The new study suggests that two vendors, one being Temenos, are set to continue to dominate the core banking technology market, as smaller rivals fall by the wayside and banks take a cautious approach to vendor selection in a consolidating market.
The survey found that Temenos was able to, âstabilise its success on the level of 2007, whereas other vendors participating in both the 2007 and 2008 surveys showed fewer deals in 2008â.
The report also suggests that the ongoing economic crisis is likely to accelerate an emergent trend towards consolidation among core banking vendors. As the weaker performers are picked off by the dominant players, the big are likely to get bigger and a smaller number of banking platform vendors will start to dominate the market even more so than today.
Andreas Andreades, CEO, Temenos, comments: âThis survey underscores our strong position in the core banking market as we continue to lead in the rankings and outperform the competition. With 15 years of experience in this industry, our Model Bank offering leads the market with its built in best practices across many sectors and geographies. As a result, we are in the strongest position to address the international and local needs of more than 700 banks across the world. By securing strong revenues year on year, we are able to ensure a high rate of investment in product development ahead of our peers, thus outperforming the market and maintaining our competitive position.â
Temenos focuses 100% of its resources on banking software and continues to supply core banking systems to all geographies across a wide variety of banking sectors and institutions. 2008 was a strong year for Temenos, in which it enjoyed high end deal signings including JP Morgan Chase, continued to sign clients in new countries, including Banco Ficohsa in Honduras, The Popular Association for Savings and Loans (APAP) in the Dominican Republic and Bancoldex in Colombia and entered into new vertical markets, including a deal signing with UK based clearing house LCH.Clearnet. It also enjoyed growth in existing territories, securing new deals with Honda Bank GmbH in Germany, Swedbank in Finland and Sacombank in Vietnam. 2008 saw an increasing number of large scale retail operations deploy T24, including the Bank of Shanghai, which is now using the software to support 13million accounts across its 245 branches.