. Modernizing its core banking platform became a strategic priority to keep pace with changing customer expectations while strengthening operational performance.
Building on a proven partnership
BSI’s relationship with Temenos began during the Bank Syariah Mandiri era, when the bank first adopted Temenos for its core banking operations. Following the 2021 merger, Temenos continued as the core banking platform for the newly formed BSI, supporting the bank as it expanded and evolved.
After nearly 14 years of operation and significant customization, however, the platform had become increasingly complex to maintain and less agile in supporting evolving business needs.
Rather than replacing its core banking platform, BSI chose to build on its existing investment and upgrade to the latest version of Temenos Core.
Rendy Ferdiansyah, Group Head IT Application Support, Bank Syariah Indonesia (BSI) said, “We chose to continue with Temenos because we already had a strong foundation on the platform and extensive experience operating it.”
For BSI, staying with Temenos meant building on its existing investment while streamlining and modernizing its platform, eliminating the complexity that had accumulated through years of customization. This enabled the bank to benefit from significant technology and functional enhancements while reducing the implementation risk of a full core banking replacement.
What we value most about Temenos Core is its ability to support end-to-end banking operations on a single platform while providing the flexibility to accommodate Sharia banking requirements.”
Rendy Ferdiansyah, Group Head IT Application Support, Bank Syariah Indonesia (BSI)
An upgrade that became a transformation
What began as an upgrade became a much broader transformation of BSI’s technology environment.
Working closely with Temenos and implementation partner Systems Limited, BSI modernized the core banking platform across multiple layers of its architecture. The program combined the Temenos Core upgrade with a TAFC-to-TAFJ migration, Microsoft SQL Server-to-Oracle database transformation, and migration from virtual machines to Red Hat OpenShift Container Platform.
“The upgrade was a complete transformation rather than just a version upgrade,” Rendy explains. At the same time, the teams managed database migration, data cleansing, application remediation and extensive testing. Because Temenos Core connects with digital channels, ATMs, payment systems, middleware, reporting platforms and other applications, the transformation required careful coordination across BSI’s wider technology ecosystem.
Transformations of this scale and complexity are ultimately built on trust. Our partnership with BSI has developed through working side by side, building a deep understanding of the bank’s ambitions and taking shared ownership of some of its most critical technology priorities. Modernizing a core platform across a significant technology gap, while protecting service continuity for millions of customers, required exceptional collaboration and execution. Together with BSI, Temenos and Red Hat, we have created a more resilient and scalable foundation for the bank’s next phase of growth—and demonstrated what can be achieved when technology expertise is matched by a truly deep, long-term partnership.”
Ammara Masood, GM Banking and Financial Services, Systems Limited
Transformation at scale
The scale of the transformation was significant. BSI successfully migrated and validated 25 billion data records while maintaining integration across its banking ecosystem.
The program also required coordination across the organization. BSI’s President Director positioned the initiative as a strategic transformation and remained actively involved through key milestones, including go-live. More than 1,500 employees across business and technology teams contributed to the program, supported by extensive testing and close collaboration to maintain business continuity.
“Technology is only one part of the journey. Success comes from strong leadership, effective governance, close collaboration and thorough preparation through comprehensive testing before go-live,” said Rendy.
BSI successfully went live in May 2026, marking a major milestone in its core banking modernization.
A stronger core for Islamic banking
At the center of BSI’s banking operations, Temenos Core supports customer and account management, payments, financing, treasury and trade finance, while enabling the bank’s extensive portfolio of Sharia-compliant products.
The platform provides the scalability, resilience and functional breadth required to support BSI’s retail, SME and corporate businesses as the bank continues to grow.
Integration is another key advantage. Temenos Core connects BSI’s banking environment with digital channels, payment systems, ATMs, middleware, reporting platforms and other internal applications, while providing a centralized view of customer information.
Turning modernization into measurable results
Following its May 2026 go-live, BSI is already realizing significant operational benefits from the new platform. While the full business impact will emerge over time, early results demonstrate substantial gains in efficiency, scalability and operational resilience.
The bank’s key overnight Close of Business process now completes in just 1 hour 49 minutes, compared to almost 4 hours previously, reducing processing time by more than 50%. This shorter batch window creates additional operational headroom, giving BSI greater capacity to support future growth and increasing transaction volumes without extending overnight processing schedules.
The acceleration of the Close of Business cycle also delivers downstream benefits. Revenue sharing calculations and allocations are now completed twice as fast, enabling stakeholders to receive allocation results significantly earlier and supporting faster operational decision-making.
Data processing and reporting activities have also improved considerably. Critical processes such as Populate Account, Populate Schedule Past and Populate Customer have been reduced by between 57% and 75%, while the shorter overnight batch window enables faster data extraction and improved reporting availability across the business.
To support sophisticated corporate banking, trade and cash management services, BSI adopted the latest Temenos containerized technology stack. The result was a 340% increase in transaction processing throughput, achieving 8,800 transactions per second and creating significant capacity for future growth.
Together, these improvements are helping BSI increase operational productivity, scale more efficiently, and provide business users with faster access to the information they need to support daily operations.
A partnership built for what comes next
The transformation also reinforced BSI’s long-standing relationship with Temenos and its implementation partners.
Rendy states, “We’ve worked with Temenos for many years, and over that time we’ve built a strong working relationship.”
Temenos worked closely with BSI and its partners from planning through testing, implementation and stabilization. The teams maintained regular communication, aligned priorities and worked together to resolve challenges throughout the project.
“It wasn’t simply about delivering software. We had regular discussions, aligned on priorities, and worked together to address challenges as they arose,” explains Rendy.
Laying the foundation for the future
The bank will continue to build on its modernized platform, focusing on continuous improvement while using its new capabilities to support new business initiatives, improve operational efficiency and enhance the digital experience for its customers.
BSI also sees AI as an important future enabler, with potential applications ranging from automating routine processes and generating faster insights to fraud detection, risk management and personalized customer services. With its core now running on a modern technology architecture, BSI is better positioned to explore these opportunities over time.
For Indonesia’s largest Islamic bank, the project represents far more than a successful core banking upgrade. It gives BSI the technology platform and operational capabilities to support its ambition of becoming one of the world’s top five Islamic banks, while creating a foundation for continued growth, innovation and expansion.
We partnered successfully with Systems Limited
Systems Limited is a global technology public limited company founded in 1977 with the mission to offer holistic transformations to its clients.
We partnered successfully with Oracle
Temenos Core Banking aligned with Oracle technologies presents financial institutions with a modern core banking system that allows the bank to build an application infrastructure that does what it needs today, while providing the flexibility needed to respond to whatever tomorrow brings.
We partnered successfully with Red Hat
Providing a clear modernization path to adopting a cloud strategy for core banking, digital banking, wealth management, fund management, and payments systems.
