GENEVA, Switzerland – January 18, 2023 – Temenos (SIX: TEMN) today launched the next generation of its AI-driven, Corporate Lending solution to enable banks to consolidate global commercial loan portfolios and unify servicing all on the Temenos banking platform.
The solution simplifies complex loan processing and lifecycle management across lending lines and geographies, addressing the needs of large tier one as well as regional banks, many of which are struggling to seize the growth opportunity in corporate lending due to disparate systems and a lack of integration.
Pat O’Sullivan, IT Director, Customer Platforms, Allied Irish Bank, commented:
“With Temenos, Allied Irish Bank is working to streamline business credit onto a single platform to deliver a modern, flexible solution that will provide business credit capabilities to all AIB’s customers. With Temenos, we are consolidating disparate systems, and removing complex, manual processes, which in turn reduces cost, and it enables us to rapidly respond to our customer demands and enhance our service. This is one of the most fundamentally important and strategic programs underway at AIB and is at the center of our ambition to transform the bank.”
Today, most banks are using decades old, different systems for different types of corporate and SME lending, for example multiple systems for bilateral loans, for asset finance, and syndicated lending which results in complex workflows and increased servicing costs.
With Temenos next-generation Corporate Lending solution banks can efficiently service a wide range of loan types – from high volume bilateral loans to the most complex corporate credits – with best-practice automation and workflow for the entire loan servicing lifecycle available in the Corporate Model Bank. The lending process centers around transactions and activities, involving many parties such as borrowers, and bank personnel from many departments. The liaisons must be routed, approved, tracked and audited within Service Level Agreements (SLAs). Temenos Explainable AI will be used to identify opportunities for task and process automation as well as areas for load balancing high value resources to key transactions.
Banks also benefit from a single golden source of data across the commercial loan portfolio, and global customer entities, for better insight and reporting and to deliver a superior customer experience.
David O’Connell, Strategic Advisor, Aite-Novarica Group, said:
“Temenos’ expanding presence in the loan servicing market provides additional options for banks looking to achieve increased ROI via excellence in loan servicing. According to Aite-Novarica’s research, only 32% of commercial lenders service their borrowers with excellence. The lost opportunity here is significant: financial institutions that service commercial loans with excellence get a great return on the required investment because excellent loan servicing makes borrowers more likely to renew and less price sensitive. Temenos’ launch of their next-generation Corporate Lending solution provides additional options for banks looking to achieve increased ROI via excellence in loan servicing, something which we have seen too infrequently in the past but hope to see more of in the years ahead.”
Prema Varadhan, Chief Product and Technology Officer, Temenos, commented:
“Standardizing processes across lending lines and automating the loan servicing lifecycle is critical to reducing costs and increasing margins. With the next-generation, AI-powered Corporate Lending solution, we build on the corporate lending specialization we have added in recent years and bring the value of Temenos’ open platform approach to make it easy to integrate, configure, upgrade and maintain. Temenos clients can further benefit from powerful loan origination capabilities to unlock the full lending value chain.
“Temenos is uniquely positioned to unify operations across commercial lending asset classes to help banks reduce costs and win new business. With clients such as Allied Irish Bank in Ireland, Commerce Bank in the USA, and Al Rajhi in Saudi Arabia, corporate banking is a key focus for Temenos, and we continue to invest heavily to strengthen our offerings in this area.”
Corporate Loan Origination continues to heat up with an annual IT spend of $1.4bn growing at c.19% per year over the next four years according to Aite-Novarica Group. Temenos’ continued expansion in the loan origination space offers banks the ability to capitalize on this growth with a compelling out-of-the box lending proposition. With capabilities integrated into Temenos Infinity, the digital banking platform, banks can benefit from the systematization and standardization of loan initiation and granting. The corporate origination solution is also available as a standalone. This powerful end-to-end corporate lending solution, significantly enhances Temenos corporate banking offering and open up more opportunities with larger banks in servicing and origination.
Temenos investment and innovation in corporate banking is recognized by Forrester, being named a Leader in The Forrester Wave™: Digital Banking Processing Platforms for Corporate Banking, Q3 2022. According to the report, “Temenos sets the pace in AI-powered banking capabilities and application architecture” with a strategy that “shows no weak spots”.