the Customer-led Digital Banking Revolution
- TEMENOS seeks to democratise banking by offering services that fit in with consumer’s day to day lives.
- The company’s agile cloud-native platform will help traditional and new banks, as well as fintechs, offer the latest services to consumers.
- The company will be represented at the 49th CAB with the theme “Banking for the Future” in Saint Lucia.
- The banking of the future will be assembled “piece by piece” instead of being built as monoliths.
Caribean, october 19, 2022. – New and established banks are looking to take advantage of the latest disruptive technologies introduced during the pandemic. According to TEMENOS, the future of finance will offer increased freedom and choice to the consumer. To talk about this topic, Enrique Ramos O’Reilly, regional director for LatAm and the Caribbean of the company, will be at the 49th Conference of the Caribbean Association of Banks, in Saint Lucia, which will take place from October 25 to 29. The theme of his panel will be ‘Tailored Banking & the New Industry Trends’.
“The pandemic has inspired a whole new tech-savvy generation to educate themselves about the mobile financial services available to them, including cashless transfers and digital investment tools, to name just a few, and we want to help boost that with our offering of composable banking,” says the executive.
The new consumer expectations have motivated banks to offer a whole range of services that empower consumers, such as all-in-one platforms that provide virtually all traditional financial services in a mobile format. O’Reilly explains: “while there’s been a boom in so-called ‘neobanks’ and other disruptors in the financial sector, some of the more traditional financial institutions have found it harder to offer the same innovative services as their non-legacy rivals. While the new kids on the block have also encountered difficulties with brand-building, trust and liquidity, in return.”
However, change is coming as TEMENOS predicts that in the future, all banks will be open and composable, seamlessly integrating into people’s daily lives. This will drive further adoption and engagement from younger financial consumers who achieved unprecedented financial inclusion during the pandemic.
“While at first a revolutionary change, many consumers now expect their financial experiences to be seamlessly integrated into their daily lives through digital channels. Banking no longer happens only within the walls of a bank – and consumers won’t go back to how banking used to be. With the acceleration of 5G technology across the entire Latin American region, customers will be demanding even more from their financial services,” the executive explains.
TEMENOS provides the software that powers 1.2billion people’ daily transactions, or 30% of the total global banking population. With its composable banking offering, the company expects to power the growing wave of digital entrepreneurship and fintech innovation in Latam and the Caribbean, as well as provide world class services for the region´s financial consumers.
“While commentators like to say that the pandemic accelerated financial technology by ten years in the space of two, it’s clear that the demand from consumers for decentralised, agile and secure financial services is not going away. This gives banks the perfect opportunity to get composable,” he adds.
According to TEMENOS, banks of the future will be assembled ‘piece by piece’ rather than built as monoliths. They will combine the digital disruptive technologies of neobanks with the brand reputation, security and liquidity of the larger financial institutions. By adopting some key technologies, all banks can gain the edge and provide the competition-beating service that digitally-empowered consumers are looking for. This is what is known today as compostable banking.
O’Reilly explains, “Make sure your platform can run freely in any environment, whether on-premise or through a public cloud. Adopt an ecosystem of developers with a culture of innovation. Pride yourself on robust functionality, be database agnostic and take advantage of architecture based on APIs.”
He adds, “While newer companies may boast some advantages, such as being ‘born in the cloud’ and more digitally agile, banks of any size can compete as long as they have the right technology strategy. Those who understand the urgency and start migrating now from the old technologies will win. While those that are late in joining the race will find it more difficult to compete in this new banking paradigm.”
“Rapid innovation through the cloud; agility and scalability; and cost efficiency. These are the three major benefits from composable banking. And the time to act on them is now,” O’Reilly concludes.
More Information:
Panel by Enrique O’Reilly – ‘Custom Banking & New Trends in the Industry’.
October 27 – 12:15 p.m.
CAB – 49th Conference of the Caribbean Association of Banks – Saint Lucia
Days 25-29 October, at the Harbor Club Saint Lucia, Curio Collection by Hilton, in Gros Islet.
About Temenos
Temenos (SIX: TEMN) is the world’s leading open platform for composable banking, creating opportunities for over 1.2 billion people around the world every day. We serve two-thirds of the world’s top 1,000 banks and 70+ challenger banks in 150+ countries by helping them build new banking services and state-of-the-art customer experiences. The Temenos open platform helps our top-performing clients achieve return on equity three times the industry average and cost-to-income ratios half the industry average. For more information, please visit www.temenos.com.
