downturn was reflected in its financial results, particularly a slump in Q4 licence revenue. In the IBS Sales League Table, it was pipped by one by Oracle FSS.


This was the year of Dubois, when a stated focus had


been on getting customers live, but normal service was resumed in 2012 in terms of sales. It recorded 34 new-name deals and pulled well ahead of Oracle FSS. However, there was no escaping the low-end, geographically diverse nature of Temenos’ 2012 haul. It won a couple in its Canadian stronghold, plus an international operation in the US. One small international operation in Mexico was the complete haul for Central and South America, bar one in the Caribbean. In the Middle East, there was a much-publicised signing with Jordan Ahli Bank and a couple of others in the Middle East but the biggest gains were in Africa (nine) and Asia/Asia Pacific (ten). In 2013, another depressed year, Temenos kept up


the quantity of new-name deals so that it topped the IBS Sales League Table by some distance, with 35 wins for T24. However, the year was not without setbacks for Temenos in general. There was the Scoban/Hampden & Co reversal and it lost another of the Actis user base in Germany when Misr Bank Europe (a corporate bank) moved to a rival system from Pass Consulting, complaining it had been ‘forced’ to leave Actis’ Paba/Q system by Temenos. Temenos also appeared to be steadily hemorrhaging customers from the acquired Viveo user base in French-speaking countries. The latest to go in 2013 were Banque Delubac in France (a private investment bank) and Banque de Développement Local in Algeria (BDL, a state-owned universal bank), both to SAB. Bank of China in France followed, cutting over to SAB’s system in late 2014. At face value, Temenos again weathered the storm better than most in 2013. It maintained reasonable financial results (including a recently announced four per cent increase in revenues for 2013 and guidance of five to ten per cent increase in revenues for 2015 and ten to 15 per cent for software licensing). The down-side was again the size and far-flung nature of its T24 successes. Every one was in the tier three or, mostly, tier four category. There were no multi-site deals. It looked as though the increase in licence revenues stemmed in part from sales of other applications and renewal agreements (it shouldn’t be forgotten that Temenos started to switch from perpetual licences to ten-year ones around 2003-2005). That ten-year model has started to interest analysts in particular as, clearly, the renewals should now be having an impact. In fact, it isn’t nearly as clear cut as expecting all of the new-name signings from 2005 to be renewing in 2015. Firstly, Temenos’ original efforts produced mixed results. Some users dug in their heels and resisted term-based licences of any sort. Others agreed but for a longer period. Some, sensibly, agreed the renewal terms when the original contract was signed. Moreover, some have extended their licences before the deadline, perhaps when upgrading to a new release or taking additional components, with Temenos’ sales team bundling in the renewal as part of the new deal.


One other down-side in recent years has been in the wealth management space, where the bulk of the multi-site deals from tier one banks have gone to Avaloq. These have included Deutsche Bank, seemingly – as mentioned – in preference to the previous T24 route, HSBC, Barclays and Westpac. Lloyds TSB, a previous signing for T24, was also believed to be evaluating Avaloq during 2014. The aforementioned win at Banesco in Venezuela and State Bank of Vietnam in early 2014 seemed to bode well for the year and Temenos once more benefited from relative stability. Its financials remained steady and there were seemingly no choppy waters. It has the challenge of turning its Trinovus acquisition in the US into a success, it still battles with delivery, and it is also reworking its channels offerings, as it seeks to crack this part of the market after previous attempts. And at the end of the day, T24, which has served the market so well and has had so much R&D, is not getting any younger, although it benefits from the lack of new generation challengers. Euro Pacific Bank, a small offshore investment bank based in St Vincent and the Grenadines, reached a decision on new banking software. The bank signed for Temenos’ T24 core banking system, including the AML component, provided on a Software-as-a-Service (SaaS) basis. It is hosted in Microsoft’s Azure Europe environment. The deal was won against Temenos’ frequent contestant in the private banking software space, ERI, and its Olympic core system. In the year 2014, Temenos had one of its three Islamic deals for T24 in Yemen, at Enjaz Capital, and another in Iraq. Inter-national Turnkey Systems (ITS) had two of its four Islamic Ethix successes in Libya, at Assaray Trade & Investment Bank and United Bank for Commerce & Investment. Although Temenos did not win many new selections in 2014, additional sales to existing customers meant it was not far off a similar performance to previous years.


Switzerland-based private banking group, Julius Baer,


concluded its lengthy selection process to find a find a new core banking solution to harmonise its operations worldwide. The winner being Temenos and its T24 offering, beating rival Avaloq to the deal at the final stage. The news was greeted cheerfully by Temenos’ shareholders, following the disappointing Q4 revenue figures. Julius Baer then embarked on a separate search for an implementation partner. DNB Luxembourg, a private banking subsidiary of major


Norwegian banking group, DNB, signed for Temenos’ T24 core banking system and Temenos Connect for digital channels. The contract was signed and the initial gap analysis completed. The implementation work will be carried out by Temenos’ local partner, Syncordis. Temenos landed one of its largest ever deals, with Nordea. The vendor was selected in 2015 to provide its T24 core banking system to standardise operations across the group. Accenture was picked as the integration partner. Sagicor Bank Jamaica went live with Temenos’ T24 core banking system. At the front-end, the bank rolled out the


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