Banking competition is heating up. Neo-banks are gaining market share and serving customers for around one-third the cost of traditional banks. FinTechs are focusing on profitable value-chain segments. Big tech firms, with their vast client bases, represent a significant threat, and a few incumbents are spending extensively in innovation, leaving laggards in the shade.
The global neo-banking market is estimated to reach USD333.4 billion by 2026, representing a 47.1% CAGR over the following five years according to ‘kbv research’.
The major value addition provided by Neo-banks is a smooth and integrated client experience while handling their finance and commercial banking needs. This is accomplished by offering an integrated platform for automated transaction banking, payments, tax compliance, accounting services, investment requirements, and so forth.
This was made feasible by utilizing a lighter technological stack. A core banking system is mission critical for banks, and a Neo-bank’s debut may depend on a successful implementation.
What is Temenos Transact? How can it help Startup banks meet high expectations?
Temenos Transact is a real time, cloud native core banking system adopted by many popular startup banks today. Being known for its rich functionalities, it offers solutions for retail banking, corporate banking and wealth management companies. Here are 5 reasons why Temenos Transact is an ideal solution for startup banks
#1 Cloud Based and Beyond
Startup banks need to put a technology foundation in place that can help enable it to compete and scale as the company grows. By starting off with your core banking system on the cloud, you will be able to increase operational efficiency and be flexible, more importantly having a lighter technology system in place can prove to be advantageous in the long run. Implementing your core banking system in the need cloud also results in faster implementation, lower cost of deployment and hence launching your new bank on time. Even though a very small percentage of banks have migrated to cloud, industry experts this number will become voluminous soon.
#2 Customer Experience driven
To break the market, customers need to be kept at the center. Providing superior customer experiences is the key that can help customers choose your new bank vs a traditional bank. Working your way from the core banking system, a robust and digital friendly customer facing system is needed that is omni-channel. Temenos Transact can be followed by a seamless implementation of Temenos Infinity, a digital suite that can help give great first impressions to your customers. Monitor customer engagements, cross sell, up sell and predict what your customers might need to have a success financial life.
#3 Release New Products with Speed
With customer behaviors changing drastically and being unpredictable at times, this can be a unique selling point for your new bank – the development and emergence of new services, something a traditional bank with legacy systems can never think of. Temenos Transact allows your bank to create new services and deploy them within a short span of time. Bringing together the instantaneous nature of your core banking changes clubbed with the ability of being scalable and agile, your bank can leverage this opportunity.
#4 Welcome to the world of Instant Upgrades
Once you have implemented Temenos Transact, changes/new releases/upgrades can be done within a day. Code, test and deploy changes faster is the mantra of a self-service environment called Temenos Continious Deployment. When you are implementing a core banking system – how to handle frequent changes in the code has to be a question that you will need to ask yourself. Understanding the need for DevOps here is important.
#5 Faster Third Party Application Integrations
Be it any third party application that you are going to use for example identity management solution, making sure it’s aligned with your new core banking system. Temenos Transact offers unique integration capabilities with existing systems, applications that are required to run smoothly for day to day operations.
As a startup/challenger bank you have the necessity to differentiate your services, your customer experiences to create a mark in this highly competitive space.Aspire Systems is a global Temenos implementation partner focused on faster implementations with the help of in-built frameworks, an agile development methodology and a digital first approach to keep up with high customer expectations.
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