IBS Journal May 2017
21
Core banking systems replacement “absolutely essential”
systems, as time is running out for them to grasp the advantage they have over challengers and disruptors. That’s according to Temenos CEO David Arnott, speaking at the company’s Community Forum event in Lisbon, Portugal.
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Technology has been defined by three basic drivers since 1900 – needs, wants and engagement – and the unlimited data that consumers have access to has left them attention-short. A mobile phone is all a bank needs to sell a product these days. The bank of the future needs to choose where it will compete in the value chain. Modern banking infrastructures must also “open up” to the fact that customers want access to the “good ideas” that FinTechs can bring in.
A bank, stated Arnott, still has the role of “trusted partner” for consumers, and can embrace that role in introducing
anks need to replace their core banking
new technology. “There’s a lot of froth about FinTech,” said Arnott, but it is no longer threatening market share. Where startups and FinTechs are causing damage is to price. To compete with that, banks need to meet a number of digital targets – targets they can only meet with a strong core. “Core replacement is absolutely essential,” said Arnott.
Arnott showcased some figures to demonstrate the vendor’s healthy market position going into 2017. Over the previous year Temenos had 178 go-lives, an average of one every two days or so. The firm has also spent $145 million on research and development. The Temenos CEO also confirmed that its major projects with Nordea and Bank of Ireland are proceeding apace, with a number of small go-lives occurring for the latter over 2017. Temenos crossed a market cap of $5 billion in 2016, a figure which Arnott confirmed “was now more like $5.9 billion”.
Alex Hamilton
www.ibsintelligence.com
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