Temenos launches modular core banking tools for banks

Temenos has launched Composable Retail Deposits and Composable Retail Lending, aimed at banks seeking to modernise retail banking systems in stages.

The launches come as many lenders continue to run deposit and lending operations on older core platforms that are difficult to change and costly to upgrade.

Two products are designed as separate building blocks for deposits and lending, allowing banks to update one area without replacing the entire core system at once.

Core overhaul

The banking software provider said the products are cloud-native and connect with existing systems through application programming interfaces and event-driven links.

Each has its own deployment and upgrade cycle, which should limit knock-on disruption elsewhere in a bank’s technology estate.

The move reflects broader demand among banks for a more gradual route to replacing legacy technology. Rather than undertaking a full core overhaul in a single programme, some institutions are modernising selected functions first, particularly retail deposits and lending, which sit at the centre of day-to-day banking operations.

“Banks need to modernise from legacy systems to stay competitive, but they cannot afford disruption,” said Barb Morgan, Chief Product and Technology Officer at Temenos. “Our Composable Retail Deposits and Composable Retail Lending enable banks to upgrade critical core domains progressively without destabilising existing operations. It is a clear step forward in our composability strategy, focused on delivery, flexibility and customer value.”

Phased approach

Industry analysts have pointed to steady interest in modular approaches, particularly among larger banks, where the complexity of existing infrastructure can make a single large migration harder to execute.

“We see sustained appetite, particularly from large banks, for composable core solutions that enable incremental transformation,” said Bola Rotibi, Chief of Enterprise Research at CCS Insights. “Temenos’ composable approach reflects this reality, giving banks the option to upgrade one capability at a time, prove value, and expand from there as part of a phased modernisation strategy.”

Temenos said the products were developed with design partner clients including Raiffeisen Bank International. Their input was used to shape the products around the operational needs of banks running established core systems.

“Traditional core banking systems are slow to adapt to changing market demands or new technologies,” said Shyam Gopal Rajagopalan, Head of Operations Platform at Raiffeisen Bank International. “Upgrade cycles are often complex and disruptive, with impact extending well beyond the area being changed. The composable approach offered by Temenos provides an opportunity for banks like ours to take a more efficient and controlled path to core banking modernisation.”

Reliance deal

Separately, Temenos said Reliance Bank in the UK will adopt its software-as-a-service platform for core banking, digital banking and payments.

The bank, owned by The Salvation Army, plans to replace legacy systems as part of a broader technology overhaul aimed at improving efficiency and supporting deposit growth.

Reliance Bank serves retail and business customers and has a long-standing focus on ethical and community banking. It offers savings products for individuals, and current accounts, savings and loans for charities and small and medium-sized enterprises.

Under the agreement, the bank will use Temenos software delivered as a managed cloud service rather than operating the technology itself.

The arrangement includes access to its UK Model Bank configuration, intended to reflect local market requirements and reduce the need for additional software customisation.

Cloud platform

The bank is also expected to use Temenos’ architecture to connect with financial technology partners. That could support the lender as it seeks to broaden its customer base while updating the systems behind its current products and services.

“Implementing Temenos SaaS is a key element of Reliance Bank’s digital transformation strategy, providing a resilient, modern infrastructure that will support our growth plans,” said Nikki Fenton, CEO of Reliance Bank. “With Temenos, we’ll be able to scale efficiently and launch customer-centric digital solutions quickly, helping us to grow our deposit base and provide more financial support to charitable and ethical institutions.”

“We’re proud to partner with Reliance Bank on this strategic transformation, and support the bank’s mission to deliver a positive societal impact,” said Mark Yamin-Ali, Managing Director, Europe, at Temenos. “With its flexible, cloud-native architecture, broad functionality and pre-configured capabilities for the UK market, Temenos SaaS will help Reliance Bank to meet the needs of its specialist customer base with agility and speed. This agreement reflects Temenos’ proven ability to support institutions with specific requirements, as well as our strong track record and continued momentum in the UK.”