Leading universal bank kicks off Temenos technology transformation with one-year project to launch a digital bank in Israel
Temenos (SIX: TEMN), the market leading provider of mission-critical solutions to the financial services industry, today announces an agreement with Bank Leumi to commence a major project to renovate its existing outdated core systems with Temenos’ T24, its core banking software, and Temenos Connect, its solution for digital channels.
With this move the bank will progressively renovate its technology over a number of years, starting with a one-year project to launch a digital bank in Israel. The project is expected to result in several million dollars a year in IT maintenance cost savings.
Dan Yerushalmi, COO, Bank Leumi, said: “Our existing banking technology is built on multiple, complex outdated systems and is very expensive to operate. The move to T24 will give us a simple, flexible solution that will allow us to launch new services faster and at lower cost across our entire portfolio. Starting with the digital bank project in Israel gains us competitive edge in a greenfield market, while at the same time prepares us to roll out a global solution across all business lines.”
David Arnott, CEO at Temenos, said: “In an industry where the cost of maintaining legacy systems takes 76% of banks’ budgets*, replacing existing systems with a modern, packaged digital platform allows banks to simplify their infrastructure, make massive efficiency improvements, and drive down costs. It also gives them the right real-time, customer-centric foundations to be able to offer rich, interactive customer experiences. The choice by Bank Leumi to progressively renovate legacy systems is an excellent way to speed up time to value while reducing risk.”