Max Chuard, CEO of Temenos, inaugurated the Temenos Community Forum 2022 (TCF) by emphasizing key themes for discussion, including embedded finance, disruptive technologies, disintermediation, innovative business models, composable services, and sustainability.
Chuard observed a significant shift in customer expectations, noting that after two decades at Temenos, the pace of change has accelerated dramatically. “Customers have become accustomed to seamless, convenient, and personalized experiences, similar to those offered by global platforms like Netflix and Amazon. They now expect the same from their banking services,” he stated.
He highlighted that transformative technologies such as cloud computing, APIs, and AI facilitate not only an improved customer experience but also provide actionable insights that enhance daily life. “These disruptive technologies enable rapid scalability and foster innovation while being cost-effective—a crucial factor, especially considering that 76% of banks struggle to meet their cost of capital,” Chuard added.
Chuard described Temenos’s banking platform as modular, likening it to “Lego blocks” that allow users to create tailored services within a flexible environment. “This platform is designed for all participants—be they established banks, challengers, or fintechs—across various market segments, including retail, SMEs, corporate, or wealth management. Hence, it’s truly Everyone’s Banking Platform.”
Highlighting client success stories, he cited Mirabaud, a 200-year-old Swiss wealth management firm, which thrives on a “passionate human approach,” recognizing the evolving landscape of wealth management that demands both a personal touch and technological integration. “A historic institution is now leveraging cutting-edge SaaS technology,” he noted.
Chuard also referenced Green Dot, which aims to become the largest bank few know about. He articulated how Green Dot utilizes Temenos services to develop and embed new products quickly within various ecosystems. “As they expand, our platform adapts and scales with them.”
### The Evolution of Composable Banking
Prema Varadhan, Chief Product and Technology Officer at Temenos, proposed that emerging players require robust banking and finance platforms to serve their diverse customer needs. “To prepare for these evolving business models and ecosystem adjustments, banks must embrace composable banking,” she asserted.
Varadhan characterized the growing ecosystem as a “plug-and-play” environment, highlighting models like Banking as a Service (BaaS). She stressed the importance of extensibility, emphasizing the need for granular extensions—ranging from APIs to data models and rule configurations.
She further pointed out the necessity of hyper-personalization in response to customer expectations. “Customers desire tailored experiences, and this level of personalization should not diminish when it comes to financing options,” Varadhan explained. Additionally, she noted the significance of multi-entity processing to accommodate specialized products across different regions.
Lastly, Varadhan addressed the critical requirement for efficient data migration as banks adapt their business models and modernize platforms. This capability allows for quicker and more cost-effective transitions.
Following her insights, Ramki Ramakrishnan, Director of Global Business Solutions at Temenos, and Tony Coleman, Chief Technology Officer at Temenos, showcased how to leverage the Temenos platform to create customizable environments for product development.
### Strengthening Alliances: Temenos and AWS
Ross Mallace, Executive Vice President and Global Head of SaaS and Partner Ecosystem at Temenos, along with John Kain, Head of Banking and Capital Markets at AWS, discussed the ongoing partnership between the two companies. They emphasized the collaborative efforts to harness cloud technologies for enhanced cost efficiency, security, and regulatory compliance.
Kain remarked on the shift in urgency following the pandemic: “Prior to the pandemic, transformation efforts were considered essential but not urgent. Now, there’s an undeniable need to evolve the customer experience in banking.”
Both leaders highlighted hyper-personalization as a crucial theme of the conference. Mallace pointed out how cloud technology has dismantled barriers, enabling innovative fintech solutions to enter the market.
The discussion also touched on the importance of Environmental, Social, and Governance (ESG) criteria, with Kain noting that transitioning to modern platforms can significantly enhance operational efficiency while contributing to environmental sustainability.
### Creating Value through Banking Platforms
Temenos’s President and Chief Revenue Officer Erich Gerber, who joined the company in March 2022, stressed the critical role customer value plays in shaping corporate strategy. He illustrated trends with historical context, noting that while Microsoft Money served 100,000 households in 1994, an estimated 2.5 billion people will be using online banking by 2024.
In discussions about banking as a platform, Sagheer Mufti, COO of HBL, emphasized that business strategy must dictate technological approaches. “To facilitate 35% of the nation’s payments and collections, having the right platform and capabilities is crucial,” Mufti stated.
Marcel Ooijevaar, Head of Strategic Change Programs at NN Bank, discussed their strategy of integrating digital banking with insurance services, highlighting the need to offer round-the-clock services to customers. He noted, “It’s less about banking and insurance and more about delivering comprehensive customer services.”
### Practical Steps Towards Sustainability
The final panel focused on the symbiosis between sustainability and innovation, led by Kalliopi Chioti, Chief ESG Officer at Temenos. The session underscored that ESG considerations are gaining prominence among banks. “Digital transformation has primarily been driven by financial pressures, regulatory requirements, and customer expectations. Cloud technology has been instrumental in addressing these challenges while also enabling banks to confront climate change initiatives,” she reported.
Ivan Mazzoleni, CEO of Flowe, remarked that true sustainability requires profitability and minimizing total ownership costs. Andrew Moor, CEO of Equitable Bank, added, “Sustainability must drive innovation; we aim to achieve Scope 3 carbon emissions disclosures from all suppliers by year-end.”
Patrice Amann, Regional Business Lead for EMEA Financial Services at Microsoft, concluded by urging a focus on understanding and managing carbon footprints responsibly. “Accountability will be key as we navigate these challenges.”