Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
Launched in 2002, Rawbank aims to drive economic growth in the Democratic Republic of the Congo by providing financial services to retail, business, and corporate clients. In just over 20 years, Rawbank has expanded to become the largest commercial bank in the Democratic Republic of Congo.
As the bank expanded its share of the market, it needed to scaleup in its lending division. Previously, Rawbank assessed loan applications manually—a time-consuming and labor-intensive method that offered limited insight into the probability of clients defaulting on repayments. Moving forward, the bank wanted to improve its decision making and minimize exposure to risk by gaining a deeper understanding of applicants. In addition, the bank looked to accelerate the approvals process to deliver a higher standard of service.
The use of Temenos XAI enabled us to gain the full benefits of AI in managing risk and increasing profits while using models which we can easily understand, analyze and augment with our expertise. I have been really impressed with the level of service we get from Temenos.”
Nadeem Akhtar, Director Performance Branch Network at Rawbank
Realizing that automation offered the smartest approach, Rawbank decided to use the Temenos Explainable AI (XAI) platform to streamline and improve its risk assessment for retail, SME and Corporate lending. The solution will enable the bank to rapidly develop, deploy,andintegrate predictive risk models into its credit scoring workflows to determine the likelihood of applicants meeting repayment schedules. XAI will also provide transparency into how it calculates credit scores, enabling Rawbank to explain lending decisions to clients and regulatory authorities.
With XAI providing deeper insight into loan applications, Rawbank expects to reduce its loss given default rate and increase net profits on lending considerably. As well as protecting against default risk, increased levels of automation will improve the speed and efficiency of loan approvals, ensuring higher quality of service. And the bank will be able to continuously optimize the predictive models to ensure accuracy.
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
The first B Corp bank in Australia, Beyond Bank, is 100% owned by its customers. The bank is dedicated to the well-being of both its clients and the communities while offering its customers a better rate, fairer fees, responsible lending, superior customer service, and a multi-award-winning internet banking and mobile app.
As a B Corp. bank, Beyond Bank is certified as a business that meets high standards of social and environmental impact, ensuring its practices and outputs benefit all people, communities, and the planet. The bank is committed to supporting and helping the community thrive.
Temenos Journey Manager was key to help us to integrate in the back end, with the CRM, the core banking, and the tech partners.”
Loïc tassinari, Digital Experience Manager at Beyond Bank
Beyond Bank wanted to ensure customers trying to open accounts via their mobile phones enjoyed a straightforward, friction-free experience. It is important to provide clients with more cognitively light digital experiences. To develop a new omnichannel acquisition journey for its products and services, Beyond Bank implemented Temenos digital banking. After integrating the Temenos platform with its core banking and identity verification systems, Beyond Bank launched a single, mobile-friendly onboarding process for nine separate products.
Beyond Bank offers multiple ways for client interaction, whether via local branches, call centers, or through the award-winning internet banking and mobile app. User feedback has been overwhelmingly positive, and the bank uses the highly scalable Temenos solution to support a further 80 account servicing processes. Thanks to the Temenos Journey Manager online form at Beyond Bank is simpleandquick to use, enabling customers to open a membership in under 10 minutes.
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
At a Glance
● Supports 40% growth in customer volumes and 40% boost in assets under management
● Enables the launch of first-of-a-kind funds transfer services via mobile and online
● 50% faster to launch new products to the market
● Went live in just 10 months despite significant disruption caused by the COVID-19 pandemic
● Breaks new ground as the 1st Libyan bank to deploy the Temenos digital platform
Already one of the top banks in Libya, Assaray Trade and Investment Bank (ATIB) has ambitious plans to become the leading digital bank not only in its home market but across the whole North African region. To achieve this, ATIB focuses on delivering first-class services that win growing numbers of customers, while building streamlined internal operations to attract the very best banking talents.
Farouk K. Laabidi, General Manager, ATIB, explains: “10 years ago, ATIB primarily focused its efforts on the corporate market. However, with the ever-increasing demand for retail online and mobile banking services among consumers, especially in the aftermath of the COVID-19 pandemic, the bank has strategically expanded its services into the retail banking space. Targeting these digitally-savvy customers is a key strategic goal for us.”
Setting the standard for innovation
Operating in Libya presents significant challenges for banks, as the country’s national infrastructure is currently in the process of development and its political situation has experienced some periods of unpredictability, which can present slowness to growth. Many banks have been unrushed to embrace digital technologies, with some not fully integrated to the national payment system and unable to accept all types of electronic transfers. But where other service providers see limitations, ATIB recognizes huge opportunities for building long-term success. ATIB believes that innovation is a matter of culture, it starts from the top, and all employees are encouraged to embrace it.
Farouk K. Laabidi continues: “We have focused on digital transformation since 2014, bringing many innovative services to market. For example, during the difficult times of cash shortages in the period of 2016–2019, we were one of the leading banks to launch reliable prepaid payment cards and offer an electronic wallet application that allows users to purchase goods via their mobile devices. As well as enhancing and developing new digital services, we are now excited by the possibilities of open banking.”
However, ATIB realized that its existing core and digital banking solutions were starting to restrict its ability to innovate. Building tailored services for different customer segments was a difficult, time-consuming process, and the bank did not have the modern API functionality to interface with third-party services. To sharpen its competitive edge, ATIB started to look for a more advanced, customer-centric solution.
Choosing a solution with extensive capabilities
Keen to overhaul and modernize many components of its banking infrastructure, ATIB looked for a partner with extensive knowledge and experience of large-scale transformation projects. The bank decided to deploy an integrated suite of core and digital banking solutions from Temenos including Temenos Analytics, and Temenos Payments.
“We knew that Temenos is a global leader for core banking solutions, and they demonstrated deep understanding of our challenges and the future of the banking sector. Temenos technology is very impressive, especially the product development and API integration capabilities, which would allow us to connect to many different third-party services.”
Farouk Laadibi, General Manager at ATIB
Adopting a remote deployment model
Working with Temenos and Temenos business partner Prema Consulting, ATIB kicked off the implementation of the solutions, starting with Temenos core banking in a two-phase project that was completed in just ten months. To optimize performance and efficiency, the bank runs the core platform on the Microsoft Azure public cloud.
Dunia M. Ajaj, Head of PMO at ATIB, comments: “The implementation was complex, and we experienced huge disruption due to the COVID-19 pandemic. After one month we faced severe travel restrictions, but Temenos showed great flexibility by switching to a remote deployment strategy. Going live in ten months was a great result, with Temenos delivering excellent support to keep the project moving forward.”
Muawiya Abu Jubain, CEO, Prema-C, added “We believe that ATIB’s project is a strategic project for us, knowing the ambitions the bank management and employees have in deploying the world renowned Temenos core banking system. And we wanted to be part of this exciting journey that brings growth and innovation to ATIB. Despite the pandemic, we managed to reach the bank’s goal of going live in a record time of ten months. This could have never been achieved without the dedication of ATIB’s team, Prema consultants, and the Temenos project management team and consultants.”
Transforming the customer experience
Using Temenos core banking, ATIB enhanced many of its customer services. For example, the bank used the rich integration functionality of the Temenos solution to deliver greater flexibility to customers using its prepaid payment cards. Whenever users need to top up their card with funds from their electronic wallet or account, they can now manage the process quickly and easily via their mobile device.
“Temenos core banking delivers so many great capabilities; from high levels of security to close control over financing arrangements. We have also halved our time to market for new products and services with the Temenos solution.”
Abdulmohaimen M. Matoug, Head of Digital Transformation (Revolv) at ATIB
Using Temenos Analytics, ATIB adopted a more customer-centric approach to development, as Farouk K. Laabidi explains: “With our old core platform, we could not gain a detailed picture of customer behavior. Using Temenos Analytics, we analyze their preferences and requirements in depth, and build more relevant, personalized offerings closely aligned with their financial needs and lifestyles.”
Breaking new ground in the Libyan market
Since then, ATIB has worked with Prema Consulting to implement Temenos digital banking platform – becoming the first bank in North Africa to harness the cutting-edge capabilities of the solution. The bank went live on an on-premises instance of the solution in a phased deployment process, with the business partner helping to integrate the platform with Temenos core banking and a series of third-party solutions.
ATIB has used Temenos to develop and launch a brand new feature-rich digital banking service for retail and corporate clients: ATIB Online. Accessible web and mobile app, that allows users to manage their accounts, monitor transactions, top up local and international payment cards in various currencies, and purchase mobile phone vouchers thanks to integrations with several network operators and internet service providers.
In another breakthrough move, ATIB recently added transferring funds between two bank accounts within Libya, as Farouk K Laabidi explains: “We added an integration with the national payment system to allow users to transfer money online or via their mobile. This represents a first-of-a-kind service for the Libyan market, so once again we are leading the way in terms of innovation.”
Offering customers the speed and convenience of transacting online without having to head to a bank branch has had a hugely positive impact on satisfaction levels. And ATIB Bank plans to add more products and services to the digital application, as Farouk K Laabidi notes: “We are around 60 percent of the way towards reaching our digitalization objectives. We are planning to use Temenos digital banking to create online loan origination and onboarding workflows in 2024, and we will also implement Temenos Payments Hub.”
Reaching new customers
The partnership with Temenos is helping ATIB to achieve its goal of increasing market share and becoming one of the banking leaders in Libya and beyond. The enhanced portfolio of products and services has contributed to a 40 percent boost in customer volumes, and the bank has grown its assets under management by 40 percent since partnering with Temenos. In particular, during the first three months of offering ATIB Online, the platform gained 5,000 new users—and is now aiming to onboard 20,000 by the end of 2023, and 100,000 by the end of 2026.
“Working with the Temenos solutions, we are reaching more clients than ever before. Not only are we consolidating our leadership in the corporate banking space, but we are extending our share of the retail banking market, too. As we launch more digital services with Temenos digital banking platform, we are confident that this upwards trend will continue well into the future.”
Dunia M. Ajaj, Head of PMO at ATIB
A Step Ahead of the Competition
Within ATIB, the Temenos solutions have had a significant impact on workflow efficiency. Higher levels of automation removed the need for manual interventions during many key processes, enabling employees to work more productively and reducing overall costs. Furthermore, this focus on efficiency has helped ATIB reduce its cost-to-income by up to 15 percent, and to achieve a strong return on equity of between 15 and 17 percent.
ATIB also believes that deploying a modern, world-leading suite of banking solutions will help to attract the brightest bankers in Libya.
As the Libyan banking market becomes more digitalized and embraces Open Banking, ATIB is in prime position to take full advantage, as Abdulmohaimen M. Matoug explains: “The Temenos solutions will enable us to integrate with many different partners, not only among financial services providers but also airlines and utilities companies to provide customers with more convenient payment methods.”
“With Temenos, we believe the sky is the limit on what we can achieve. Whatever innovative ideas we conceive, we know we can develop and bring them to market using the solutions. Thanks to our partnership with Temenos, we are moving towards our goal of becoming the leading digital bank in Libya and the wider region and staying well ahead of our competition.”
Microsoft’s Financial Services group helps financial firms leverage technology to amplify the impact their people can deliver to drive business success.
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
At a Glance
• 1.5 million new digital accounts, including 78% net-new clients, since launch of new mobile app
• 4.9 out of five rating for unique mobile app that provides access to seven financial services
• 100% increase in market share, reaching top-four position in Taiwan for digital banking accounts
• 3x faster time to market for new services with latest upgrade of Temenos core banking
In a crowded marketplace, you need to think outside the box and offer something unique to succeed. That’s the challenge for Bank SinoPac operating in Taiwan, one of the most oversaturated banking markets in the Asia Pacific region. Part of Taiwanese finance group SinoPac Holdings, the bank serves individual and corporate clients and also operates in China, Hong Kong, Macao, Vietnam, and the United States.
Irene Huang, Chief Digital Officer, Bank SinoPac, explains: “We are competing against 38 commercial banks for a slice of a limited market. But there are opportunities, too. For example, there is high demand for digital and mobile banking services among younger people, especially those we call High Earners, Not Rich Yet or HENRYs, who form an important target demographic.”
One key component in Bank SinoPac’s strategy is a focus on digital innovation, as Irene Huang adds: “On the one hand, it’s about embedding new technologies, such as open APIs and artificial intelligence (AI). But it’s also about the right mindset, and always thinking of the customer experience when designing products. While many Taiwanese banks are conservative in their thinking, we adopt a more innovative approach.”
Taking the first steps on the transformation journey
This strategy dates back as far as 2009, when Bank SinoPac began to transform its core banking environment. To replace inflexible legacy systems, the bank selected Temenos core banking. They migrated previously data related to three million customers onto the platform. The move led to major efficiency gains: close of business (COB) processes ran 70 percent faster, and infrastructure costs were cut in half.
We chose Temenos core banking for the modern architecture and full suite of core banking functionality, such as product development and secure data management. The deployment ran very smoothly, with excellent support from Temenos. Temenos has delivered the high stability and performance needed to support our domestic and international operations ever since.”
Irene Huang, Chief Digital Officer at Bank SinoPac
Entering the era of open banking
Since then, Bank SinoPac has worked with Temenos to upgrade the core platform in 2012 and 2020. The latest upgrade provided access to advanced API integration functionality, which enabled the bank to take advantage of the open finance initiative launched in Taiwan in 2020. The bank uses the open APIs to interface with the systems of 12 partner organizations and SinoPac Holdings subsidiaries.
“One of the best things about Temenos is they continuously roll out new functionality, which has allowed us to offer open banking services. The robust data governance capabilities of Temenos core banking help us comply with stringent local regulations. Plus, the platform gives us the scalability to support AI initiatives launched by SinoPac Holdings, which generate huge volumes of data.”
Irene Huang, Chief Digital Officer, Bank SinoPac
For the internal teams at Bank SinoPac, Temenos solution has proved easy to use, as Irene Huang confirms: “Temenos core banking is a very intuitive platform. For example, the preconfigured components simplify work such as product development, eliminating the need for us to write lines of code.”
Developing a first-of-a-kind mobile banking app
Using Temenos core banking has enabled Bank SinoPac to push ahead with its innovation strategy. For example, the latest upgrade helped the bank achieve a threefold improvement in time to market for new services. The solution also helped the bank kick off the development of new digital banking services, such as the groundbreaking DAWHO app, which stands for Digital Account with Happiness and Opulence.
Irene Huang explains: “In Taiwan, banks typically offer mobile apps to manage only one service, such as savings or payments, causing a fragmented experience when users want to complete several different transactions. With DAWHO, we aimed for an ‘ecosystem’ approach that would offer customers a frictionless digital journey and enable them to access multiple services through one portal.”
In a first for the Taiwanese market, DAWHO integrates seven services: deposits, wealth management, foreign exchange, personal loans, mortgages, credit cards, and securities—all provided by Bank SinoPac or a SinoPac Holdings subsidiary. Temenos core banking processes all customer transactions made through the DAWHO app and enables the bank to create and deploy new product features.
Attracting an extra million customers
The DAWHO app has been a huge success, giving Bank SinoPac a valuable differentiator in the Taiwanese market. User feedback has been extremely positive, with satisfaction scores of 4.9 out of five on the Apple App Store. And in just over three years since the launch of DAWHO, the bank has seen 1.5 million customers open digital accounts—including 78 percent, or 1.17 million, net-new clients.
The app has helped Bank SinoPac to reach younger market segments, as Irene Huang notes: “Before the launch of DAWHO, the average age of our retail banking customers was 47. Today, it is 33—indicating that we have increased our appeal to generations Y and Z, including the HENRYs.”
This surge in customer numbers translates into a much bigger slice of the Taiwanese market. “We are now ranked number four in Taiwan in terms of digital banking account holders,” explains Irene Huang. “And overall, we have grown our market share from around five to ten percent since the rollout of DAWHO.”
Refining the digital experience
In the latest collaboration, Bank SinoPac is using Temenos digital banking to reshape and unify the user experience across all its digital delivery channels—including its e-banking web portal and mobile app, DACARD payments app, and integrated DAWHO app. The project is progressing well, and the bank expects to complete the enhancements and launch the new digital ecosystem early in 2024.
Irene Huang adds: “Our design team finds Temenos digital banking very useful for developing new layouts for our digital portals. They also highlight the value of Temenos Visualizer, which gives them the tools to create a consistent look and feel for all of our apps. Once live, we will be able to roll out updates to all four digital portals at once through Temenos digital banking, rather than having to run them separately.”
“Temenos has been a very important partner to Bank SinoPac over many years. It’s a collaboration founded on great solutions and great support and we hope it will continue well into the future. Working with Temenos has enabled us to build innovative services that help us to stand out and succeed in an immensely challenging market, and to broaden our customer base.”
Irene Huang, Chief Digital Officer at Bank SinoPac
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
At a Glance
•1 million daily transactions processed seamlessly at peak times with Temenos core banking
• 3x faster time to market for new services compared to typical core systems
• 6 months to complete new acquired USD 2.2 billion bank integration that has tripled customer base
Established in the Kingdom of Bahrain in 2006, Al Salam Bank is a pioneering Sharia-compliant bank. It offers an extensive range of retail banking services, together with corporate banking, private banking, asset management, and treasury services, and serves tens of thousands of customers throughout the Kingdom.
Since its launch, Al Salam Bank has pursued an aggressive strategy of expansion, targeting triple-digit growth across all metrics and building income from diverse lines of business. This approach has helped Al Salam Bank establish itself as the fastest-growing bank in the region and an influential force in the Islamic banking industry.
Mohammed Saleh, VP of Information Technology at Al Salam Bank, comments: “Starting in 2010, we have made a series of high-profile acquisitions. Along with organic growth, this strategy has significantly increased our customer base, assets, and income, and helped Al Salam Bank grow into the biggest Islamic bank in Bahrain.”
Sustaining the growth curve
Although acquisitions have been the driving force behind Al Salam Bank’s impressive growth, they also add significant complexity to operations. Each acquisition brings additional employees and customers for the bank to onboard, along with new systems and processes to integrate. Managing this complexity takes a strong vision, strategy, and execution—backed by a firm technology foundation. For core banking technology, Al Salam Bank counts on Temenos, which has served as a key partner since day one.
“Our management originally chose Temenos core banking platform based on the strength of its reputation and the flexibility of its development and integration framework. Unlike other core banking systems, which can be quite rigid and hard to customize, Temenos makes it easy for us to adapt to new requirements from the business, and rapidly roll out new functionality and products. This agility is invaluable to us as a bank that’s constantly growing and changing.”
Mohammed Saleh, VP of Information Technology at Al Salam Bank
Today, Al Salam Bank uses Temenos core banking modules to support its operations—from deposits and treasury services to wealth management, all in compliance with Sharia banking principles.
Harnessing fast, flexible core banking
Used by Al Salam Bank for more than 15 years, Temenos has more than lived up to its reputation for core banking excellence. The bank has made multiple extensions, integrations, and upgrades on the platform, which has proven to be both fast and flexible.
Mohammed Saleh says: “Most of the banks that we have acquired over the years were using different core banking systems. When we migrated them onto Temenos, they really noticed the difference, especially in terms of the platform’s flexibility and speed to market for new servicers. For instance, at other banks, it can typically take six months to bring new products to market. With Temenos, we can bring new products to market three times faster, in no more than one to two months,.”
Managing millions of daily transactions
Supported by Temenos, Al Salam Bank has been able to maintain its impressive growth trajectory and keep its banking services in constant evolution. The past year in particular has been an important period of expansion and renewal for the bank. In early 2022, Al Salam Bank completed an upgrade of its core banking system.
Immediately after this upgrade, the bank made a major acquisition, taking on Ithmaar Bank’s consumer banking business in a transaction worth USD 2.2 billion. With the acquisition, Al Salam Bank tripled its customer base—and thanks to Temenos, was able to onboard the new customers and their data swiftly and smoothly.
“We transformed from different core banking system to map and migrate all of the customer data. We also followed governance from Temenos services teams to ensure that we followed the correct steps during the migration. This enabled us to complete the process in record time: the project took just six months from start to finish. What’s more, it was a very seamless transitions; we were able to bring the new business onto Temenos without any disruption to the customer experience.”
Mohammed Saleh, VP of Information Technology at Al Salam Bank
Growing strong with first-rate services
As Al Salam Bank continues its journey of expansion, it can count on Temenos to provide a scalable core banking foundation, capable of handling significantly higher customer and transaction volumes without missing a beat.
“When we tripled our customer base with our latest acquisition, we anticipated that there might be some performance or volume issues,” admits Mohammed Saleh. “Instead, it proved incredibly easy to scale our core banking environment within the same infrastructure footprint. This allowed us to avoid making additional hardware investments, helping to keep our costs down.”
“Alongside this increase in our customer base, we’ve seen a big jump in transactions. We now process around 400,000 transactions a day. At peak times, like at month end when salaries are paid, we can reach up to one million daily transactions. Temenos core banking supports it all flawlessly; it gives us great confidence to know that the platform can handle pretty much anything we throw at it.”
Mohammed Saleh, VP of Information Technology at Al Salam Bank
Reaching new heights of success
Buoyed by its latest acquisition, as well as the organic expansion of key business lines, Al Salam Bank has seen its banking business grow from strength to strength. In 2022, the bank posted a total operating income of USD 412 million, a 42 percent increase on the previous year. During the same period, Al Salam Bank saw net profits rise by 48 percent to reach more than USD 83 million.
Mohammed Saleh concludes: “Temenos has been a vital contributor to our remarkable growth. They’ve been by our side through it all, as we’ve made many acquisitions and expanded our horizons to new lines of business and customer segments. We consider Temenos to be much more than a technology provider; they are a truly invaluable partner to Al Salam Bank. Together, we can look ahead to a bright future.”
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
At a Glance
• Achieves first-mover advantage with the first fully digital banking services in Ethiopia
• 1,000+ new accounts opened each day, helping to increase financial inclusion
• 4 monthsto implement Temenos digital banking
• Takes secondsto process and approve loans applications, rather than months previously
Established in 1996, Bank of Abyssinia is currently the largest privately held bank in Ethiopia, and plans to become the leading commercial bank in East Africa by 2030. To reach this milestone, the bank is on a mission to grow its customer base, boosting financial inclusion in the country and beyond.
Helping more Ethiopians access banking services
According to the National Bank of Ethiopia, 75 percent of Ethiopians don’t have a bank account and up to 40 percent of all bank branches in the country are located near to the capital. For many years, banks have struggled to expand their reach beyond urban centers as setting up and running branches in rural locations involves significant upfront capital expenditure and high operational costs.
However, market conditions are rapidly changing in Ethiopia, as more people gain regular and reliable access to the internet. Bank of Abyssinia identified an opportunity to help more people access financial services by building a 100 percent digital banking offering.
Addis Tadesse, Director for Application Management at Bank of Abyssinia, explains: “We’ve offered digital banking services for many years, but most of these services still required our customers to visit a branch at some stage – for instance, to bring identification to open new accounts. Also, some processes such as loan applications required in-person consultations. If we could make the experience completely digital, we would be able to reach underserved communities in remote areas and dramatically increase our market share.”
With no other bank in Ethiopia offering a fully digital service, Bank of Abyssinia decided to pioneer the new approach and searched for a technology partner to support its initiative. Crucially, the bank targeted a solution provider that would help it deliver a truly seamless digital experience and ensure that it could meet strict regulatory requirements for new digital banks set by the National Bank of Ethiopia.
Finding the perfect solution
Bank of Abyssinia decided to build 100 percent digital banking services with Temenos. At the same time, the bank chose to upgrade its Temenos core banking system to ensure that it could provide customers with the very latest innovations in both digital and in-branch banking.
“We’ve used Temenos core banking for over 10 years and throughout that time we’ve seen how reliable, scalable and robust Temenos solutions are. For example, Temenos core banking has been easy to customize, and provides real-time reports that enable us to track the overall financial performance and efficiency of the bank. These in-depth insights help our executive leadership to make smarter operational decisions.”
Addis Tadesse, Director for Application Management at Bank of Abyssinia
Protecting against fraud
As the first bank in Ethiopia to launch entirely digital services, Bank of Abyssinia knew its new platform would be a potential target for fraudsters and cyber criminals. To safeguard against this risk, Bank of Abyssinia also decided to implement Temenos Financial Crime Mitigation—equipping the bank with the tools to spot and prevent illicit activity in near real-time.
“When your only interaction with new customers is online, it’s vital that you can verify their identity from the moment they sign up. With Temenos Financial Crime Mitigation, we can identify potential fraudsters and immediately prevent them from making transactions. And because Temenos digital banking is built with open banking in mind, we can easily integrate third-party identity solutions to support our Know-Your-Customer activities.”
Addis Tadesse, Director for Application Management at Bank of Abyssinia
Deepening partnerships
To achieve a rapid implementation, Bank of Abyssinia enlisted the support of Temenos business partner Xpert Digital to deploy Temenos digital banking, including the setup of an API integration with Idemia—the bank’s identity and security solution. Supported by Temenos and Xpert Digital, Temenos digital banking went live in just four months.
“Xpert Digital played a lead role in helping us design a digital banking ecosystem that is secure, reliable and, crucially, easy to use,” comments Addis Tadesse. “The Xpert Digital team went the extra mile by helping us to redesign key workflows for a completely digital environment incorporating best practices. For instance, they helped us to leverage integrations with Idemia to build efficient, highly secure and automated verification processes—allowing us to onboard customers rapidly and with confidence.”
Welcoming new digital customers
By building and launching end-to-end digital banking services with Temenos core and digital banking platforms, Bank of Abyssinia has significantly increased its customer base.
“Temenos gives us the tools we need to offer reliable, convenient and always-on digital banking services,” explains Addis Tadesse. “Today, through our Apollo service, customers can sign up for an account from their mobiles by submitting a video of themselves and a copy of their national identity card. With Temenos Financial Crime Mitigation and Idemia, we can run verification processes quickly and get new customers up and running with their new bank account within one day.”
“We’re impressed with the growth we have seen since we implemented Temenos digital banking. We are seeing up to 1,000 new accounts opened every day, and the majority of these are via our digital banking channel—and we expect this number to increase in the months ahead.”
Addis Tadesse, Director for Application Management at Bank of Abyssinia
Empowering more people to invest in their future
As well as offering digital account management services, Bank of Abyssinia enables customers to apply for loans via its mobile banking app—helping more people to access credit, as Addis Tadesse adds: “With Temenos digital banking, we can approve the loan and give our customer to their funds within a few seconds, as long as they meet our lending criteria, where previously this would take months.”
He concludes: “With Temenos, we’ve been able to bring a game-changing solution to the Ethiopian banking sector and empower our customers to bank with us confidently at any time and from any location. We look forward to strengthening our partnership with Temenos in the years ahead as we continue to develop our digital banking offerings and help more customers manage their money effectively.”
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Xpert Digital (XD) is a Certified Temenos Services Partner specializing in delivering exceptional digital experiences by creatively nurturing innovation with technology.
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
At a Glance
• 3 months to migrate major acquisitions to Temenos core banking
• 45 days to launch branch operations in Riyadh, Saudi Arabia from scratch
• 50% efficiencygains in the back-office support highly cost-effective growth
• 49% rise in profits in 2022, a new record for Capital Bank
• 12 months for the subsidiary National Bank of Iraq to go live with Temenos core banking and payments hub
• Processed 188,000 payments in the first month after launch, with 99% STP rate
Established in 1995, the Capital Bank of Jordan (Capital Bank) specializes in commercial and investment banking services for retail and corporate clients. Capital Bank has developed into one of the top financial institutions in Jordan, and has built a strong regional presence through expansion into markets including Iraq and Saudi Arabia.
A spokesperson at the bank, says: “The last three years have been remarkable for our business. We’ve grown in Jordan to become the 3rd largest bank, rising from the 15th position in 2020, We also currently rank among the 50 largest banks in the Middle East.”
How has Capital Bank made such an impressive rise? With a strategy aimed at driving rapid expansion across local and regional markets, fueled and sustained by the bank’s longstanding partnership with Temenos.
Bringing on big acquisitions
Capital Bank has counted on Temenos core banking technology for more than a decade. As the bank ramped up its growth plans, it knew that its core banking model also needed to evolve.
A spokesperson at the bank explains: “In 2020, we began negotiations to acquire Bank Audi’s operations in Jordan and Iraq. They were a bank of similar size to us, so it was a serious undertaking, effectively doubling our operations. We wanted to bring them onto our Temenos core banking system, and we decided to upgrade to the latest release of Temenos in preparation for the integration.”
The upgrade primed Capital Bank to take advantage of a more modern system architecture and all-new functionality. It paved the way for a swift, smooth integration of the Bank Audi business; in all, it took between three to four months to complete the core banking migration.
Capital Bank’s expansion strategy took another leap forward in late 2022, with the acquisition completion of Société Générale Bank Jordan. Once more, Capital Bank was able to migrate the new business’ core banking operations to Temenos in a span of just three months. This allowed the bank to minimize disruption to both employees and customers, while unlocking the benefits of a larger operational footprint sooner.
We are very proud of what we have achieved with the acquisition of these two banks. It’s no small thing to integrate an entire business into your own in just a few months, but we were able to do it thanks to Temenos and the commitment of our project team. Having a strong core banking system, and people who are willing to go the extra mile, were instrumental to our success.”
Spokesperson at the bank
Deepening and expanding the partnership
With these latest acquisitions under its belt, Capital Bank turned its attention to a more established part of its business: the National Bank of Iraq. Acquired in 2005, the National Bank of Iraq deal has allowed Capital Bank to make inroads into an important regional market.
Until 2022, the bank had been running on a legacy core banking system. In that year, Capital Bank decided to also migrate the bank’s end-to-end operations to the Temenos core banking platform. At the same time, it also deployed the Temenos Payments Hub (TPH) at National Bank of Iraq, the first bank in its suite of companies to adopt the solution.
The relative size of the National Bank of Iraq (about twice as big as Capital Bank), and deploying TPH, made the project more complex than previous migrations. Yet it was completed within one year, noting that the project also involved bringing more than 25 third-party vendor integrations, deployment of four other brand-new systems, configuration of new automations, including with the central bank of Iraq, and translation of the system into Arabic. With all the testing completed, the actual migration was delivered in December 2023, taking 96hrs, with all the planned capabilities, dashboards, and metrics available from day one of go-live.
The work was led by one in-house project manager, with Temenos and ITSS Egypt, a Temenos partner, providing support.
This was a highly complex exercise, with many moving parts. Through countless hours of hard work, collaboration, and tireless efforts, we took just 12 months to transition the National Bank of Iraq to a cutting-edge core banking system and a new payments hub, resulting in smooth operations from day one.”
Spokesperson at the bank
The bank didn’t have to wait long to see the impact. In the first month after go-live, it processed 188,923 incoming and outgoing domestic and international payments, with a 99% STP rate. The project was also named ‘Best Core Banking Implementation: Best Project Implementation’ by IBSi as part of their 2023 Innovation Awards.
The partnership with Temenos has supported Capital Bank establish additional presence in Saudi Arabia. Two years ago, National Bank of Iraq received a banking license to launch a new branch in Riyadh, the country’s capital city. To get operations at the site up and running and start accepting customer transactions, the bank implemented a new instance of Temenos core banking, going live in just 45 days.
Recipe for success
A spokesperson at the bank is in no doubt about the game-changing nature of its expansion of Temenos to the National Bank of Iraq.
This new system will not only enhance operational efficiency but also support providing our customers with a superior digital banking experience. The achievement marks a significant milestone in our digital journey and positions us as a leading player in the banking industry.”
Spokesperson at the bank
Reflecting on the project, Izzidin Abusalameh points to several crucial factors. On the technical side, the availability of pre-configured out-of-the-box capabilities within both Temenos core banking and TPH meant the team could avoid building complex customizations. He also points to the value of having a meticulous project plan from the outset, detailing thousands of tasks, that acted as a reference throughout the project and ensured clarity and accountability at all times.
Culture was also an ingredient of success, says a spokesperson at the bank, “We had the right people, with relevant skills, experience and spirit, and enabled by our board with authority to make quick decisions.”
Supporting stellar operations
With Temenos core banking now deployed throughout its businesses, Capital Bank has a trusted and powerful platform for supporting its full range of banking products and services across retail, corporate, asset management, and more. When the bank wishes to enhance existing services or introduce all-new products, it uses Temenos to simplify and accelerate the process.
“Temenos core banking makes life easy for us,” confirms a spokesperson at the bank. “It’s essential for us, providing all the capabilities we need to support our banking operations. When we are building a new product or implementing a new bank business model, we put as much on the core as possible, because we know that Temenos is capable of supporting it.” In Temenos, Capital Bank has found a partner it can count on to keep expanding and improving this core banking universe.
Our partnership with Temenos is immensely valuable to us. Every year, Temenos releases new features and enhancements. They keep up with the latest technology developments and constantly bring something new to their customers.”
Spokesperson at the bank
Free to grow
Enabled by Temenos, Capital Bank has been able to grow without limits, adding new products, and winning more customers all while controlling cost and complexity. As operations have expanded, the bank has simultaneously lifted back-office efficiency by at least 50 percent.
The efficiency gains translate into a better experience for Capital Bank’s rapidly growing customer base. They can count on transactions to be processed quickly and accurately, and for service requests to be handled promptly. It allowed the bank to maintain high customer retention levels—crucial to the long-term success of its acquisitions—and to cultivate a reputation for service excellence that’s helping it win even more new business.
With Temenos core banking in place, along with the improvements we continue to make to processes and workflows, we have been able to bring much more efficiency to our back-office operations as we have grown. Compared to three years ago, our operational efficiency is at least 50 percent higher.”
Spokesperson at the bank
Fit for the future
Capital Bank’s hard work over the past three years has led to impressive financial results, including record profits with a 17% increase over the previous year. The bank considers Temenos to be an important contributor to this success, and an integral part of its plans for the future. No surprise then that it plans to upgrade all its banks to the latest release 23 of the Temenos core banking throughout 2024 and extend TPH to Capital Bank of Jordan as well.
A spokesperson at the bank continues: “We have big plans for the coming years and wherever that journey takes us, we know that Temenos will be accompanying us. Through all our growth and change, Temenos core banking has been the one constant.”
We partnered successfully with
ITSS provides high-quality services for banks with Temenos Transact in parts of Africa, Middle East, Asia and Latin America.
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
At a Glance
• Strengthens status as a top-five bank in Vietnam and one the most innovative players
• Enablesfrictionless, personalizeduser experiences across all channels
• Faster time to market for digital banking services with Temenos digital banking platform
Sacombank is one of Vietnam’s largest banks, with more than 15 million retail and business banking clients—half of whom are digital customers. The bank also operates 566 branches across Vietnam, as well as subsidiaries in Cambodia and Laos.
In Vietnam, more than half of the population is under 35 years old. Digital services are therefore a strategic priority for Sacombank, as it aims to capture a greater share of the lucrative millennial and Gen Z market segment. The country is also a hotspot for digital innovation with a thriving fintech and e-commerce industry, and boasts one of the fastest growing digital economies in Southeast Asia.
Thach Nguyen Ngoc, Director of Application Operations Center, Sacombank, explains: “Vietnam is leading the way in digital banking in Southeast Asia. We have a young population of digitally savvy consumers who expect to be able to do everything on the go from their preferred device. To stay competitive and attract more customers, we must deliver a truly frictionless omnichannel experience.”
Elevating the customer experience
Already recognized as a leader in digital banking in Vietnam by prestigious publications such as the International Business Magazine, Sacombank now aimed to take its services to the next level. “Innovation is at the heart of everything we do,” confirms Thach Nguyen Ngoc. “We’re always looking to implement new ideas, new products, and new processes to improve the customer experience.”
After a thorough evaluation of top-ranked solutions, Sacombank selected Temenos digital banking to unify the user experience across all of its digital delivery channels, including its eBanking web portal, mBanking, mSign, and Sacombank Pay mobile apps. Temenos digital banking platform enables a comprehensive 360-degree customer view, helping Sacombank to acquire, service, retain, and cross-sell to customers on multiple channels and devices.
“What initially attracted us to Temenos digital banking solution was the flexibility and adaptability of the platform. The system gives us pre-composable services—built on microservices and accessible via APIs—as well as localized capabilities incorporating best practices, which are exactly what we need to build and launch stronger digital experiences for the Vietnamese market.”
Thach Nguyen Ngoc, Director of Application Operations Center, Sacombank
Trusting in Temenos
Sacombank worked closely with Temenos to deploy Temenos digital banking. The platform’s open architecture supports integration with Sacombank’s existing systems, including its Temenos core banking system, and external third-party applications. By running Temenos end-to-end platform, Sacombank benefits from complete front-to-back banking capabilities.
Thach Nguyen Ngoc recalls: “Temenos helped us to get everything up and running very quickly; the experience of their implementation team really shone through. We have used Temenos core banking since 2004, and strongly believe that Temenos has the best reputation, capability, and technology on the market.”
Bringing better services to market faster
With Temenos digital platform, Sacombank can create frictionless, personalized customer experiences across all delivery channels—from web to mobile to branch—much more easily than before. The platform’s extensive repository of ready-to-go features means that Sacombank’s developers have everything they need to build new digital banking services at their fingertips.
Crucially, Temenos digital platform is helping Sacombank to ensure that the user experience is always easy, secure, and consistent—no matter how customers engage with its services. “With Temenos digital banking, we are better positioned to deliver the seamless omnichannel experience that younger generations expect,” says Thach Nguyen Ngoc.
“Temenos digital platform has significantly reduced the time and effort required to build and launch new digital banking products. This enables us to go market faster and roll out new features regularly, so we can respond rapidly to emerging customer needs and stay competitive.”
Thach Nguyen Ngoc, Director of Application Operations Center, Sacombank
Continuing to innovate
Looking ahead, Sacombank plans to introduce fully digital customer onboarding and origination, eliminating the need for customers to visit a branch when they sign up for the bank’s services. Sacombank also plans to further enhance the experience for existing customers through its digital channels. “We’re constantly looking for ways to improve and innovate, and make life simpler for our customers,” says Thach Nguyen Ngoc.
In addition, using Temenos digital platform will help Sacombank connect with e-commerce providers, social networks, and other online services to enhance its value proposition to customers—which will be vital as Vietnam continues to digitize its economy and moves towards a cashless payment ecosystem.
“It’s an exciting time for digital innovation in banking in Vietnam, and we are glad to have Temenos on side as a key strategic partner. Working together, we will streamline our digital experiences and offer something new to the market, helping us continue to win new business among the crucial under-35s market segment, and strengthening our status as a leading innovator and top-five bank in Vietnam.”
Thach Nguyen Ngoc, Director of Application Operations Center, Sacombank
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
At a Glance
• 2 mins 40 seconds to provide loan decisions, significantly faster than domestic competitors
• 4.8 out of 5 Trustpilot TrustScore, far exceeding the banking category average of 3.4 out of 5
• 2100% growth in deposit portfolio and 66% growth in lending portfolio since ADI issued in December 2022
With offices in Sydney and Brisbane, Alex Bank is a 100 percent digital challenger bank, committed to providing customers in Australia with faster, fairer, and more flexible financial solutions. Alex Bank serves individuals and small businesses across the country with a range of retail and commercial banking products.
Simon Beitz, CEO of Alex Bank, takes up the story: “Our domestic market is dominated by four banks with a combined market share of around 85 percent. We surveyed 2,500 prospective customers about their frustrations with their current banks. We found that one of the biggest pain points was slow service. With legacy banks, applications for savings accounts, loans, and mortgages can often take several weeks to complete. We saw an opportunity to shape higher-quality retail and commercial banking experiences by removing the friction from these journeys.”
Targeting the optimal core banking platform
As a newly authorized deposit-taking institution (ADI) licensed by the Australian Prudential Regulatory Authority (APRA), Alex Bank looked for the optimal technology stack to help it deliver outstanding customer experiences. Compliant, always-on digital services were a must, and the bank targeted a core banking platform that could support its long-term goals.
“We want to be the most efficient bank in Australia, with a cost-to-income ratio of 30 percent or lower. To deliver seamless digital services to thousands of customers with a lean team of just 38 people, we knew we had to develop highly automated systems and processes. Choosing the optimal core banking platform would be a key enabler of this strategy, and we set out to find the right partner.”
Simon Beitz, CEO of Alex Bank
Building a platform for service innovation
To lay the foundation for next-generation services, Alex Bank selected Temenos core banking on Temenos SaaS, deployed on a resilient and highly available platform.
“We evaluated potential vendors against several criteria, including industry experience, access to support, and a proven track record of successful deployments,” recalls Beitz. “Temenos met all our operational and technical requirements for a new core banking platform. As well as having global reach, Temenos has a very strong footprint in Australia, which gave us the confidence we could get effective support whenever we needed it. Temenos core banking can be customized flexibly and deployed rapidly, which allows us to address stringent regulatory requirements without sacrificing our challenger bank agility.”
Accelerating deployment, reducing costs
By deploying Temenos core banking on SaaS, Alex Bank accelerated its core banking implementation while avoiding the significant capital and operational costs associated with deploying an on-premises infrastructure.
Beitz elaborates: “Temenos SaaS offers us many advantages over an on-premises approach. With managed services from Temenos, we are free from the burden of maintaining our infrastructure, which empowers staff to add value in other areas of the business. We can also scale Temenos core banking quickly and easily as we grow—a big advantage for a challenger bank. Crucially, Temenos SaaS offers us mature security and high availability capabilities, giving us the peace of mind that our organization and our customers are always protected.”
Unlocking vital insights
Working with an expert team from Temenos, Alex Bank leveraged the solution’s built-in tools to tailor its banking products to meet the needs and expectations of its target market, and to design Temenos Analytics reports to deliver business insights to management and leadership teams.
“We can modify business rules in Temenos Financial Crime Mitigation with minimal support from Temenos, saving time and effort and helping us to keep pace with the needs of the business.”
Rocketing ahead in the Australian market
Through its collaboration with Temenos, Alex Bank is rapidly establishing itself as one of Australia’s fastest-growing financial organizations.
“Our goal isn’t simply to offer slightly faster services than our banking competitors. We want to deliver experiences that match the speed and convenience of our customers’ favorite brands — for example, e-commerce retailers. To realize our vision, we’ve designed every stage of every journey with the customer experience at the center.”
Simon Beitz, CEO of Alex Bank
“Our goal isn’t simply to offer slightly faster services than our banking competitors,” explains Beitz. “We want to deliver experiences that match the speed and convenience of our customers’ favorite brands — for example, e-commerce retailers. To realize our vision, we’ve designed every stage of every journey with the customer experience at the center.”
Providing decisions in seconds
By combining the capabilities of Temenos core banking with its own AI technologies, the bank is delivering lending decisions and onboarding customers within minutes, speeding ahead of its competitors.
“We have created a smart, real-time credit decisioning system called Alex Intelligence™, which uses data analytics to accurately assess an applicant’s credit risk,” explains Beitz. “For unsecured loans, we’ve compressed the entire customer application process down to two minutes and 40 seconds. When a customer applies via their digital device, we can give them a decision significantly faster than our competitors and deposit the money to their account within as little as three hours. We’ve since expanded to secured personal loans, and next we plan to build a similar offering for small business owners.”
Nurturing customer loyalty
Alex Bank’s relentless focus on the customer experience is already paying dividends. The organization is racing ahead of its competitors with a Trustpilot TrustScore of 4.8/5, far exceeding the banking category average of 3.4/5.
“We are now measuring a satisfaction score of 81.7/100 on Trustpilot, which shows that our approach is really resonating with our customers,” says Beitz. “Our growth trajectory is so steep that we’re often breaking our own daily records for new lending and deposits. Since ADI issued in 21DEC22, deposits have increased by 2100 percent and lending has grown by 66 percent. These results contributed to Alex Bank receiving Fast Starter awards from both Deloitte and the Australian Financial Review.”
Planning for the future
Looking ahead, Alex Bank plans to work with Temenos to bring its mortgage offering for small business owners to market, and the bank expects to achieve profitable operations within a matter of months.
“We have high expectations of Temenos, and Temenos continues to meet those expectations by helping us get innovative products to market rapidly. Having Temenos as our core banking partner is integral to delivering excellent customer experiences and staying ahead in a highly competitive industry. We’re excited to build on what we’ve achieved with Temenos core banking on SaaS.”
Minimizing risk and increasing revenues by using explainable AI to analyze loan applications
Kinshasa, Democratic Republic of the Congo
One of the largest financial groups in Latin America with operations in the Dominican Republic and Panama, Qik combines more than five decades of banking experience with the operational agility and cutting-edge digital experiences enabled by the Temenos platform. Part of Grupo Popular, Qik launched Qik Banco Digital Dominicano on Temenos Banking Cloud, becoming the first digital-only bank in the Dominican Republic. The launch of Qik on the Temenos Banking Cloud with consultative support from ITSS will enable the bank to quickly establish a presence in the Dominican Republic, planning to onboard up to thousands of people in the first year. With instant access to packaged banking services via software-as-a-service (SaaS) on Temenos Banking Cloud, Qik can meet the emerging needs of digital customers with the highest technological, security and service standards, built around the way customers live their daily lives.
Qik will be able to measure, reduce and report on their emissions with BI data, so that they can comply with regulations, address the changing needs of their customers and reach their sustainability targets. The bank will also utilized Temenos core banking and payments services on a pay-as-you-go basis, as it launches products from debit accounts to savings to personal loans across the Dominican Republic. The open and flexible platform will empower Qik to quickly design and deliver innovative products and services.
We wanted to create a bank with agility, flexibility and state-of-the-art technology to improve the banking experience and create availability to banking services to a larger portion of Dominicans. Our value proposition is focusing on people´s needs to maximize their time and resources, which is the demand of today’s customers. That’s why we chose Temenos, because its cloud technology has a successful track record across Latin America and we knew that it could help us deliver a digital experience that redefines banking so that our customers can bank smarter, happier and more connected than ever before.”
Arturo Grullón Finet, CEO of Qik
We partnered successfully with
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