The financial services industry has faced unprecedented change over the last few years. Banks are under increased pressure to compete with new entrants such as fintechs, big tech and challenger banks and to better serve rapidly evolving customer demands.
They also need to address rigorous security and regulatory demands and they also face profitability issues. These increasing demands require a renewed focus on modernizing core banking applications. This will give them the agility to experiment with new business models, create differentiated customer experience and accelerate time to value.
Today, we are announcing a new services partnership agreement between IBM Consulting and Temenos to help banks transform by progressively modernizing at scale, accelerating their digital transformation and omnichannel experience, while also supporting them in their journey to hybrid cloud.
As part of the expanded collaboration, Temenos will focus on IBM LinuxONE as the infrastructure to run Temenos software for tier-one banks.
IBM and Temenos together are designed to help tier-one banks reduce costs by modernizing their core on LinuxONE
At the center of this modernization must sit an industry-proven banking solution like Temenos open platform for composable banking and a server like IBM LinuxONE. Temenos open platform can easily integrate into any complex tier-one landscape, while IBM LinuxONE is engineered to deliver the highest quality of security, reliability, scalability and data-driven customer engagements. This combination is designed for banks to easily upgrade their technology without disruption to their mission-critical workloads.
Today’s announcement builds on Temenos’ and IBM’s long-standing collaboration to help financial institutions around the world deploy next-generation banking technology, reduce costs, and become more profitable. With our joint go-to-market strategy, banks can leverage the performance of Temenos open banking platform combined with IBM LinuxONE and IBM Consulting’s professional services to help mitigate risk of their systems and modernize with hybrid cloud.
Controlling Costs and Meeting Sustainability Goals
IBM and Temenos can help banks build a modern banking platform that is designed to improve business agility and reduce overall costs. Temenos open platform for composable banking on IBM LinuxONE operates at a fraction of the cost and offers scalability, resilience, and speed to market on a highly secured platform.
According to an IBM study ‘Choosing a platform for the Temenos Transact banking solution’, for the period between September 2019 thru September 2021, deploying Temenos on LinuxONE could help banks lower their Total Cost of Ownership (TCO) over three years by up to 60% at 1000 TPS versus the compared x86 alternatives. LinuxONE’s high performance and low latency has been engineered to help banks have leaner technology stacks, which can reduce infrastructure and maintenance costs. Banks moving to Temenos open platform on LinuxONE can select from several commercial databases.
In addition to modernization and cost, sustainability is another issue that has been thrust to the forefront of board room conversations putting pressure on banking CEOs. According to IBM’s IBV study, Pathways in transformative sustainability: banking CEOs own their impact, “the transformation of banks’ data centers is an opportunity to further advance sustainability by increasing the adoption of renewable energy sources.2”
Through the consolidation of cores and by extension physical servers, IBM LinuxONE can help banks meet these goals. For example, in 2020 an IBM client moved their Linux applications from 47 x86 cores to 11 IFLs on two LinuxONE servers. The energy consumption for the organization is projected to be reduced by 80%, resulting in 946 fewer metric tons of CO2 emissions over five years3.
All client examples cited or described are presented as illustrations of the manner in which some clients have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual client configurations and conditions. Generally, expected results cannot be provided as each client’s results will depend entirely on the client’s systems.
Part of the IBM Ecosystem, Temenos has collaborated with IBM over the course of a years-long relationship to support financial institutions around the world and deploy next-generation banking technology. For more information on how to leverage Temenos on IBM LinuxONE please visit https://www.ibm.com/it-infrastructure/linuxone.
1 Choosing a platform for the Temenos Transact banking solution – A platform comparison of IBM LinuxONE III versus x86. https://www.ibm.com/downloads/cas/MJDPLD24
2 Pathways in transformative sustainability: banking CEOs own their impact https://www.ibm.com/thought-leadership/institute-business-value/blog/pathways-sustainability-banking-ceos