TEMENOS CoreBanking

Product Overview

TEMENOs CoreBanking

Contents

Introduction What TCB means for the bank A global platform for the retail banking value chain An overview of TCBs internal architecture TCB Infrastructure Summary

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TEMENOs CoreBanking

Introduction
TEMENOS CoreBanking is the next generation, retail banking solution
TCB is a proven solution.
TEMENOS CoreBanking (TCB) helps banks to design and distribute products quickly. After being granted government approval for an afnity savings product, one TCB customer was able to create and offer the product within the rst three business days from approval. They secured 63,000 accounts and generated $3 billion (USD) in deposits in the rst two weeks of the offering. Another TCB customer was able to reduce their time-to-market for new products by 74% in the rst year of implementation.

TCB is a proven solution.

TCB supports multiple institutions within the same database. One TCB customer is running 71 banks with over 3,800 branches and processing an average of 4.6 million transactions per day. TCB enabled this particular customer to reduce IT cost-to-asset ratio by 34% and gain over 10% of the market share of their country. In addition, they were able to increase products per customer from 1.1 to 3.2.

TCB is a proven solution.

TCB is designed for mid-to-high volume retail operations. One of the top 50 banks worldwide runs TCB and processes 17 million peak daily transactions. TCB enabled them to simplify their business processes, standardise transactions and take 7,500 processes down to 2,600 processes. This bank increased revenue, decreased costs and experienced a return of $54.1 million (USD) in their rst year after they went live on TCB.

TEMENOs CoreBanking

What TCB means for the bank

TCB is the foundation for achieving process excellence across the nancial institution
TCB for bank users
From its inception, TCB was designed to put bank users in control by helping them:  Design, create and distribute new products quickly C  reate, track and measure marketing campaigns and customer targeting programmes  Manage risk profiles TCB will help you achieve operational efciency by: Streamlining back office procedures Standardising the account process backbone for all account types Delivering complex products over the sales and delivery channels S  tandardising transaction handling using exception rules and workow P  roviding parameter driven options for code independent product creation With TCB, banks can offer their customers products priced according to the whole customer relationship. Those products can be tailored to meet customer needs, such as offering seasonal products or those suitable for cyclical businesses. Customer data will be delivered consistently across all delivery channels ensuring accurate risk reporting and stronger regulatory compliance. The bank and the customer will be able to see a complete nancial picture, including accounts that are serviced outside the TCB system.

TCB for the implementation team

To best suit your banks needs and the projects risk prole, you can implement TCB in three ways: A  s a complete core banking system covering teller station to general ledger A  s a component-based system adding functionality, component by component to your existing infrastructure in a sequence to suit your needs A  s a financial institution framework including TCB modules into your own development project to reduce risk and to add proven core application capability

TCB for IT specialists

With TCB, IT specialists can choose the infrastructure model that best suits their banks current and future needs. Because TCB uses the latest platform-independent standards, IT specialists can minimise the total cost-of-ownership of the system and implement Service Oriented Architecture (SOA) immediately. And because TCB is platform-independent, it can be delivered on a classic IBM mainframe platform, a UNIX open platform that can be scaled to meet volume growth, or both allowing the best of both worlds.

TEMENOs CoreBanking

A global platform for the retail banking value chain

Achieving fastest time to market for new products

Traditional retail banking products are becoming more commoditised. At the same time, customers are calling for increasingly complex combinations of products and services. Some of the products that are now in demand could not have been imagined outside of the professional investor arena, let alone offered by retail banks over the Internet a decade ago. In reality, there is a dual need: A  need for commoditisation of traditional retail banking offerings A need for service personalisation To satisfy these needs, a retail bank must: D  esign, price and launch new products with a minimum lead-time D  istribute those products over the sales and delivery channels securely S  ell those products without having to give bank users extensive training To achieve each of these goals, TCB will: H  elp a banks employees design new products and get them to market quickly S  tore details of all bank products so they can be re-used as templates for new ones G  ive users complete control over the product development life cycle G  uide front office employees through the sales cycle and guide them when opening products for customers Capture complete customer information Cataloguing bank products TCBs product catalogue provides a single point of storage for all the banks nancial product offerings not just those wholly processed by TCB. The catalogue will accept characteristics of the banks entire product range including securities-based or insurance-based products and warehouse them in one central location. Storing nancial information that resides both in TCB and in other systems provides a complete view of the customers nancial relationships. In addition, the catalogue houses comparative data on competitors products, facilitating informative and interactive sales sessions.

Achieving operational efciency

Working effectively throughout the processing chain In addition to developing and selling products effectively, banks must also process the resulting transactions efciently. When TCB was designed, an original mandate was to help the founder banks achieve operational efciency. That mandate, which still holds true today, was to: Streamline back office processes Eliminate redundant data entry Reduce manual intervention as much as possible Reduce the number of printed reports wherever possible Achieve the most competitive cost per transaction Help banks improve key ratios, such as cost : income Helping the bank achieve benets from outsourcing TCB takes into account the fact that banks often outsource parts of the processing chain in their drive for efciency. So TCB makes sure new functions are easy to add, even if they are processed outside of the system. Because of TCBs structure, it can coexist with the plethora of systems that are typically present and integrate data from multiple sources into a cohesive whole. TCB has modules that make it easy to interface specialist third-party systems such as card management, investment management or insurance products to the core retail system. This ensures the bank can take advantage of third-party provision, but still incorporate relevant data within the core system. The concept of TCB working alongside other systems is also true during implementation. TCBs structure enables a component based implementation on a business line basis for example, for term deposits only, to reduce the risk and disruption caused by big-bang implementations.

Marketing and Management control

Collecting information along the way TCB is tri-centric. It looks at the relationships between: Customers Products Accounts The system records all data relating to those relationships and events. That information can be used to gain marketing insight and provide management and control.

TEMENOs CoreBanking

Marketing Insight The relationships between customer usage of products and their prole can be analysed. Marketing offers can be generated individually, based on a customers prole or transaction activity, or through specic campaigns. The results are available for followup and management review. Specic campaigns can be created and tracked at a specic branch, a group of branches, or bank-wide. TCB records employee incentives and attainment of objectives, the campaign budget and calendar, offer periods, promotions and media used. Management and control In addition to providing the audit data that a modern nancial institution would expect to be collected, TCB provides information for management in a multi-dimensional way. For example, TCB can not only provide data on protability, it can also answer a management query on the protability of a specied set of branches for consumer loans over a given period.

TEMENOs CoreBanking

An overview of TCBs internal architecture

TCB internal architecture
The TCB internal architecture consists of groups of related modules:

Enterprise Control Bank Organisation

Customer Customer Profile Financial Profile Product Product Builder Product Catalogue

Relationship Management Common Services

Settlement & Postings Alerts & Notifications Exception Processing Authorisations Documents

Deposits
DDA Savings Time Deposits

Lending
Commercial Consumer Real Estate Lines of Credit Letters of Credit

Payment Services
Sweeps Transfers Direct Debits Standing Orders

Operational Ledger Operational Data Store

Enterprise Control
These provide common applications used throughout several business events: Bank Organisation D  escribes all the internal organisation structure of the financial institution, branches and involved party  Maintains user access and authorisation levels  Maintains holidays and user profiles Customer Data Administration P  rovides data on all entities related to the financial institution including customers, prospects, employees and relationship managers  Provides grouping of related customers I ncludes properties for any entity (that several entities can share to avoid data duplication)  Includes a document management sub-system D  esignates special handling instructions or restricted access accounts

Product Builder and Catalogue  Enables users to create, modify and market products  Manages the life cycle of customer products  Provides product-build capability across all banking areas  Provides an audit trail of the product build process M  aintains a catalogue of all products, including how and where they can be sold and the documentation needed Relationship Management D  escribes the relationship between any party/product and the nancial institution (relating across all banking areas) I ndicates the status of the arrangement - for example, offered, requested, approved, active, matured, suspended or cancelled

TEMENOs CoreBanking

TCB infrastructure

Common Services
These provide common processing used throughout the business: Settlements & Posting Posts financial entries across all applications Alerts and Notications P  rovides intra-bank communications related to entities or arrangements Exception Processing P  rovides a single point where all non-posted items related to all applications can be managed Authorisations C  ontrols the flow of authorisation requests and resolutions between bank ofcers Documents  Enables the design and printing of any document from the system

Delivering modern-day industry standards

Technical standards for retail banking systems are few and far between. But the IBM Financial Services Data Model (FSDM) was specically created for the nancial services industry. This, together with its associated Information Framework (IFW), has become widely accepted by tier 1 retail banks. The original design of TCBs internal architecture was based around FSDM. The result is that TCB delivers the physical implementation of what the technical departments have been trying to achieve for the last few years.

Service Oriented Architecture

TCB is designed as a Service Oriented Architecture (SOA) in support of the co-existence interface requirements that are a necessity in the complex application architectures that have evolved within large Retail banks. However, more importantly, the re-usable discrete component design of TCB takes SOA signicantly beyond ease of integration to delivering agility and exibility whereby discrete functional components can be aggregated to create new products, services and processes easily and quickly. Todays next generation banks have realised - not unlike the evolution of the manufacturing industry - that signicantly improved quality, productivity and cost reduction can be achieved through re-using standardised proven components across multiple product lines and that the end products can be much more closely aligned to the needs of their customers.

Banking Products
Each set of business objects provides specic functionality to a line of business: Lending P  rovides specific lending functionality, including instruments such as loans, lines of credit, guarantees, mortgages and home equity loans Deposits P  rovides support for deposits and withdrawals, authorisation of overdrafts, nostro account management, cheque book or passbook issuance Payment Services I ncludes transfers, cheque truncation, direct debits and credits, teller receipts, clearing house operations

Using development best practices

TCBs structure allows a very high level of re-use of the business core logic and therefore enables a best practice approach. The internal application architecture of each module uses exactly the same structure. This provides a form of internal SOA that: Reduces total cost of ownership by reducing maintenance costs Simplifies development of new business processes Provides a common look and feel to each module

Providing exible, future-proofed infrastructures

Because TCB does not depend on one single hardware or software conguration, your bank can: C  hoose technology to suit each stage of the cost-versusnumber-of-users curve  Implement the system on the platform that best suits your internal skill set Temenos maintains only one set of development code which enables TCB to be deployed in multiple technological environments and easily adapts to different platforms. At a high level, there are three congurations currently available: A  traditional configuration based on IBM mainframes, with a software platform based on a Cobol host and a IBM DB2 database  An open system based on J2EE that provides a scalable solution across a wide range of hardware and software platforms (UNIX)

Management and Control

This sub-system provides nancial and management information: Operational Ledger P  rovides either a full corporate multi-bank, multi-currency general ledger or one that will provide balanced input to an enterprise-wide accounting system Operational Data Store  Provides information about the daily operational transactions Provides the ability to export the data as needed

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TEMENOs CoreBanking

Summary

TCB has been designed using industry-leading tools and technology. This has resulted in the development of best business practices and a system with extremely high levels of business logic re-use. This means TCB is functionally rich and can evolve to meet the new demands of todays sophisticated markets. Most importantly, Temenos is committed to taking the TCB product forward, through annual product releases to meet the changing demands and evolution of retail banks globally. TCB provides banks with a banking platform that can: D  esign, create and distribute new products rapidly through a true Product Builder Easily integrate with SOA and has flexible aggregation TCB offers: C  ommon Processes across lines of business, eliminating silos, redundancy and complexity I mmediate and direct access to extensive information through a single Denition of the Banks Data (based around FSDM) Proven scalability Global Continuous Processing for all functionality Platform neutrality

About Temenos
Founded in 1993 and listed on the Swiss Stock Exchange (SWX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private Wealth Management, Islamic and Micronance & Community banking markets. Headquartered in Geneva with 44 ofces worldwide, Temenos serves over 600 customers in more than 120 countries. Temenos software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos experience in over 600 implementations around the globe. Temenos advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efcient and low-risk core banking platform migrations. Temenos annually invests around 20% of revenues in R&D, signicantly more than its peers, into a single fully packaged upgradable software release, which ensures all Temenos customers benet from modern technology and support indenitely. For more information please visit www.temenos.com

Temenos Headquarters SA 18 Place des Philosophes CH-1205 Geneva Switzerland Tel: +41 22 708 1150 Fax: +41 22 708 1160 www.temenos.com

TEMENOS CoreBanking (referred to as TCB), TEMENOS , , are registered trademarks of the TEMENOS GROUP.
2007-2008 TEMENOS HEADQUARTERS SA all rights reserved. Warning: This document is protected by copyright law and international treaties. Unauthorised reproduction of this document, or any portion of it, may result in severe and criminal penalties, and will be prosecuted to the maximum extent possible under law. IBM 1994-2008, IBM Corporation. All rights reserved.