Temenos has demonstrated how its cloud-native Correspondent Banking solution supports the rapid addition of new alternative payment rails and payment types using payment adaptors and an extensive set of APIs. This helps banks and payment service providers to stay ahead of market changes and to grow profitable cross-border payment services on the back of them.

Temenos Correspondent Banking solution includes pre-configured banking capabilities for nostro and vostro account servicing, cash management, cross-border payments, treasury, liquidity management, customer onboarding and financial crime mitigation. It can be taken as a SaaS service or deployed on the cloud, supporting 24 x 7 payments processing. It operates alongside any banking system including Temenos core banking.

The solution is targeted at domestic banks servicing their correspondent banking business through outgoing and incoming cross-border payment flows, or international branches and subsidiaries processing payments for their head office and customers in non-domestic markets.

International payments revenues total up to $200 billion globally which equates to over one quarter (27%) of global payment transaction revenues¹. The world is also moving to instant payments and by connecting instant payment rails in domestic markets to cross-border flows, payments can be executed to a much tighter timeline.

At the same time, banks are under pressure to provide real-time, frictionless cross-border payments services, at low cost to remain competitive and meet compliance and customer needs. They face growing competition from fintechs, high payments volumes due to increasing digitization, continuing globalization of markets, and the need to adhere to new regulations and standards.

Aaron Press, Research Director, IDC, commented: “New rails, new technology, and new business opportunities are driving banks to undertake a range of payments modernization projects. While retail banks are leveraging cloud technologies to help them transform, the cross-border market has been lagging by comparison. As new instant payment schemes and cross-border options continue to grow around the world, banks that want to remain relevant in international payments should consider adding cloud technologies to their cross-border strategy.”

Mel Jacobs-Kemps, CIO Wealth Management & Corporate Banking at ABN AMRO, commented: "With Temenos, ABN AMRO is able to operate a single global payments hub for both high and low-value payments, for domestic and international payments. The solution helps ABN AMRO to reduce the cost of global compliance, achieve extremely high STP rates and increase the pace of innovation for our customers.”

Prema Varadhan, President Product and COO, Temenos, said: “With more ways to send money internationally and transaction volumes booming, it is vital that banks have the right technology and platform to innovate in payments and scale efficiently. As SaaS, the Correspondent Banking solution gives banks a low-risk modernization path to elevate their correspondent banking capabilities helping them maintain and grow their cross-border payments business sustainably. We see tremendous growth opportunities in the payments space, recently being selected by Convera, a global leader in B2B cross-border payments to modernize their payments infrastructure, and we continue to heavily invest in our single code base across account services, banking and payments, making our offering the most compelling in the market.”

The IDC report, New Rails, New Options, and New Challenges Drive Payments Transformation, is available for download here.