Temenos, the market-leading provider of mission-critical solutions to the financial services industry, announces that IBS Intelligence has once again ranked T24, Temenos’ core banking solution, in top position in its 2015 Sales League Table. This is the third consecutive year that T24 has topped the table, an annual ranking of core back office systems sales to new name customers across the banking and treasury and capital markets.
Temenos, the market-leading provider of mission-critical solutions to the financial services industry, today announces that IBS Intelligence has once again ranked T24, Temenos’ core banking solution, in top position in its 2015 Sales League Table. This is the third consecutive year that T24 has topped the table, an annual ranking of core back office systems sales to new name customers across the banking and treasury and capital markets.
A slow growth but the first since 2007
In 2014, T24 took market share in a consolidating market place. According to the IBS League Table, T24 won 37 deals in 2014, 5% more than in 2013, and won a total share of 22% of the core banking deals. In total, 41 vendors won business in the core banking market in 2014, but the top 5 vendors took 51% of the deals, demonstrating that the market is consolidating around of a few, global vendors able to meet the international requirements of the largest banks and to invest sufficiently in R&D to keep up with the rapid pace of technology change.
The table shows that the market for core banking systems is at last showing signs of recovery. In 2014, sales of core banking systems – that is, excluding treasury and capital markets deals – totalled 172, which equated to growth of 2% over 2013. While the growth was low, this represents the first year of growth since 2007, before the banking crisis, when over 300 deals were signed.
Western Europe and North America both grew in the year. Western Europe is the biggest market for core banking sales and the one that has contracted most since the financial crisis, so a return to growth, albeit modest, bodes well for future. Growth in North America was much stronger, with sales nearly doubling compared to the previous year, as banks begin to recognise the need to change systems – and increasingly look to international vendors – to cope with changing customer behaviour and a changing competitive environment. In 2014, Temenos capitalised on strong momentum to win several new customers in North America, such as First Ontario Credit Union and Bermuda Commercial Bank.
Core banking is essential to a successful digitalization
“We are delighted to see Temenos once again ranked number one in the IBS league table. Core banking replacement remains absolutely fundamental to a successful digitization strategy. Without a single data model, real-time transactional data and a complete view of customers, banks won’t have the right foundations to deliver the rich and personalised experience that consumers want. So, it is pleasing to see the market start to recover after the financial crisis. In particular, the strong growth in the US market is very encouraging. The US market is undergoing the same structural change as elsewhere, but few incumbent suppliers are able to offer the real-time, flexible core systems needed. Following recent acquisitions, such as Akcelerant, and the launch of a US Model Bank for T24, we believe we are well placed to capitalise on this opportunity. We are also starting to see larger international banks looking to progressively modernise their systems, where we believe we are strongly positioned given our systems’ architecture. So, we think 2015 will be another year of recovery for the market and another strong year for Temenos,”said Temenos CEO David Arnott.