Temenos (SIX: TEMN), a banking software company, announced on Thursday it has hit a new milestone by supporting a total of 60 challenger bank clients. Temenos reported that digital banks, such as Alba, Alpian, Banco del Sol, Flowe, FlowBank, Lunar, Next Commercial Bank, Pepper, Varo Bank, and WeLab Bank, have selected the company’s cloud-native, cloud-agnostic technology, joining the more than 3,000 Temenos customers around the globe.
Temenos further revealed that its SaaS technology enables challengers to elastically scale based on business demand and service new customers at any growth rate. Challenger banks may create hyper-efficient cost models and in turn, pass on the benefits to their customers. Speaking about the milestone, Max Chuard, CEO of Temenos, stated:
“Temenos has a relentless focus on innovation and is investing over USD 1bn in R&D in the next few years. With Temenos’ cloud-native technology, challengers benefit from lower total cost of ownership and agility, rapid innovation and can offer outstanding banking experiences.”
Temenos software is proven to enable its top-performing clients to achieve cost-income ratios of 26.8% half the industry average and returns on equity of 29%, three times the industry average. These clients also invest 51% of their IT budget on growth and innovation versus maintenance, which is double the industry average, proving the banks’ IT investment is adding tangible value to their business.