Temenos and AWS partner for digital banking services

Collaboration comes amid rising demand for cloud banking services

by | May 19, 2022 | bobsguide

Swiss cloud banking software provider Temenos has signed a multi-year partnership agreement with cloud platform provider Amazon Web Services (AWS) to operate digital onboarding and origination services on AWS.

The partnership extends an existing service agreement from 2019, which saw Temenos integrate its open platform on AWS.

With the latest collaboration, Temenos aims to offer the full suite of Temenos banking solutions on AWS as a service.

“We are seeing an acceleration in our subscription-based business, and with this multi-year agreement we are offering our clients more choice in embracing the cloud for digital banking services and new business models such as banking-as-service with more certainty, predictability and at a lower cost,” said Max Chuard, CEO of Temenos.

Temenos digital solutions also integrate with Salesforce CRM and Amazon Connect, providing banks with artificial intelligence and machine learning capabilities to deliver personalised and interactive customer services.

The Swiss group will also leverage AWS Availability Zones to offer high availability inside a single region, avoiding data sovereignty concerns and without needing expensive redundant infrastructure.

“Combining the reliability, high performance, and security of AWS with Temenos digital banking solutions, we can offer banks the business agility they need to transition to the cloud with confidence and innovate faster than ever before,” said John Kain, head of financial services market development at AWS.

Temenos enjoys growth period

Temenos’s newest partnership comes amid the growing demand for the firm’s services.

By its own admission, more than 1,000 financial services institutions use its cloud-native digital platform, while over 3,000 banks around the globe use Temenos to process daily transactions and client interactions. The company also won 17 new client wins in the first quarter of 2022.

Only last month, two banks ABN AMRO and Mirabaud selected Temenos to access the fintech group’s continuous deployment services and SaaS end-to-end wealth management platform, respectively.

Prior to that, US challenger bank Battle Financial and Rakuten Europe bank had also selected Temenos for their cloud platform.

Financial firms look to the cloud

Temenos’s growth underscores the increasing interest in cloud adoption among financial firms.

In the UK alone, a survey by PwC in 2021 found that 42percent of financial services firms had started implementing cloud adoption, with 27percent having already implemented it at scale. 21percent of the respondents also planned to adopt cloud in the future.

Likewise, the Google cloud survey also found that 83% of respondents in North America, Europe and the Asia Pacific were already using some form of public cloud.

Besides cost-efficiency and streamlined operations, consumer preference for faster and better integrated banking services has also steered users toward digitally-native firms.

According to Mckinsey’s 2021 global retail baking consumer survey, 30percent of retail clients in Western Europe and 40percet in the US are banking with fintech or a big technology company.

In order to tap into the technology-oriented customer base, financial firms have been investing in cloud technology and platform providers.

In May, a group of banks rallied behind Singaporean state investment manager Temasek to participate in a $160 million Series D funding for UK cloud banking technology provider Thought Machine.

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