The Future of Banking is Powered by Open, Fast and Scalable Thinking

Earlier this month Apple dropped the mic on the US banking industry with its announcement of high-yield savings account in collaboration with Goldman Sachs. Apple cards users can now opt for savings accounts that will yield APY of 4.15% - that’s 10x the US national average. Even more, this comes with no fees, no minimum deposits, and no minimum balance requirements.

While banks are reeling under the pressure of bleak economic outlook, trust deficit and low incomes, announcements like this one from Apple have huge impacts. Banks are facing multiple forces at a time which impact their business models. Traditional banking as we may know it, is over.

Banks need to take a strategic, long-term view on defining their future. Their future will be defined by their ability to drive hyper personalization, rapid innovation and building an ecosystem play. To become future-ready, banks can use the principles of Open, Fast and Scalable services, which would be foundational for their business and operating model. 

Becoming Future-Ready

Open

Open Banking framework gives banks the flexibility to develop innovative, ground-breaking technology and agility to adapt to changing market dynamics. It allows seamless data flow in digital banks through APIs and Microservices. With Open services, banks can offer seamless experiences across their mobile app, digital assistants, or chatbots and even third-party POS systems.

Fast

Banks need to accelerate the pace of change to launch and offer new services including ones built on newer technologies like Metaverse, Blockchain and Digital currencies. Business, Operations, and IT teams need to break silos and use data-backed insights to speed up innovation and build better services. 

Scalable

Cloud is becoming the bedrock of scalability. Cloud allows banks to innovate with agility, add new digital services and products on the go. It supports the transition from monolithic legacy architecture to modern modular micro services architecture, which can be a gamechanger for the banks.

All these factors combined with composable banking features and hybrid cloud help make banks future-ready.

Enter Temenos Banking Cloud

Temenos Banking Cloud brings together the world’s favourite banking services, an innovation sandbox and a rich fintech marketplace. Powered by an explainable AI engine, it is instantly available to all banks through a self-service portal.

Using Cloud, Temenos offers Temenos SaaS and implementation on AWS/Azure/Google cloud. With Temenos Banking Cloud, banks can run always-on banking services that can be scaled instantly and securely while dramatically reducing the cost of operations.

Composable banking is better due to its pre-assembled services, helping banks to scale at a rapid pace and deliver business growth.

Cognizant is a leading Temenos partner since 2009. Our partnership has shown significant benefits for financial institutions across the globe. Our system integration implementation services coupled with an intuition-led mindset helps banks become future-ready.