Temenos (SIX: TEMN), the banking software company, has strengthened its cloud-native, cloud-agnostic Temenos Infinity for Retail Banking offering with the introduction of the Robo-Advisor and Goal-Based Investing apps. This game-changing addition allows retail banks to quickly and easily get to market and effectively compete against investment firms. They are further able to differentiate themselves against retail banks that do not offer investment services. It also addresses the needs of the modern banking customer for accessible and low-cost investing tools.
Robo-Advisor allows retail banking customers to create or adjust a desired portfolio, based on personalized criteria such as risk tolerance, target dates and asset size, by themselves or with an advisor. The solution manages the investments automatically in line with the target allocation model. Goal-Based Investing enables customers to define specific financial goals, such as a holiday home purchase or retirement, view simulation results illustrating how they can achieve those goals, and then put the investment plan into action. For example, a banking client could establish their target portfolio, identify a regular savings amount to reach their goal, and implement a monthly transfer from their current account to each portfolio sector, all within the consistent Temenos Infinity user experience.
Adding standalone investment tools often requires complex integration. By contrast, Temenos gives banks simplicity and speed-to-market by separating the customer-facing channels from the back office and making them easily connected via APIs and microservices. The wealth apps for Temenos Infinity are available for any core banking system or pre-integrated with Temenos T24 Transact.
The wealth apps in Temenos Infinity are in direct response to the industry’s shift from standard products that focus only on returns to customer-centric, relationship-building services. The wealth management industry is expanding into the mass affluent segment, leveraging automation and technology to start providing services at lower price points and open new revenue streams. At the same time, high competition and market demands are leading retail banks to add automated investment options alongside their other products. Temenos Infinity for Retail Banking enables retail banks to offer new and existing customers these services easily and cost-effectively.
Temenos Infinity for Retail Banking, part of Temenos’ suite of cloud-native, cloud-agnostic products, leverages Temenos’ decades of experience in financial services software. Robo Advisor and Goal-Based Investing bring a digital wealth experience to a broader market and enables retail banks to better serve their customers’ investing needs.
Alois Parker, Senior Analyst, Wealth Management, Aite Group, said: “Barriers to investing are coming down, which is allowing banks to provide investment products and advice to customers who have not previously had direct access to these capabilities because of the high professional fees. At the same time, it is essential for banks to add tangible value to client relationships, now more than ever before, to truly differentiate themselves and garner loyalty.”
Darryl Proctor, Product Director, Digital, Temenos, said: “By expanding Temenos Infinity for Retail Banking with Robo-Advisor and Goal-Based Investing, retail banks can offer personalized wealth management products and services to their customers from a single platform, alongside other banking services. This will enable them to address the growing segment of next-generation investors, who are looking to make informed investment decisions and achieve their financial objectives in line with their life events. This means increased revenue opportunities from attracting new customers and increased profitability and customer retention from existing customers.”
The addition of the wealth apps for Temenos Infinity for Retail Banking provides packaged omni-channel user agents as well as a full set of consumable APIs. It provides all the functionalities needed for automated investment management including client profiling, asset allocation management, constraints, rebalancing, portfolio analysis, and more. In addition, it provides 24/7 real-time capability to allow banks to deliver superior service to clients, while empowering advisors by automating time-consuming compliance and back-office functions. Temenos Infinity Wealth and Temenos Infinity Retail Banking products are used by top tier banks around the world.