Temenos first to market in the cloud with combined Payment Hub and Core Banking platform, offering banks flexibility across payments spectrum
Temenos (SIX: TEMN), the software specialist for banking and finance, has extended its leadership in cloud-based banking and finance software with the launch of its Payment Hub in cloud on Microsoft Azure.
Darryl Proctor, Product Director – Payments, Temenos, stated: “We have been pioneering with Microsoft since 2011, which led to Temenos becoming the first vendor to put a core banking system in the public cloud. We are now extending our capabilities by becoming the first to launch a Payment Hub, that is fully embedded into a core banking platform, in the cloud. With the addition of payments to our cloud offering we have the most complete cloud-based portfolio available in the market. We see a real appetite in the banking space for cloud solutions, with 22% of new business taking cloud services as an alternative to on-premises deals and a doubling of average deal size.”
Our payments cloud service enables banks to transform their payments offerings at a much lower initial investment, in turn providing better value to their customers. Temenos’ Payment Hub operates as a fully embedded component of the Temenos Core Banking platform, and is available both in the cloud and on-premises. The Payment Hub can also run as a standalone payment processing engine offering banks a single solution for processing low value, high value and instant payments. The result is increased efficiency and improved user experience, driven by real-time processing that reaches beyond the payments space for a unified experience from end-to-end.
Kieran Hines, Head of Industries at Ovum, commented: “The combination of competitive pressure and regulatory-driven change in the payments space remains a key driver of increased investment in core payment capabilities for a growing number of financial institutions. Indeed, Ovum forecasts that spending on payment hub solutions will be $1.37 billion in 2017, growing to over $1.9 billion by 2021. As the maturity of vendor and cloud infrastructure offerings increases, this is feeding into a growing interest and comfort around cloud-based solutions. Indeed, Ovum’s latest ICT Enterprise Insights study finds that just over 20% of banks are planning to explore SaaS solutions as part of their payment orchestration and payment hub investment plans for 2018.”
Built from the ground up, this agile, componentized, standalone Payment Hub, paired with the global scale of Azure, enables quick time-to-market and ease of implementation while reducing maintenance effort and the total cost of ownership. The Payment Hub is designed to bring the best experience to both the user and the bank across all channels, with features like intelligent routing and settlement to find the best route for payment, and the ability to process high value, high volume and real-time payments transactions together in one solution.
Janet Lewis, Vice President of Worldwide Financial Services at Microsoft, commented: “Technology is increasingly providing financial institutions a competitive edge, and is enabling firms to deliver essential financial services to people around the world – services that can drive entrepreneurial spirit, build community, and foster creativity and purpose. We have been working with Temenos to revolutionize the banking industry – extending their Payment Hub into Microsoft Azure gives them the most complete cloud-based portfolio. By pairing their payments offering with Microsoft Azure, Temenos will enable banks to tap into this vibrant, evolving market, while also providing banks and their customers with the assurance that comes with the security, privacy and compliance built into Azure.”
Temenos Group AG (SIX: TEMN), headquartered in Geneva, is a market leading software provider, partnering with banks and other financial institutions to transform their businesses and stay ahead of a changing marketplace. Over 2,000 firms across the globe, including 41 of the top 50 banks, rely on Temenos to process the daily transactions of more than 500 million banking customers. Temenos customers are proven to be more profitable than their peers: over a seven-year period, they enjoyed on average a 31% higher return on assets, a 36% higher return on equity and an 8.6 percentage point lower cost/income ratio than banks running legacy applications.