Banking software company, Temenos, has announced it is expanding its strategic relationship with Microsoft to meet the growing demand from banks for SaaS and banking services delivered by the Temenos’ Banking Cloud.
The partnership between the tech companies is aimed at developing financial services offerings in the cloud to drive scalability, operational efficiency, and innovation. The Temenos Banking Cloud is hosted on Microsoft Azure.
Temenos is seeing tremendous growth in SaaS and its open banking platform, as banks increasingly turn to composable banking solutions – built on microservices and accessible via APIs – to modernize and address the challenges of their current IT landscapes.
Furthermore, Temenos will collaborate with Microsoft on Green Cloud initiatives to help banks see an immediate and significant reduction in their carbon footprint and support them in achieving their ESG goals. Research commissioned by Microsoft estimates businesses using their infrastructure are up to 93% more energy-efficient and can result in up to 98% lower carbon emissions than operating their own datacenter. These savings are attributable to four key features of the Microsoft Cloud: IT operational efficiency, IT equipment efficiency, datacenter infrastructure efficiency, and renewable electricity.
Max Chuard, CEO, Temenos, commented: “This agreement cements Temenos’ and Microsoft’s shared commitment to providing banks with an optimal path to cloud adoption. The cloud is essential for banks to reduce their time to market and operational complexity, as well as elastically scale and deliver outstanding digital customer experiences. It also gives business agility in the new world of open banking and banking as a service. We see an acceleration in our SaaS business, and this landmark agreement will assist our clients in embracing the cloud for mission-critical banking services and taking advantage of emerging new business models with more certainty, predictability and at a lower cost.”
Bill Borden, Corporate VP of Worldwide Financial Services, Microsoft, said: “We are thrilled to continue our collaboration with Temenos to build out its Temenos Banking Cloud on Microsoft Azure to address the industry’s rigorous security, regulatory and privacy demands. We also look forward to putting our combined strengths to work to expand the possibilities of the cloud for banks and financial institutions worldwide, helping them create differentiated customer experiences, accelerate time to value, and drive innovation for responsible growth.”
According to a recent Economist Intelligence Unit report, the take-up of SaaS and cloud infrastructure has accelerated since the start of the pandemic, as banks seize an opportunity to cut costs and ramp up their digital transformation projects.
Temenos powers the banking services for over 3,000 financial institutions serving the banking needs of more than 1.2 billion people worldwide. Temenos delivers its software across all major public cloud providers. With The Temenos Banking Cloud, banks can self-provision complete front-to-back banking services with localized functionality from over 150 countries. It gives banks the freedom to innovate faster, move from a CapEx to an OpEx model and benefit from a lower total cost of ownership.
