Temenos Launches Data Lake to Fuel Next-Generation AI-Driven Banking Applications
Temenos , the banking software company, launched Temenos Data Lake and is first to market with a robust, productized data lake that integrates big data analytics into its banking software. Temenos Data Lake delivers out-of-the box data integration, preparation and optimization to power AI-driven banking applications.
Banks require a robust big data and advanced analytics capability to compete with the analytically driven new market entrants. Banks struggle with the ingestion, cleansing, blending, and optimization of data to prepare it for analytics and AI applications. Many banks are attempting to build internal data lakes to solve these issues with high costs and high failure rates. With Temenos Data Lake banks can now store and process all the data they need to power smarter applications from a single source and achieve higher performance at a very low TCO as opposed to building data lakes in-house, which is costly with high development and integration risks.
Temenos Data Lake is part of the market-leading Temenos Analytics product which is embedded into cloud-native, cloud-agnostic Temenos Infinity and Temenos T24 Transact. Temenos Data Lake supports multiple underlying database and processing platforms including Apache Hadoop and is also pre- integrated with NuoDB, the enterprise-class, distributed, cloud and container native database, offering banks combined Temenos core banking and analytics functionality on a single database architecture. This dramatically accelerates deployment, eliminates complexity and removes integration costs.
Temenos Data Lake has a robust set of data engineering tools, allowing banks to blend and enrich Temenos source data with other data sources, including unstructured data. Data engineering workloads leverage the Apache Spark in-memory processing engine which is the leading platform for large-scale SQL, batch processing, stream processing, and machine learning. Temenos Data Lake can be deployed as an enterprise data lake or as a point solution, embedded within the Temenos banking software products. Temenos Data Lake is available on premise and on cloud and is currently live at eight banks integrated with Temenos T24 Transact as well as third party core banking solutions.
Banks recognize the value of their data as they seek to personalize customer engagement, improve fraud detection, and mitigate risk. Temenos Data Lake enables banks to meet strategic digital banking priorities, like establishing a real-time 360 customer view, using micro-segmentation to map products and services to appropriate customers and interacting with them in real time to drive revenue growth. For example, by embedding Temenos Data Lake into Temenos Infinity, banks leverage multiple customer data sources, including unstructured data, to gain valuable insights into customer behaviour and preferences. With Temenos Data Lake, banks can also power AI-based applications to tailor recommendations to each customer and offer contextualized advice.
In the risk and regulatory space, Temenos Data Lake offers a centralized data lake with pre-prepared data models, populated by complete, accurate and timely data that’s available in real time and on-demand. Integrated metadata management tools accelerate compliance with legislation such as BCBS 239, which continues to present an onerous challenge for banks. Temenos Data Lake alleviates the need for banks to engage in lengthy and expensive data integration projects, with a potential reduction in risk and compliance costs of up to 80%.
To accelerate Temenos’ data and analytics strategy, Temenos purchased hTrunk, a fast-growing provider of big data and analytics solutions. Founded in 2015, hTrunk is a company based in Bangalore India, providing big data and analytics solutions, mainly to financial services institutions. hTrunk’s technology and research and development teams are being integrated with the Temenos Analytics product teams.
Fred Cook, Chief Information Officer at BlueShore Financial, said: “Temenos Analytics is mission critical for us in executing our unique strategy and differentiating our value proposition. The ability to integrate and combine many types of data is essential to gaining full business insights. The use of Temenos Analytics has enabled us to surgically execute our strategy, by defining customer micro-segments and tailoring our products and services specifically for these segments. This has led to an increase of 138% of assets under management over 8 years. Temenos Data Lake along with their and the integrated data engineering and analytics tools will help us continue this aggressive growth strategy. We will now be able to blend traditional structured banking data with unstructured data such as social and voice, allowing us to find new, untapped, market opportunities.”
Martin Stiller, Analyst at IDC Financial Insights, said: “‘Business and IT leaders are overwhelmed by the sheer volume and variety of data at their disposal, and the cost of managing all this business intelligence. Fragmented access to enterprise data also creates a major barrier in building connected financial services. Internally aggregated data enriched by second / third party data is going to be crucial to start offering personalized services at scale. Temenos’ Data Lake announcement brings more innovation to this market and gives banks more options to consider as they decide on their approach to leveraging big data to enhance their business.”
Max Chuard, Chief Executive Officer, Temenos, said: “Many banks are attempting to build data lakes to support their digital banking and regulatory and compliance initiatives. However, the cost and risk of development and integration are very high. Temenos Data Lake provides a productized, banking specific, solution which is embedded into the cloud-native, cloud-agnostic Temenos Infinity and Temenos T24 Transact products and it also successfully integrates with third party core banking products. This dramatically accelerates delivery and lowers costs.
By combining Temenos’ 25 years of innovation building world-class packaged banking software with the latest advancements in big data and analytics, we provide banks the foundational technologies to help them realize the power of data, analytics, and AI to transform their business.”