Temenos Hits Sustainability Goal for Cloud-Native Banking
Temenos has announced the results of a sustainability benchmark for its cloud-native banking platform, which runs on Microsoft Azure.
The results demonstrate that Temenos’ cloud platform was efficiently able to handle the variable demands of digital transactions while supporting banks in their attempts to meet sustainability goals.
This comes after the fintech launched its first Responsible Generative AI solutions for core banking.
Temenos: Record highwater benchmark for transaction volume
The benchmark, performed by Microsoft, simulated a client using Temenos’ Retail Enterprise Services with 25 million customers and 38 million accounts, which resulted in 12 million loans being processed in a single instance.
Having previously set a record highwater benchmark, Temenos has now seen a 52% like-for-like efficiency improvement for tested workloads compared to its previous release.
Its sustainable architecture, from a 2021 baseline and validated by GoCodeGreen, has a reported carbon impact reduction of more than 50%.
This has been achieved with more efficient code and leaner architecture, resulting in less demand for infrastructure, less processing power and, therefore, less energy consumption.
By increasing the sustainable efficiency of its own software, Temenos can provide tangible energy savings for financial institutions leveraging its cloud-native core banking system.
Powered by Microsoft Azure, the increased sustainability of Temenos’ service points to a wider ecosystem of collaboration on decarbonisation aims, one which banks can tap into on public cloud or as SaaS.
Christian Sarafidis, Chief Executive of EMEA Financial Services, Microsoft, says: “We are thrilled to see our collaboration with Temenos continue to set new standards for core banking in the cloud.
“Temenos and Microsoft have a strategic relationship to meet the growing demand from banks for cloud and SaaS banking services. Together, with our combined expertise we are leading the transition to a more sustainable banking industry.”
Tony Coleman, Chief Technology and Innovation Officer, Temenos, adds: “The sustainability benchmark on Microsoft Azure shows the unmatched speed and efficiency of Temenos’ cloud-native platform helping banks to decarbonise their operations and grow their businesses sustainably.
“Over the years Temenos has worked hard investing considerable R&D to get the best out of the cloud with a platform and solutions that are fully cloud-native. With a leaner and greener architecture, Temenos is by far the most sustainable way to run core banking in the cloud.”
Banks: The end of proprietary data centres and the age of the cloud
The sustainable benefits of cloud-based core banking platforms are, perhaps, a core reason why 51% of global banking executives (per Economist Impact) agree that banks will no longer own any data centres in the next five years, with data storage moving to the public cloud.
Earlier this year, Mambu echoed this sentiment in a report published in collaboration with Google Cloud, revealing that switching to the cloud represents a multi-trillion-dollar opportunity for banks.
Kalliopi Chioti, Chief Marketing and ESG Officer at Temenos, concludes: “Compliance with climate regulation and meeting environmental targets have joined the list of reasons why banks are accelerating the shift to the cloud.
“Temenos is committed to helping our clients reach their own ESG targets, particularly through our cloud-native platform, enabling our clients to significantly reduce their carbon emissions.
“Further, with our Carbon Emissions Calculator, a free tool embedded within Temenos SaaS, we empower banks to track their direct and indirect cloud emissions from banking activities, helping measure progress towards sustainability goals and comply with growing climate regulations.”
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