The race to create a challenger bank just got more competitive with a ready-made solution from core provider Temenos that can help brands stand up a digital bank in as few as 90 days.
The Switzerland-based banking technology provider launched its digital banking software-as-a-service solution in the U.S. this week. The toolkit will allow clients to launch digital-only banks in 90 days, allowing them to aggressively meet consumer demand and stay competitive in the marketplace, Ranganathan Sathianarayanan, chief product officer for North America at Temenos, told Bank Innovation.
“We’re delivering this as a SaaS [software as a service] solution on the cloud, with the ability to scale up and down, and add new products with a faster time to market,” he said. “It includes Infinity, which is a front-office solution; Transact, which is core banking, such as deposits; and Temenos Payments.”
The entire solution includes anti-money laundering and fraud mitigation, along with analytics, noted Sathianarayanan. The product suite has already been deployed outside North America; one prominent client is Australia’s business neobank, Judo, which recently reported AU$1 billion (around $684 million) in deposits after just nine months of operations.
Temenos’ solution comes to market alongside a growing number of upstart core providers seeking to help institutions build digital-only banking solutions, including Nymbus, Mambu and Neocova. Temenos is not the only legacy provider helping clients set up digital-only banks quickly, as other large banking software vendors build solutions to cater to an expanding market. Just last year, industry giant FIS launched a toolkit to help clients stand up digital-only banks in 90 days.
“There’s a great demand in the marketplace to have a core banking platform that’s nimble and built around API technologies,” said David Albertazzi, research director at Aite Group. He added that banks are seeking API-based models that offer easy integration, deployment agility and cost reductions resulting from cloud-based infrastructures. The deployment time of 90 days is also attractive to institutions accustomed to waiting months, or even years, for core software implementation efforts, he added.
While new core providers offer cloud and API-based solutions with attractive price points, many institutions still look to large, established players like Temenos for their experience and reputations, Albertazzi noted.
“[Institutions] want to leverage the scale of core providers, their implementation experience and financial stability,” he said. “Oftentimes, emerging fintech vendors do not offer all of those.”
Temenos’ solution lets banks configure and launch new products quickly according to their needs and plans, according to the company. It includes support for conversational interfaces, AI-based tools, augmented reality and wearables. Also included is support for regulatory compliance, and the company’s international footprint means its systems are resourced to meet data compliance regulatory requirements, like the GDPR and CCPA.
A key differentiator for Temenos’ SaaS solution, according to Sathianarayanan, is how its bundle of offerings is packaged in a comprehensive product suite that can be brought to market quickly.
“What we’re doing with the SaaS offering is we’ve preconfigured and prepackaged all of this together, so you don’t need to start from scratch,” he said. “This package includes not only our own products, but also integrations with marketplace partners. We’re bringing the entire end to end functionality to the market with faster implementation.”
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