The global banking landscape is changing fast. The digital revolution has made consumers more demanding. They want banking on their terms; when and where it is most convenient. And disruptive technology like cloud, AI and APIs is making this a reality. No more so than in Australia, which is at the forefront of digital banking and fintech innovation.
Temenos recently held an industry forum in Sydney on the theme of “Everyone’s Banking Platform” — to explore how these market forces and global economic dynamics are shaping the future of banking in the local market.
With this in mind, we’re taking a closer look at the main takeaways from the event.
The new horizon
Our regional forum engages global and regional banks, Fintechs and hyperscalers in a discussion on how the banking industry should both respond and reposition itself to navigate an evolving banking landscape more effectively. These changes revolve around huge disruption that financial institutions are seeing in the industry, including:
- Digitally savvy customers with ever-increasing expectations.
- High adoption of disruptive technology like AI, Cloud, APIs and analytics.
- Progressing open banking and regulation requirements.
- Continuous technological advancements such as distributed ledgers, augmented reality, quantum computing and Metaverses.
- Fierce competition across multiple areas between traditional banks and new players.
Facing immense changes throughout the banking landscape, financial organizations are responding with new banking business models, which include the considerable growth of Banking as a Service (BaaS). With BaaS, financial providers manufacture products and drive revenue in a volume play by distributing through the channels of non-banks such as Buy Now Pay Later — often with massive customer reach. This will be critical to consider moving forward with analysts predicting the BaaS market will be worth $3.6 trillion by 2030.
Australia leads the way
The number of Fintech companies in the Australian banking sector has seen continuous year-on-year growth. In fact, the Fintech industry, worth $250 million 5 years ago, is now estimated to be valued at $4 billion. This highlights the new players, products and business models that are emerging, with Australia taking a clear lead throughout these transformations.
These changes represent the movement of key markets, like the Australian banking sector, along the continuum from traditional banking to Open Banking — a collaborative model in which banking data is shared through APIs to deliver new capabilities to customers.
While a majority of markets around the world consider Open Banking a trigger for significant increases in fintech investments, Australia has already achieved these levels. The considerable growth in the Australian fintech segment indicates that Australia is moving further down the continuum toward open finance and platform ecosystems.
An open platform for composable banking
For 28 years, Temenos has been on a mission to put customers at the forefront of banking. By helping them face industry challenges and seize valuable opportunities, we’ve made banking better for over 1.2 billion people today. Fuelled by industry-leading investment in research and development, Temenos offers rich, localized and packaged functionality with open technology — which runs on any hardware, database or platform and ensures upgradability.
However, acknowledging that success with emerging business models in banking requires the right technology and platform for agility, scale and innovation. It’s why we’ve evolved our technology and architecture into an open platform for composable banking. With our platform, financial organizations can:
- Compose new banking solutions, based on granular banking capabilities.
- Integrate with third-party solutions on our fintech ecosystem, the Temenos Exchange.
- Consume solutions any which way you want, including on-premise, on any private or public cloud or as SaaS.
Becoming everyone’s banking platform
‘Everyone’s Banking Platform’ is not just a marketing slogan. The words were carefully chosen to communicate our vision and ambition.
We’ve built a platform where services can be built and consumed by everyone, regardless of the segment you serve, your company size and location or whether you’re an established bank, a challenger or a Fintech.
This platform will help banks operate more cost efficiently, with more agility, enabling them to compete better and grow their revenues. Developers and ISVs will benefit by selling their solutions through the platform’s open marketplace. Non-banks will gain by embedding financial services into their brand offer. And end-users will win because banking will seamlessly integrate into their everyday lives through the platform.
Next generation wealth management
While the Temenos regional forum focused on the future of banking in Australia, Temenos also has a very significant and successful wealth management offering that will be critical to consider moving forward. Why is this so important? The wealth management and wealth advisory segment in Australia are experiencing:
- Increased compliance costs.
- Higher educational and qualification standards.
- An exodus of advisers from the market.
- A concentration at the wealthier end of the addressable market.
- A significantly widened advice gap – addressing the growing segment of neglected customers that chose not to or cannot afford financial advice
With a strong client base, including some of the largest global private banks, Temenos Wealth is the de facto software solution for the Private Wealth Management industry. It is unique in its breadth and depth, with digital customer experience, hyper-personalized services, and highly automated processes that enable our clients to service Ultra High Net Worth Individuals and Mass Affluent clients alike.
Moving Forward with Support from Temenos
The Temenos Regional Forum Sydney aimed to reshape the perspectives of the Australian banking community on what’s possible as they continue to lead the way in digital banking. As this financial sector navigates the emergence of new banking models and next-generation wealth management, they need a dependable partner along the way and Temenos can help.
Our Temenos ecosystem of solutions is designed to help organizations engage and support banking customers, grow market share and scale banking operations efficiently and effortlessly. We’re empowering everyone to build tomorrow’s banks, today. To learn more about everybody’s banking platform, contact us.