Temenos and Alibaba Cloud announced that Temenos Transact, its core banking product is now certified on the public cloud offering.

The two companies will jointly help banks go to market faster, open up new business models, and achieve industry leading cost/income ratios. The two companies are already engaged in proof of concepts with banks and have joint customers in APAC.

Financial institutions will be able to run Temenos’ core banking applications on Alibaba Cloud and benefit from elastic scalability, cost and operational efficiencies.

The growing demand for cloud-based and SaaS models is being accelerated by the coronavirus pandemic as banks require more resilient and agile technology propositions. Cloud has become the established method of software deployment for smaller banks and neobanks that need to launch quickly with minimal IT infrastructure cost.

However, incumbent banks increasingly require cloud-native software to future-proof their business, gain greater speed to market as well as reduce IT complexity and costs.

Philip Barnett, Director, Strategic Growth, Temenos, said:

“We are delighted to extend our leadership in the cloud and be the first to certify with Alibaba Cloud, a tech giant and a source of innovation widely recognised for its leadership in e-commerce and mobile payments.

Working with Alibaba Cloud we will help banks to elastically scale based on demand and remove operational complexities. Together we can help new entrants launch faster with lower costs as well as large banks break down silos and collaborate internally and externally, and provide outstanding customer experiences.”