Temenos (SIX: TEMN), the software specialist for banking and finance, today announces it has been once again recognised as the world's best-selling vendor of core banking software. The annual league, compiled by independent news and analysis firm IBS Intelligence (IBS), records software system sales to new name customers across the banking and treasury and capital markets. This is the 16th time in the last 17 years that Temenos has topped the league table.
This year's league table results reflect continued recovery in the core banking software market. In 2015, the volume of deals grew by 13%, the second year of growth following steep falls during and after the financial crisis. In total, 37 vendors won business in the core banking market in 2015 down from 41 in 2014, and 5 vendors took 51% of the deals, demonstrating further consolidation at the top. Temenos recorded 34 deals, 21% more than the nearest vendor, with an estimated 17% of the overall core banking market by volume.
Temenos' strong financial performance in 2015 was buoyed by the growth in the core banking market, but was also a function of taking market share. Temenos grew licence revenue by 35% in 2015 to reach USD199.4m, compared to the 13% growth in deal volume showing continued market share gains. In particular, Temenos extended its lead over competitors in both the retail and private banking segments, winning several landmark deals at institutions such as Nordea, the largest ever core banking replacement project in Europe, Julius Baer, ABN Amro and Bank Leumi.
Commenting on the results, CEO David Arnott said:
"We are delighted to see Temenos once again ranked number one in the IBS league table. Core banking replacement remains absolutely fundamental to a successful digitization strategy. Without a single data model, real-time transactional data and a complete view of customers, banks won't have the right foundations to deliver the rich and personalised experience that consumers want. So, it is pleasing to see the market continue to recover after the financial crisis. Our business model, which is based on packaged, upgradeable software, that is scalable, integrated and with an open architecture ensures we keep delivering the best technology as well as constantly expanding our core banking product coverage. It is the reason we are able to continue delivering unparalleled customer success."