Temenos’ Business Analytics Solution Adopted by 50% of the Top 20 Largest Credit Unions in Canada
CENTRAL 1 FALL CONFERENCE & CREDIT UNION TRADE SHOW – VANCOUVER, Canada, November 6, 2012 /PRNewswire/ –
Temenos (SIX: TEMN), the global provider of banking software, today announces
significant growth in its Canadian operations, with nine deals signed for its Insight
Business Analytics solution in the past year, including new projects with Synergy Credit
Union and Innovation Credit Union, signed in September 2012. The two credit unions are
collaborating to share the same project framework for the implementation of Temenos
Insight, reducing the cost of the project and enabling greater savings for each credit
union. Synergy Credit Union estimates that with the newly acquired capabilities it will
increase its return on assets by 15 basis points per year – which would equate to an
annual uplift of $1.5M CDN in net profits.
Both credit unions originally sought Temenos Insight after learning of the success
experienced by Summerland Credit Union in British Columbia, which has already quantified
yearly staff cost savings of 16% for just one report produced using the Temenos Insight
Operational Intelligence module. With many Temenos customers running over 100 reports,
this saving typically equates to hundreds of thousands of dollars annually.
Temenos’ flexible ‘out of the box’ business analytics software, tightly integrated
with Microsoft Office components, supports banks and credit unions seeking new ways to
grow against a backdrop of increased competition in a tough economic landscape. As mergers
and acquisitions amongst Canadian credit unions become increasingly important to the
long-term survival of smaller institutions, many credit unions are seeking an easy way to
consolidate information and reporting through common technology platforms. The merged
entities can operate as one much more quickly with access to consolidated data, without
the need to do a full banking system conversion immediately.
Credit unions generate a high proportion of their revenues from net interest income,
where margins are shrinking as a result of pricing pressure and higher funding costs.
Consequently, higher levels of revenue diversification are needed, with credit unions now
starting to focus more on commercial banking, wealth management, leasing or credit cards
to drive new sources of revenue, especially high margin fee income, and spur growth.
Despite challenging economic and competitive conditions, some credit unions are still
experiencing success – Westminster Savings Credit Union achieved strong growth and
maintained its margins this year, and its Commercial Services division, which uses Temenos
Insight business tools, achieved double digit growth.
Temenos Insight provides a 360 degree view of the business across a financial
institution, including elements such as retail banking, wealth management, credit cards,
commercial, insurance and leasing, presenting the information in intuitive dashboards,
clear graphical visualisations and reports – ensuring rapid and flexible access to
information to make accurate, timely and profitable decisions. In addition, credit unions
come from a culture of sharing gains with their member-owners, something which is an
important competitive advantage and differentiator across the credit union industry.
Consequently, managing profitability is becoming an even greater imperative, with Temenos
Insight a key tool to help financial institutions understand and optimise the
profitability of their products and their relationships.
Synergy Credit Union and Innovation Credit Union are both existing Temenos clients,
each signed in the last quarter of 2011 for the Operational Intelligence module of the
Temenos Insight solution which helps decision makers to produce timely and flexible
operational reporting such as full product portfolio, channel and pricing analysis from
data automatically collected from the core banking system. The decision to extend this
relationship with the addition of further modules – Customer Intelligence, Financial
Intelligence and Insight Vision which help clients improve financial performance, increase
profitability, and organically grow their asset base – is the direct result of the quick
and efficient implementation of the original project.
Don Gemmell, Controller with Summerland Credit Union, said: “Temenos Insight Business
Analytics is a very important part of our operations. Because the tool is so easy to use,
it can be used productively by staff with very diverse needs. With just one of the reports
that we have recently automated using Temenos Insight, we’ve been able to quantify labour
cost savings of $7000 per year. In addition, we expect to generate significant savings in
time and money with our audits this year, as most of the information that auditors require
is now at their fingertips.”
Les Messmer, CEO, Synergy Credit Union, comments: “From the experience we have had
with Temenos Insight over the past year and the most recent modules we’ve acquired,
including Customer Intelligence and What-If pricing, we estimate that we can save at least
the cost of one full-time employee’s labour costs, and increase our profitability by up to
15 basis points relative to our asset size per year. This translates to approximately
$1.5M CDN uplift annually.”
Kent Jesse, Chief Innovation and People Officer, Innovation Credit Union, said: “We
are very excited to be part of Temenos’ strong Canadian user community. Temenos Insight
Business Analytics allows us to unleash the power of our data to make accurate, reliable
and profitable business decisions. Based on Microsoft technologies we already have, and a
wealth of out of the box reports and dashboards designed for credit unions, the solution
is extremely intuitive and easy to deploy. Temenos empowers every area of our
organisation, from finance, to marketing and branch operations, with the relevant
information for their role. Real-time access to information is no longer a nice to have,
but is instead a must have to be efficient, competitive and maximize the value we deliver
back to our members.”
David Arnott, CEO, Temenos says: “With Insight, banks and credit unions are able to
leverage their operational, risk and financial data and turn it into a distinct source of
competitive advantage. Banks and credit unions running Insight are able to analyse data
faster and more accurately, helping them to reduce the cost of analytics as well as take
more timely and better-informed decisions. In the post-crisis era, financial institutions
face many margin pressures, such as higher capital adequacy requirements, and analytics
will prove to be a key tool for increasing margins – in particular, by identifying the
markets and segments for successful expansion, and by giving banks the tools and
information to cross-sell more effectively and manage risk better, greatly increasing
their return on assets. We are excited by the results we are achieving together with our
Canadian customers and hope to take the software to a wider audience in North America.”
Temenos will be present at the Central 1 Fall Conference & Credit Union Trade Show in
Vancouver on the 7-9th November 2012.
Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN
Temenos Group AG is the market leading provider of banking software systems to retail,
corporate, universal, private, Islamic, microfinance and community banks, wealth managers,
and financial institutions. Headquartered in Geneva with more than 55 offices worldwide,
Temenos software is proven in over 1,500 customer deployments in more than 125 countries
across the world. Temenos’ products provide advanced technology and rich functionality,
incorporating best practice processes that leverage Temenos’ expertise around the globe.
Temenos customers are proven to be more profitable than their peers: in the period
2008-2010, Temenos customers enjoyed on average a 30% higher return on assets, a 46%
higher return on capital and an 8.5 percentage point lower cost/income ratio than banks
running legacy applications.
For more information please visit http://www.temenos.com.
Temenos contacts: Michael Golding Head of Communications Tel: +44(0)207-423-3751 Email: firstname.lastname@example.org Abigail Daniels Hotwire for Temenos Tel: +44(0)207-608-8364 Email: email@example.com