Business Wire

End-To-End Digital Transformation Presents Banks With a Trillion-Dollar Profit Opportunity, Reveals the Newly Launched Temenos Value Benchmark Program

Share

Temenos (SIX: TEMN), the banking software company today announced the first set of results from the Temenos Value Benchmark, a strategic, survey-based program providing in-depth analysis of how software capabilities impact a bank’s profitability. Key findings show that top-performing banks using Temenos software invest in end-to-end digitization, underpinned by state-of-the-art analytics to achieve industry-leading profitability levels.

As a result, these top performing banks using Temenos software have achieved industry-leading cost-income ratios of 25.2% and returns on equity of 25.0%, 2X better than the industry average. These clients also invest over 53% of their IT budget on growth and innovation versus maintenance, which is 2.5X the industry average. These results show the tangible value to be gained if banks are able to digitally transform their businesses and move from legacy-systems to modern, off-the-shelf packaged software running on the latest cloud-native, cloud-agnostic, API-based technology.

Banks are challenged by tough macro-economic conditions, the rise of new competition and evolving customer demands, combined with crippling legacy architectures. However, they have an immense opportunity to harness the power of digitization to transform their business and achieve dramatic profitability improvements. The average return on equity for participating banks in the Temenos Value Benchmark at 15.6% is significantly higher than current industry-average returns on equity of 8% to 10%. This differential translates into up to a massive additional one trillion USD profit potential for the global banking industry were it to digitally transform, assuming a $140 billion increment in operating profit for every 1% increase in return on equity1.

Max Chuard, Chief Executive Officer, Temenos, said: “There is a trillion dollar profit opportunity for banks which move away from legacy systems to modern packaged software running on the latest cloud-native, cloud-agnostic, API-first technology. The case for digital transformation has never been stronger and the urgency for change has never been greater. The results of the Temenos Value Benchmark Program show that Temenos clients are amongst the top performing banks in the industry and by transforming their end-to-end digital banking platform, they have been able to achieve industry-leading profitability levels while innovating faster and delivering exceptional digital experiences for their customers. For most banks, digital transformation is a once in a life project, for us is our full time job. We are proud to take a bank live on our software every day of the week. We help institutions of all types - from large global banks such as Nordea and Standard Chartered to digital-only banks like Varo Money and Volt Bank - to unlock the business value of the digital banking opportunity and drive best-in-class performance and profitability.”

Kanika Hope, Global Strategic Business Advisory Director, Temenos, said: “As the world’s leading provider of packaged banking software, it is our vision and mission to help our clients achieve tangible business value from their IT investment. We therefore launched the Temenos Value Benchmark, a unique program to provide our banking clients, tangible, data-driven insights and recommendations into their business performance, in the spirit of a true strategic partner. Through our benchmark study, we collected thousands of data points around financial and operational metrics as well as qualitative best practices across the entire banking value chain, to understand how specific solution enablers and best practices drive high performance such as better cost-income ratios and improved returns on equity and assets.”

Five Drivers of high-performing banks:

The Temenos Value Benchmark has revealed that top performing banks who have digitally transformed their business and moved away from legacy-systems are able to differentiate across five key areas:

  1. Product innovation and growth: They launch products and services faster, which result in higher customer growth. These banks can focus their IT spend on growth and innovation rather than maintenance.
  2. Customer centricity: They engage digitally with more of their customers, cross-sell more and on-board customers faster. All of these contribute to higher customer satisfaction.
  3. Operational efficiency: They have higher levels of automation driven by straight through processing both, in the front and the back office allowing support of more customers with fewer staff.
  4. Effective risk and compliance: They have more efficient and effective compliance functions, leading to better staff productivity and more efficient operations. They also spend less of their IT budget on regulation.
  5. Advanced analytics: They use analytics widely and effectively with a higher proportion of self-service reports and a greater proportion of business users using analytics. They also have a stronger data foundation in terms of lower data duplication across their systems.

Dan Dickinson, CIO, Equitable (EQ) Bank Canada, said: “A great example of the value I got from the Temenos Value Benchmark and why I would encourage my banking counterparts to participate in this program, is the metric I received on the very first page of the report: IT cost as a revenue percentage. This benchmark metric paid off immediately as it revealed to me the true cost of my IT and how I must continue to optimize and automate as I grow my customer base as Canada’s first digital challenger.”

The Temenos Value Benchmark
The Temenos Value Benchmark is a strategic survey-based program to discuss the business and IT metrics and best practices enabled by a bank’s investment in technology. As part of this exercise, banks receive a customized report free of charge comparing their business performance with Temenos clients including executive-level summary of findings with business and IT insights structured along eight banking business and IT domains, across the banking value chain.

To read the insights of the first wave of results from the Temenos Value Benchmark, please visit here.

– Ends –

About Temenos
Temenos AG (SIX: TEMN), headquartered in Geneva, is the world’s leader in banking software, partnering with banks and other financial institutions to transform their businesses and stay ahead of a changing marketplace. Over 3,000 banks across the globe, including 41 of the top 50 banks, rely on Temenos to process both the daily transactions and client interactions of more than 500 million banking customers. Temenos offers cloud-native, cloud-agnostic front office and core banking, payments, fund management and wealth management software products enabling banks to deliver consistent, frictionless customer journeys and gain operational excellence.

Temenos software is proven to enable its top-performing clients to achieve industry-leading cost-income ratios of 25.2% and returns on equity of 25.0%, 2X better than the industry average. These clients also invest over 53% of their IT budget on growth and innovation versus maintenance, which is 2.5X the industry average, proving the banks’ IT investment is adding tangible value to their business.

For more information please visit www.temenos.com.

1 McKinsey Global Banking Review 2017

Contact information

Media Contacts
Jessica Wolfe & Grace Collins
Temenos Global Public Relations
Tel: +1 610 232 2793 & + 44 20 7423 3969
Email : press@temenos.com

Alistair Kellie & Andrew Adie
Newgate Communications on behalf of Temenos
Tel: +44 20 7680 6550
Email: allnewgatetemenos@newgatecomms.com

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Ingenic Semiconductor Integrates Allegro DVT Encoding IP into Next-Generation Smart-Video System-On-Chip Solutions3.7.2020 13:46:00 EESTPress release

Allegro DVT, the leading provider of video semiconductor IP solutions, today announced that Ingenic Semiconductor, one of the leading system-on-chip companies in China has integrated the AL-E150 high-performance video encoding IP into its latest generation of Smart Video products. The Smart Video product family from Ingenic Semiconductor features highly integrated Video Processor system-on-chip (SoC) solutions targeted at various video applications such as consumer and professional video surveillance and battery-operated cameras. One of Ingenic latest video processors, includes Allegro DVT’s AL-E150 H.264/HEVC/JPEG encoder to handle compression of multiple video channels at resolutions up to 5Mpixels. This chip is now shipping in mass-volume. Brad Liu, VP of Smart Video BU, Ingenic commented, “With the AL-E150, Allegro DVT is able to offer a multi-format and feature-rich encoder IP which perfectly meets our requirements and represents the best trade-off between silicon area, high-video

Imaweb-IDF Group Completes Its Acquisition of Serinfer3.7.2020 12:16:00 EESTPress release

Imaweb/IDF Group (“The Group”), one of the largest developers of customer relationship management (“CRM”) solutions and dealership management systems (“DMS”) for the automotive industry in Europe, announced today that it has completed the acquisition of Serinfer Servicios Informáticos S.L. (“Serinfer”), the computer software segment of the Alvariño Group, a Spanish developer, distributor and supplier of DMS for automobile dealers. The Group is backed by Providence Strategic Growth (“PSG”), the growth equity affiliate of premier asset management firm Providence Equity Partners (“Providence”). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200703005051/en/ Serinfer develops a range of sophisticated products to address the evolving needs of automobile dealers. Its flagship offering is SERAUTO, a complete DMS solution that works modularly and can also be integrated to the existing technology of any dealership or workshop. SERAUT

Taiwan’s COVID-19 response win applause, friendship from around the world3.7.2020 11:52:00 EESTPress release

Once considered the most vulnerable to the COVID-19 outbreak because it’s so close to China, Taiwan has turned out to be a model for the world’s fight against the pandemic, thanks to quick decisions and early measures by its government, and to the high standard of the island nation’s public health system and its people. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200703005042/en/ The management of Grand Hotel in Taipei asks its guests to help form Zero on the building’s facade to celebrate no new COVID-19 cases for the sixth day in a row on May 1, 2020. (Hsu Chao-chang, CNA) According to real-time data released on Worldometer (https://www.worldometers.info/coronavirus/), a website tracking global COVID-19 figures, as of June 30, Taiwan, with only 447 cases, ranked 155th among 215 countries in terms of the number of infections. Only three entities with fewer cases have a larger population than Taiwan’s, which currently sta

Northern Data announces new Block.one backed customer3.7.2020 09:27:00 EESTPress release

Northern Data AG (XETRA: NB2, ISIN: DE000A0SMU87), one of the world's largest providers of high-performance computing (HPC) solutions, continues to enjoy a very successful 2020 with the signing of 180 MW of capacity with a new customer. Northern Data's most recent customer is a Bitcoin mining operation backed by Blockchain Powerhouse Block.one with an initial 180 MW volume and an upsize option to 300 MW, which the company signed today and which shall go live in early 2021. Brendan Blumer, CEO of Block.one, says: "Block.one's focus on leveraging EOSIO to bring increased scalability and transparency to the greater blockchain industry led us to Northern Data and their strategic market positioning and strong leadership. We're excited to be collaborating with them to introduce unprecedented Bitcoin mining solutions, powered by EOSIO." Aroosh Thillainathan, CEO of Northern Data AG adds, "We are pleased that Block.one is convinced of our services and that we have won the company as another bl

ViiV Healthcare Announces US FDA Approval for Rukobia (fostemsavir), a First-in-Class Treatment for HIV in Adults With Few Treatment Options Available2.7.2020 23:39:00 EESTPress release

ViiV Healthcare, the global specialist HIV company majority owned by GSK, with Pfizer Inc. and Shionogi Limited as shareholders, today announced that the US Food and Drug Administration (FDA) has approved Rukobia (fostemsavir), 600 mg extended-release tablets. Rukobia is a novel attachment inhibitor for the treatment of HIV-1 infection indicated for use in combination with other antiretroviral (ARV) therapies in heavily treatment-experienced (HTE) adults with multidrug-resistant HIV-1 infection, who are failing their current ARV regimen due to resistance, intolerance or safety considerations. Significant advances over the past few decades have dramatically improved HIV treatment and for many, HIV is considered a manageable life-long condition. However, HTE adults – which account for approximately 6% of adults living with HIV who are on treatment – have little to no options left due to resistance, tolerability or safety considerations.1 HTE adults are at risk of progressing to AIDS and

Vertex Files Registration Statement for Proposed Initial Public Offering2.7.2020 23:31:00 EESTPress release

Vertex, Inc., a leading provider of tax technology and services, today announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering of its common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Vertex intends to list its common stock on the NASDAQ Global Market under the ticker symbol “VERX.” Goldman Sachs & Co. LLC and Morgan Stanley are acting as joint lead book-running managers and as representatives of the underwriters for the proposed offering. BofA Securities, Citigroup and Jefferies are also acting as book-running managers and JMP Securities, Stifel, William Blair and CastleOak Securities, L.P. are acting as co-managers for the proposed offering. The proposed offering will be made only by means of a prospectus. When available, copies of the preliminary prospectus relating to these securities may be obtaine

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom