TEMENOS and TLC, a small private company, first formed an alliance in October 2004 in response to the industry’s need for a core banking solution with integrated risk management. The alliance enabled banks to integrate TLC’s Basel II product with TEMENOS’ market-leading core banking systems. barracuda provides a predefined, Basel II-specific, data taxonomy and acts as the data ‘concentrator’ for all the data from disparate source systems required to properly calculate Risk Weighted Assets (RWA) under Basel II. The first joint client of the alliance, Universal Bank in Cyprus, successfully implemented the combined solution in 2005.
With immediate effect, TEMENOS will rebrand barracuda as T-Risk and provide it as a stand-alone product that can be easily integrated within TEMENOS T24™ and TEMENOS COREBANKING, the company’s modular and flagship core banking systems. The design and development team from TLC have joined TEMENOS, working out of TEMENOS’ Fenchurch Street offices in London. These include two of TLC’s three founders, David Thomas and Nicholas Morgan.
David Thomas, co-founder and director, TLC Risk Solutions, says: “This is an extremely positive move for our clients. They can now benefit from TEMENOS’ extensive experience of the banking software industry, its superior product portfolio and its commitment to technical development. In addition, they’ll continue to meet their risk management requirements through the barracuda software with no disruption.”
Andreas Andreades, CEO, TEMENOS, says: “With the escalating complexities of trades and the continued challenge to meet compliance and regulatory requirements, risk management is of increasing importance to global financial institutions. Already we have seen our clients benefit from TLC’s products through our existing alliance. This transaction illustrates our strong commitment to invest in our product portfolio in order to meet our clients’ needs. It is a very complimentary acquisition for us, which will broaden our platform offering and strengthen our position in the risk area.”
TEMENOS continues to attract global tier 1 and regional banks as a result of its superior products, TEMENOS T24 and TEMENOS COREBANKING. In 2005, the company achieved US$ 91 million in Initial Licence Fees (ILF), an increase of 47% compared to 2004. New clients have included Compagnie Monégasque de Banque, RBTT Financial Group, Bank of East Asia and HSBC.