Temenos Lands PayPal Contract for Core Banking

How’s this for a momentum-builder for a firm with its sights set on U.S. expansion?

Swiss banking software provider Temenos announced today that PayPal will use its Temenos T24 Core Banking platform for several of the payment services provider’s businesses around the world. The platform will run on Temenos Cloud and support various PayPal offerings in the U.S., U.K., Germany, and Australia.

“This signing highlights Temenos’s momentum in the US market with both banks and disruptors,” Temenos said in a brief release.

The company also announced the closing of its acquisition of Avoka, a Colorado-headquartered firm specializing in digital customer acquisition and onboarding. The $245 million acquisition was originally announced last week.

Emily Steele, President of North America for Temenos, told Bank Innovation earlier this week that the company is “absolutely” interested in strengthening its foothold in the U.S.

She said the company sees its opportunity for expansion here through partnerships with financial institutions of all sizes to equip them with the technology that’s going to “future-proof” their businesses for years to come.

But what’s guiding that vision?

“Our Temenos philosophy is about seeing things differently and we look for customers who are really looking for something different in a technology partner, allowing a financial institution to truly differentiate in a vastly competitive market space today,” Steele said.

She said Temenos wants to provide financial institutions the ability to create and deliver “a winning omnichannel digital experience” that builds up brand loyalty.

Asked to come up with a good definition for “frictionless, seamless, omnichannel digital banking,” Steele admitted it’s a bit of an overused term in the business.

“It’s really the ability to handle a client’s needs – and I’ll use the word ‘seamlessly,’ which is probably also overused – by eliminating unneeded steps, unneeded processes, and unneeded data entry,” she said. “All of this, so that the experience of banking becomes more of a ‘bank of life,’ where we’re making it personal and making it fit into the day-to-day life of a consumer.”

Steele said it’s important to remove steps and simplify processes but the idea of going full-frictionless is “a little dangerous” in banking. She said she prefers a term like “friction-right,” which includes consideration for compliance regulations, security of data and other requirements.

“Consumers want banking to be like everything else is in their life today,” Steele said. “The movement and pace of change that we’re experiencing, and the competition, are making it critical to create banking more as the bank of life. We really do believe that it’s about now, that it has to happen now, but it needs to be friction-right, not frictionless, in banking.”

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