The banking world is undergoing a paradigm shift in today’s rapidly evolving financial landscape. Traditional institutions are at a crossroads, faced with the daunting task of adapting to a digital-first era. As technology companies increasingly shape and distribute financial services, the need for innovation, agility, and sustainability has never been more urgent. Adopting Cloud and Software-as-a-Service (SaaS) models is the key to addressing these challenges.

This new white paper explores the trends driving the SaaS model. We highlight how the approach taken by SaaS vendors like Temenos is helping boost productivity while reducing costs and creating new opportunities through composable banking. We evidence it with examples of financial organisations that employ SaaS and have achieved significant performance and customer experience gains.

Embrace the Power of SaaS for Banking Evolution

Cloud technology has already proven its transformative capabilities by providing financial institutions with a more flexible, scalable, and secure approach to managing their IT systems. The migration to a cloud-based SaaS model has become a competitive necessity. It offers an end-to-end digital infrastructure that enhances performance, ensures always-on availability, and elevates service delivery. In an era where customers expect one-click convenience, functionality, and engaging experiences, SaaS is the next generation of IT outsourcing that enables banks to stay competitive.

No more worrying about maintaining complex software

With SaaS, banks no longer bear the financial burdens and constraints of maintaining and upgrading hardware and software through on-prem hosting. Scalability and security are greatly enhanced, bolstering regulatory compliance and ESG commitments. Core services, such as payment processing, become streamlined and refined. Furthermore, SaaS facilitates the integration of advanced technologies like AI and machine learning, allowing banks to introduce embedded finance and new services to the market swiftly.

Market Overview: Adapting to New Market Forces

To thrive in the digital-first era, banks must emulate the strategies of tech giants, who leverage digital channels to deeply understand their customers, aligning their needs with tailor-made services. Banks need to harness vast amounts of data and convert it into descriptive, predictive, and prescriptive analytics, akin to the practices of GAFAs (Google, Apple, Facebook, and Amazon). SaaS excels at onboarding and supporting advanced analytics, AI, and machine learning to process this data.

Legacy technology, managed in-house, constrains banks from delivering timely innovation and addressing environmental concerns. The slow pace of incremental tech upgrades cannot keep up with the demands of the modern market, leaving banks exposed to fintech competition and regulatory pressures.

Capturing the ‘Netflix Effect’ with SaaS

Most banks have already embraced the cloud, with 72% of IT executives favouring a cloud strategy for products and services. By implementing SaaS end-to-end, banks can manufacture and distribute highly personalized products and services on demand, 24/7/365. In other words, working with a SaaS provider can achieve the ‘Netflix effect’ for banks, providing an exceptional customer experience.

Four Key Drivers for SaaS Adoption

New Banking and Payment Services

SaaS enables banks to provide tailored products and services across any channel, meeting the expectations of e-commerce and mobile commerce trends

Environmental, Social & Governance (ESG)

SaaS and cloud technology significantly reduce carbon emissions and improve sustainability, helping banks meet environmental targets beyond Scope 1 emissions.

Competition

Fintechs and challengers use disruptive technologies to offer competitive pricing and superior customer experiences. Banks must embrace SaaS to stay competitive in this evolving landscape.

Value

SaaS provides an end-to-end solution that aligns with operational, regulatory, and customer-centric goals, enabling banks to evolve, innovate, and compete effectively in the digital economy.

SaaS in Action: Real-world Success Stories

Our white paper details the experiences of Alex Bank, Flowe and Barko Financial Services who all use Temenos SaaS.

Learn More

Collaborate with Temenos for SaaS Transformation

The adoption of SaaS is becoming pivotal in the financial industry’s evolution. Incumbents and emerging players alike must make SaaS a fundamental part of their operations and collaborate with digital transformation experts like Temenos. Temenos Banking Cloud supports over 700 SaaS customers worldwide, providing continuous updates, scalability, governance, security, and depth of service.

Download The Whitepaper Today To Find Out More:

• Omdia recognized that Temenos was a high performer across the board and achieved the highest scores overall for market alignment and innovation, in addition to performing strongly for Temenos Banking Cloud’s broader platform capabilities.
• Omdia highlights the strength of the Temenos solution which offers innovation in the areas of open products for the creation of highly configurable financial products (i.e., smart products), AI and ESG.
• Other strengths referenced by Omdia include Temenos’ (X)AI-enabled analytics which are embedded throughout the platform.

According to Philip Benton, Senior Analyst, Omdia:

“Temenos should appear on your shortlist, particularly if you are seeking a platform that enables rapid new product launches and innovation.”

Download the report to learn more about why Omdia recognizes Temenos as a leader among Cloud-based Core Banking providers.

The complexity of products, processes and transactions in corporate banking has so far resulted in relatively lower levels of digitization compared to retail. Yet business owners increasingly expect simple, holistic processes and a seamless customer experience.

Open banking provides a unique opportunity for banks to meet this need, by enabling increased automation and personalization of services for business customers. At the same time, it enables banks to move beyond traditional banking activities and open up new revenue streams through Banking-as-a-Service (BaaS).

Find out more about the opportunities in open banking for corporates and SMEs in this whitepaper.

About the Author

Kanika Hope is the Chief Strategy Officer, leading Temenos’ global business strategy with responsibility for market intelligence, strategic sales support and value-based selling. Kanika joined Temenos in 2015 as Global Strategic Business Development Director and she laid the foundation of value selling in Temenos. She established the renowned Temenos Value Benchmark program and an influential series of thought leadership insights on strategic banking issues and trends.

Kanika has nearly 30 years experience in banking technology and operations and has held senior roles within SAP, McKinsey and General Electric. Kanika holds an MBA from the Indian Institute of Management, Bangalore.

Temenos advances platform capabilities to accelerate Banking-as-a-Service

Temenos is the banking platform of choice for embedded finance, enabling licensed banks and BaaS providers to offer BaaS to brands and fintechs

Want to harness the power of BaaS?

From retailers and airlines, to ride-sharing apps and coffee chains, brands are embedding financial services into their online and mobile offerings to increase revenues, build customer loyalty and gain deeper insights about them.

How Temenos challenges the banking industry’s conventions

The way people bank is evolving. Banking services are increasingly embedded in people’s everyday

lives – banking itself is becoming a journey and an experience.

Download the whitepaper today to find out more: