We believe that our focus on vision and innovation was key to Temenos being positioned by Gartner as a leader in its latest report on global retail core banking, writes Carl Robertson.
For the eighth consecutive time we have been named among the leaders in the Gartner Magic Quadrant for Global Retail Core Banking.
This is a significant achievement for Temenos for two reasons. First, we believe the Gartner report is regarded by bank CEOs and CIOs as required reading when considering core banking transformation programs. Second, at Temenos we believe that this year's report reveals that the past 12 months have been a watershed for global core retail banking platform providers.
The core banking vendor industry is maturing with consolidation. Where last year 17 companies and products made it into Gartner's report, this year there are just 11.
We were positioned the furthest for our completeness of vision in core banking. We believe this is because we deliver the innovative products our customers need thanks to our huge investment in research and development. We spend 20 percent of our global annual revenues (more than twice the industry average and currently more than $100m per year) on R&D, helping us develop products that lead the field. Cumulatively, we have spent more than $1.6bn on development. The better we become, the more successful we are, driving a virtuous circle of investment and revenue growth.
But it's not just in core banking where we lead. Temenos is also vendor of choice for front-to-back transformation, with IBS naming us the best-selling "Digital Banking and Channels System 2016", selling twice as many as our nearest competitor. And for nine out of the past 10 years, we have been ranked the best-selling back office system with 43 deals, selling twice as many as our nearest competitor.
Temenos MarketPlace (with more than 100 products from 50 providers) was recognized as one of the largest of its kind, and in combination with our annual Innovation Jam, and our passion for open banking, at Temenos we make innovation a priority. Our operational activities are ranked as very good, with special mention of the timely, balanced and frequent product releases.
These achievements are no accident. We believe that they are recognition of the success of our strategy to focus on digital banking. We provide innovative solutions and make it as easy as possible for banks and financial institutions to embark on and successfully complete core digital transformation. But more than that, it reinforces our belief that when it comes to providing core banking solutions, the winner will take it all.
Fewer vendors made it into the report and we can see that a clear gap is opening up between the leaders in core banking and the rest. The more customers you have, the more investment you can make, the better the products will be, the more customers you have, etc. Today, 41 of the world's top 50 banks run on Temenos; some 500 million banking customers rely on Temenos for their daily banking needs and our systems process 10 billion transactions every year.
We are honoured to be included in the Gartner Magic Quadrant and, for us the full report underlines just how important it is to have not only the vision but the products and delivery mechanisms to help customers succeed.
Our success is the result of great teamwork and is a product of the trust our customers have in us.
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We believe that our focus on vision and innovation was key to Temenos being positioned by Gartner as a leader in its latest report on global retail core banking