Temenos today announced that it has expanded its Banking-as-a-Service (BaaS) capabilities on Temenos Banking Cloud to meet the technology needs of organizations offering BaaS from licensed banks to specialist BaaS providers servicing brands or fintechs. With Temenos Banking Cloud incumbent and non-incumbent banks as well as BaaS providers can establish and scale their BaaS programs fast with minimal effort thus opening up new revenue streams.

Temenos offers API-driven banking capabilities ranging from origination to fulfillment of financial products across retail, SME, corporate banking and wealth. With Temenos’ new Open Products capabilities, licensed banks and BaaS providers can create and service highly-configurable financial products, enabling brands and fintechs to differentiate their embedded finance offerings.  

In the BaaS ecosystem, brands and fintechs – from retailers to ride-sharing apps – are embedding financial services in their offerings to give a seamless customer experience, build customer loyalty and increase revenues. Temenos’ Open Products addresses this requirement by decoupling product design and servicing from underlying processing systems. This allows new products to be designed on top of standardized banking services, and then published independently ‘as-code’, making them extensible and upgradeable through Temenos’ extensibility framework.

For example, if a brand wants to offer credit services at the point of sale, they could consume Temenos lending service from the BaaS provider, and then leverage Open Products to design differentiated features, such as pay later offerings, variable rates, or early payment incentives. 

To license-holder banks, Temenos Banking Cloud offers always-on customer services such as payments, orders and credit scoring. Temenos’ extensibility framework enables banks to explore banking services and configure or extend their functionality. Temenos provides a high-performance, API-based, cloud-native platform for banks to offer financial services to serve e-commerce brands and fintechs at scale.

Demonstrating the scale of Temenos’ platform, a global payments provider launched its Buy-Now-Pay-Later service on the Temenos Banking Cloud, reaching 25 million BNPL consumers which equates to 150 million loans, this was the fastest and most successful product launch in the company’s history.

In a recent benchmark with 100 million customers and 200 million deposit accounts with 100,000 transactions per second, the Temenos platform reached up to 61 transactions per second per core on AWS Cloud, a world-class performance on scalability and efficiency proving its ability to help banks massively scale and cater for the high volumes of transactions in the BaaS world as multiple brands are hosted on a single platform underscoring our green architecture.

Furthermore, Temenos caters for the technology needs of BaaS providers complementing their payments and cards services with banking technology. With Temenos platform, BaaS providers can offer an end-to-end BaaS infrastructure including regulatory support to help brands provide embedded finance.

To BaaS providers, Temenos also offers APIs to connect to multiple brands or fintechs and help them deliver digital journeys to their customers and to service multiple products per brand from a highly scalable single platform.  Temenos banking platform can also power 'as a service' offerings by BaaS providers such as personal loans and business credits. The complexities of running multiple brands with different customer bases that share common infrastructure and books of records for regulated banks is easily handled by Temenos’ proven multi-bank architecture.

Mbanq, the leading BaaS provider, is leveraging the Temenos platform to offer BaaS services to its clients. Temenos recently announced that it has invested in Mbanq to capture the BaaS opportunity in the US.  

Vlad Lounegov, Chief Executive Officer, Mbanq said: “Temenos banking platform combined with Mbanq’s complementary technologies such as a multi-currency, multi-asset patented digital wallet, brings to market a differentiated BaaS proposition for fintechs and brands as well as compliant banking and payments capabilities to the regulated partner banks.” 

Philip Barnett, President Americas, Temenos, said: “Our partnership with Mbanq extends our addressable market by opening up a new channel to offer BaaS services directly to consumer brands, an incremental market to our business. Together, we bring to market a unique combination of capabilities in embedded finance underpinned by broad and massively scalable functionality, combined with value-add services, such as regulatory and compliance. To sponsor banks, we can offer a parallel core to run their BaaS business separately and securely by integrating to their existing core banking system and with brands.”