Malta’s newest challenger bank Laskaris Finance, which aims to serve high-net-worth individuals and corporate clients, has chosen Temenos to be its cloud core banking provider, reports Ruby Hinchliffe of Fintech Futures, Finovate’s sister publication.
Laskaris is currently applying for a banking license from the Malta Financial Services Authority (MFSA) and the European Central Bank (ECB), which will allow it to work as a credit institution in and from Malta.
Temenos says its T24 Transact core cloud product will enable the Maltese challenger to launch in the “shortest” time frames, keep to regulatory standards, and screen transactions to tackle financial crime with Temenos’ Financial Crime Mitigation (FCM).
“Laskaris accepts the responsibility of challenging the status quo in banking – naturally within the parameters set by the local and EU regulators – simply because clients deserve to be provided with a superior array of banking services,” said Laskaris founder and CEO Roderick Psaila.
The neobank wants to be a ‘one-stop-shop’ for high-earning individuals and corporate businesses by fusing personal and commercial banking needs together.
Malta, despite being just over 78,000 acres, was ranked in the top 20 financial service jurisdictions by the World Economic Forum’s 2017 to 2018 Global Competitiveness report.
Temenos’ Europe MD Steen Jensen said he’s “excited to see the growing list of challenger banks in Europe.” Laskaris is the tenth client for Temenos in Malta, with other customers including e-commerce payments solution Truevo and smart acquiring solution Credorax. Jensen called this “a testimony to our local expertise and growing footprint on the island.”
Founded in 1993, Temenos debuted its Connect Mobile Banking application at FinovateEurope 2015 in London. With 3,000+ bank clients in 150 countries, Temenos reaches more than 500 million end customers. In August, Temenos acquiredKony for $559 million. The company has a market capitalization of $11.8 billion.
Less than a month after securing a $37 million debt financing from BMO’s Technology and Innovation Banking Group, mobile application development platform Kony is back in the fintech headlines with even bigger news: the company has agreed to be acquired by digital banking technology giant and fellow Finovate alum Temenos for $559 million and an earn-out of $21 million.
The acquisition will bolster Temenos’ ability to compete in the digital front office solutions market, specifically strengthening the company’s Infinity offering – which currently has more than 500 banking customers and is widely recognized as a leading technology by industry analysts from Forrester and Gartner. Kony Chairman and CEO Thomas Hogan will serve as President of Temenos North America, post-acquisition, and will join the company’s Executive Committee.
“The power of the Temenos portfolio, combined with Kony’s digital banking applications and multi-experience development platform, will bring the industry’s most robust suite of applications for delivering service, value, and efficiencies from the digital edge to the modern core,” Hogan said. “The strength, scale, and commitment of Temenos will also help protect and extend our market-leading innovation.”
The acquisition is expected to be completed by Q4 2019, and is subject to standard regulatory approvals.
Calling Kony the #1 SaaS digital banking company in the U.S., Temenos CEO Max Chuard highlighted the synergies between Kony and his company. “We are acquiring a digital front office product that has already been successful in the U.S. market and is connected to most third party cores,” Chuard said. “We are also adding a significant amount of exciting functionality and ease of generating customer journeys and experiences that will accelerate Temenos Infinity, providing banks in both North America and internationally with an unrivaled customer experience and omnichannel banking product.”
A long-time Finovate alum, Kony first demonstrated its technology at FinovateFall 2010, and returned to the Finovate stage two years ago for FinovateFall 2017 to present its retail banking solution. Founded in 2007 and based in Austin, Texas, Kony launched its Conversational AI DevKit earlier this month to enable businesses to deploy new technologies to improve customer engagement. In May, Kony announced that its Quantum digital experience development platform would power the new CareLogic mobile app from Qualifacts, and unveiled a new partnership with multiple Finovate Best of Show winner and fellow alum, MX.
Headquartered in Geneva, Switzerland, Temenos demonstrated its Connect Mobile Banking solution at FinovateEurope 2015. The company is also an alum of our developers conference, having presented its B2B Financial Marketplace at FinDEVr Silicon Valley – also in 2015. More than 3,000 banks in 150+ countries – including 41 of the top 50 banks – rely on Temenos’ banking technology to process the daily transactions and interactions of more than 500 million banking customers.
Kony is the second major acquisition by Temenos this year. In July, the company announced its purchase of explainable AI innovator Logical Glue and plans to integrate the company’s machine-learning-as-a-service technology into its cloud-native banking solution. Aside from acquisitions, Temenos has been on an energetic partner-making pace, working with IIG Bank, who agreed to use the company’s Infinity digital front office platform earlier this month; as well as teaming up with FIs like Israeli bank Mizrahi-Tefahot, New Zealand’s TSB Bank, and Pakistan’s Bank of Khyber.
IIG Bank, a specialist trade finance bank based in Malta, will leverage a pair of solutions from Temenos to offer its clients a wider variety of differentiated services from treasury cash management and deposit accounts to documentary credit and trade financing. The bank has gone live with Temenos Infinity, a digital front office platform, as well as Temenos T24 Transact, the firm’s next generation core banking solution.
“Temenos has given us much more flexibility to be able to tailor deposit and trade finance products to specific customer needs,” IIG Bank Managing Director and CEO Raymond Busuttil said. “Temenos banking software is providing us with cutting-edge technology combined with the most complete functionality in private and corporate banking.”
The new technologies will replace legacy systems that IIG Bank said had become both highly restrictive and unable to support new business initiatives. In the context of the country’s anticipated GDP growth of more than 5% this year, IIG Bank believes Temenos’ technology will help it compete in a financial services sector that is becoming more competitive.
Praising the speed of the Temenos implementation, Busuttil added that the partnership will help the bank respond to current demand as well as better prepare for the challenges of the future. “We are already seeing significant improvement which will enable further growth for IIG Bank,” he said. “Corporate customers are demanding more from their banking experience and expect a seamless customer journey. We selected Temenos to future-proof our operations, enabling us to deliver a great customer experience going forward.”
The partnership with IIG Bank is the second big fintech announcement from Temenos this week. The Geneva, Switzerland-based banking software provider teamed up with Mizrahi-Tefahot, the third largest bank in Israel, to replace its capital market systems with Temenos T24 Transact.
Recognized last month by Gartner Magic Quadrant as a Leader in Global Retail Core Banking, and at the Finnovex Awards for Excellence in Digital Banking, Temenos demonstrated its Connect Mobile Banking solution at FinovateEurope 2015. The company is also an alum of our developers conference, presenting its B2B Financial Apps Marketplace at FinDEVr Silicon Valley 2015.
Temenos was founded in 1993. Max Chuard, who joined the company as Chief Financial Officer in 2012, was appointed CEO in February.
New Zealand bank TSB has gone live with TemenosInfinity for online account opening and onboarding in just nine weeks, reports Sharon Kimathi of Fintech Futures (Finovate’s sister publication).
Included in the short implementation period was an API-based connectivity for workflow integration directly with TSB’s existing Microsoft Dynamics’ client relationship management (CRM) system.
It now provides applicants with the option to “save and resume,” returning to an application later, on any channel, without the need to start over.
Hamish Archer, TSB general manager – technology said: “We want more Kiwis to experience our world-class service, so we’re excited to use technologies like this which work seamlessly alongside our people, who genuinely care about doing the best for our customers.”
Martin Frick, managing director – APAC, Temenos, said: “We are delighted that TSB has chosen Temenos to power its growth, and that they are already starting to see results from the implementation.”
Since going live, Temenos Infinity has shortened the time needed to complete customer applications and insert the completed digital application directly into the TSB back office process.
Temenos was founded 1993, and is based in Geneva, Switzerland. The company demonstrated its Connect Mobile Banking solution at FinovateEurope 2015. Later that year, the company participated in our developers conference, FinDEVr Silicon Valley, presenting its B2B Financial Apps Marketplace.
Explainable AI – which enables human analysts who aren’t data scientists to understand how artificial intelligence-based solutions reach their conclusions – is at the center of the prize that is Temenos’ acquisition of explainable AI innovator Logical Glue. Temenos announced today that it will integrate the Logical Glue XAI platform into its cloud-native, cloud-agnostic banking solution, and will be available with all Temenos products.
Many view Explainable AI as a critical component in making artificial intelligence work in heavily-regulated industries like banking and finance. Temenos CEO Max Chuard called the technology “a game changer” for customers, adding: “It will give them greater transparency and explainability of AI automated decisions and recommendations helping them harness AI technology to create seamless customer journeys and automate manual processes while meeting the growing regulatory demands.”
Logical Glue provides a purpose-built, Machine Learning as a Service platform that does the work of data scientists at speed and scale. The company’s technology, demonstrated live at FinovateEurope 2016, enables users to leverage raw data to build highly accurate predictive models, see how those models can be applied to real-world business challenges, and then apply those models to the new data in real-time.
“With our patented, cutting-edge XAI platform and our highly experienced machine learning experts, we are helping financial institutions harness the explosive power of XAI and helping them master AI decision-making,” said Logical Glue co-founder and Chief Science Officer Hani Hagras.
Founded in 2012, Logical Glue is headquartered in London, U.K. In May, Logical Glue announced a partnership with managing digital agent Azur to help the company improve its risk analysis. Two years ago, Logical Glue secured an investment from U.K. entrepreneur Tom Singh, founder of fashion retailer New Look. “Logical Glue provides a straightforward and accessible machine learning platform for lenders and insurance providers,” Singh said in a statement when the investment was announced. “(The technology delivers) faster and more accurate decisions that will underpin increased productivity and profitability.”
Temenos demonstrated its Connect Mobile Banking solution at FinovateEurope 2015. The company is also an alum of our developers conference, presenting its B2B Financial Apps Marketplace at FinDEVr Silicon Valley 2015. Based in Geneva, Switzerland and founded in 1993, Temenos notes that more than 3,000 firms around the world – including 41 of the top 50 banks – are daily users of its banking, payments, fund, and wealth management solutions.