North America


It has been a stop-start effort in North America for Temenos, but it is by no means alone in finding this a difficult region to crack as an outside vendor. There is business to be had within the international operations of foreign banks, sometimes with these scooped up in multi-site roll-outs, but it has been much harder to sell to domestic US banks. They have tended to turn to a well-established set of domestic suppliers (somewhat reduced in the last few years due to consolidation), often with smaller institutions taking the systems on a hosted basis. Where one or two US banks have opted for non-US core systems (Infosys and Oracle FSS had breakthroughs), the fact that the projects have typically not been successful is not likely to have helped the progress of non-US players as a whole. Temenos’ attempt with a partnership with domestic heavyweight, Metavante, came to an abrupt halt when, in May 2009, it was announced that Metavante was to be acquired by fellow US banking system supplier, FIS. Metavante was to have tailoted and then sold Temenos’ seldom seen high-end retail banking system, Temenos Core Banking (TCB), for the US market. There was a brief falling out between Temenos and Metavante, with legal threats. Temenos’ Chuard told IBS in May that the original agreement had been binding to both parties, even in the event of one or other being acquired, and that the contract also contained certain minimum royalty payments to Temenos until 2012. In the end, a settlement was reached in July for the termination of their agreement. The main area of success for Temenos has been in Canada within the credit union market, where it came to gain the three largest institutions. The first credit union to come on board was North Shore Credit Union, which has proved to be a proactive customer ever since and was the site for the development of a T24 Model Bank for Canada. T24 had a single Canadian site ahead of this, National Bank of Greece (Canada), based in Montreal. ‘We visited the bank and were able to see T24 live,’ said Fred Cook, CIO at North Shore. North Shore Credit Union had been using a bureau-based solution once marketed by Datawest Solutions and now owned by US vendor, Open Solutions (subsequently Fiserv). It was concluded that T24 would best support its banking products and ‘high-touch’ customer service. The system was deemed to have a wide range of functionality and was also felt to provide the best environment for real-time integration with North Shore’s CRM and other systems. North Shore signed at the end of 2006 and the project kicked


off the following March, with HP working on it and providing hosting. The Credit Union took the Microsoft SQL version of T24. North Shore went for a ‘big bang’ implementation, with this happening over a long weekend in August 2009. The second largest in terms of assets, Coast Capital


Savings, took the system in 2009. This was to replace FIS’s Profile. Coast Capital’s CIO, Sheila Baker, said: ‘Coast Capital Savings is a growing organisation, and as we continue to grow we need a banking system that consolidates our current multi-


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application environment. We’re at a size where it makes sense to streamline these systems, we have over 400,000 customers and 51 branches right now, so it was time to make a change.’ Baker cited a number of reasons for selecting T24. ‘We felt it met the majority of our requirements. It has allowed us to consolidate a number of core systems and bring them into one.’ The vendor’s focus on banking products also appealed. ‘The expertise and experience that comes from that focus is something we hope to capitalise on.’ Temenos’ new Canadian Model Bank also had an influence on the deal. ‘We’re quite closely linked to North Shore Credit Union so we’ve been able to have ongoing conversations with them about it.’ Baker described business process redesign as ‘critical’ for organisations like Coast Capital Savings. ‘They have a very well developed system in terms of business redesign. So their bank-in-a-box model really allows us to take advantage of the time and development that Temenos has done.’ The third largest, Servus Credit Union, became the third


taker a year later. Servus was the sum of three parts, with one part using the Fincentric-derived Ovation, now owned by Open Solutions, another Open Solutions’ TCCUS, and the other part with a credit union service bureau offering. Ovation and TCCUS were considered, so too a relatively new Fiserv system, Acumen, that had 15 Canadian credit unions users. Servus’ COO, Eric Dillon, said Servus was impressed with Temenos’ commitment to its product and annual investment. T24 was also felt to be sufficiently flexible to constitute a ‘hybrid’ solution, somewhere between a standard package and the flexibility that stems from having the source code. In addition, the system was felt to have the closest fit from a functionality perspective. Servus paid two site visits to North Shore Credit Union, where the implementation was going well. Coast Capital signed for T24 during Servus’ selection and this was also reassuring. It was also Dillon’s belief that the largest credit union,


Vancity Credit Union, would sign shortly. This duly occurred, in December 2010, giving Temenos the full sweep of the top three. This was for Vancity’s retail and commercial banking operation systems, with the aim of reducing complexity and improving flexibility. Vancity was just ahead in terms of size, with 414,000 members and 59 branches at the time of the deal.


The Canadian version of T24 was fully applicable for banks,


not just credit unions, emphasised Green. He explained that unlike in the US, where credit unions were restricted by regulations in the products they could offer, their Canadian counterparts could operate in a similar way to banks and compete with them. ‘We see no challenges in crossing over to the banking sector in Canada.’ In the US, the sole Metavante-derived client, EverBank,


was apparently set to go live with T24 in mid-2011. Green described the undertaking at EverBank as ‘strategic’ for Temenos. ‘A lot of US banks [EverBank was one of them]


Universal Banking Systems Market Report | www.ibsintelligence.com


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