Temenos today announced it has signed an agreement with Tech Mahindra (NSE: TECHM), a leading global provider of technology consulting and digital solutions, for Tech Mahindra to provide a core banking offering on Temenos SaaS specifically designed for Electronic Money Institutions (EMIs) in the UK and Europe.

By leveraging Temenos composable banking capabilities and Tech Mahindra services, EMIs will benefit from faster time to market, lower operational costs, scalable architecture and access to over 100 curated Temenos Exchange fintech partners, to offer customized and differentiated services to their end customers.

This new offering on Temenos SaaS is designed to offer EMIs a cost-effective, scalable, and secure banking platform, enhancing their ability to launch operations swiftly with a suite of pre-configured, composable banking capabilities that cater specifically to the EMI sector - with features such as multi-currency accounts, virtual and physical cards, client onboarding checks, domestic and international payments orchestration and routing, transactions screening, and regulatory reporting.

Moreover, the service facilitates dynamic scaling, cost efficiency, and sustainability. It also provides the flexibility to incorporate additional banking functionalities as EMIs evolve, supporting their growth and future-proofing their operations.

This SaaS offering is designed to be a springboard for financial innovation, which can also be leveraged by start-up/challenger banks, smaller established banks, and building societies as a cost-effective yet functionally rich and robust foundation to rapidly develop and deploy financial products and services.

Currently being rolled out at an EMI in the UK, this service is set to initially cater to the UK market – home to approximately 250 EMIs – and will subsequently extend its reach across the European Union. In total there are just under 600 EMIs across Europe, holding an estimated €35bn in client funds.

Mark Yamin-Ali, Managing Director - Europe, Temenos, said: “With almost 600 EMIs in Europe, this partnership opens a large new addressable market for Temenos, and combines our market-leading SaaS banking capabilities with Tech Mahindra’s technology services expertise. This collaboration will help us to bring the agility, cost-efficiency and sustainability benefits of Temenos SaaS to even more financial institutions. Together, we can help EMIs launch innovative payments services faster, reduce operational costs and gain greater speed to market.”

Pankaj S Kulkarni, Head for BFSI - Europe, Tech Mahindra, commented: “Our collaboration with Temenos creates an unparalleled value proposition in the fiercely competitive financial services sector. The joint offering combines the agility of Temenos' open, composable banking platform with our comprehensive suite of services, including customised implementation and managed support. This aligns with our focus on delivering next-generation technology services that achieve ‘Scale at Speed’ to meet the distinct requirements of our customers."