Texnikabank selects Temenos T24 Model Bank to replace its core systems

GENEVA, Switzerland - 11 November 2008 - Temenos (SWX: TEMN), the provider of integrated core banking systems, today announced that Texnikabank, one of the largest universal banks in Azerbaijan, has selected TEMENOS T24 (T24) to replace a number of its core banking systems to support the bank’s retail and corporate operations. Using T24, the bank will consolidate all of its disparate systems into one centralised infrastructure to fully automate all business processes across these operations. T24 will be rolled out across the bank’s 35 branches.

The bank required a modern, functionally rich, international core banking system to replace its existing, locally developed and in house legacy systems, which can no longer support the expanding operational and product requirements of the bank. Texnikabank opted for T24 Model Bank for Universal Banking, which includes preconfigured products and processes based on banking best practice to reduce implementation time and costs, minimise customisation and lower the project risk. T24 will enable the bank to quickly and efficiently develop and deliver modern, innovative products and superior service to its customer base, thereby improving the customer experience, retention and growth.

Khaqani Guluzade, First Deputy Chairman of the Executive Board, Texnikabank, says: “Advanced core banking technology is vital to achieve business growth and improve customer service. We recognised the need to implement an international business banking system that would enable us to compete more effectively in today’s market; we selected Temenos based on its core banking expertise and leading reputation in Azerbaijan. With T24 we will consolidate the disparate systems within the bank, obtain more control over business processes and significantly improve operational efficiency. T24 will also enable us to create and launch innovative products quickly, which is key for our customer satisfaction and growth.”

Texnikabank also selected TEMENOS ARC, to enable the bank to offer tailored services and products to its customers across multiple channels, eliminating complex and expensive integration efforts of multiple systems and ensuring a truly customer centric solution is in place. In addition, the bank chose TEMENOS T-Risk (T-Risk), also fully integrated with T24, which will provide Texnikabank with improved enterprise risk management and regulatory reporting capabilities including Basel II reporting During a rigorous evaluation process the bank considered other suppliers including i-flex and Fidelity before signing the deal with Temenos in June 2008. The bank has opted for a phased implementation approach, with the first phase expected to go live in Q2 2009 and the final phase three months later. T24 will run on E520 IBM servers with an Oracle database. A joint implementation team is managing the roll out of the T24 Model Bank.

Andreas Andreades, CEO, Temenos, comments: “This deal confirms our success in the region as the core banking supplier of choice for major banks in Azerbaijan. Our T24 Model Bank is very attractive to banks as it delivers an ‘out-of-the box’ core banking system complete with international best banking processes and complies with local requirements. Banks usually replace a large number of different systems with T24 to streamline their operations. Through Temenos’ continued substantial R&D commitment to our products we enable banks to future proof their businesses from the fast pace of technological change for the years to come”.

T24 Model bank is a packaged core banking software that provides banks with unparalleled richness in functionality on an integrated, service orientated architecture with support from front to back office. T24 Model Bank includes pre-configured, industry best practices for each banking sector, enabling banks to optimize operations and processes while remaining agile, flexible and responsive to business change. Its highly automated implementation approach delivers short implementations with a rapid and measurable return on investment. Fully integrated CRM and business intelligence capabilities provide a high degree of customer intimacy and a clear and deep understanding of the enterprise including its risk and performance. Its scalability, as underlined by recently reported Temenos/IBM performance tests, means T24 is capable of servicing of banks ranging from small to up to 25million accounts.

T24 incorporates modern technology including a comprehensive Service Orientated Architecture (SOA). It’s also fully enabled for standard SOAP (Simple Object Access Protocol) web services, and BPEL process execution. T24 is compliant with industry leading ESBs (Enterprise Service Buses) and can be deployed on fully scalable, multiserver n-tier architecture. It provides a full front-to-back solution from electronic delivery channels such as mobile devices and internet banking right through to settlement, general ledger and other back office functions. This is delivered in a fully integrated, reliable and cost effective environment. Temenos’ total commitment to open standards enables its customers to benefit from the latest advances in technology ensuring business agility, continuity, data integrity and reduced downtime delivering a significant, immediate and ongoing return on investment.

About Texnikabank
Tehnikabank is one of Azerbaijan’s private commercial banks founded in 1992, with assets exceeding USD 500 million, loan portfolio above USD 350 million, equity and reserves circa USD 61 million. The target audience of Texnikabank are physical entities, small and medium-sized enterprises – residents of Azerbaijan. The Bank has 35 branches and 2 bureaus in Baku and other cities across the country, as well as 48 ATM’s.

About Temenos
Founded in 1993 and listed on the Swiss Stock Exchange (SWX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 44 offices worldwide, Temenos serves over 600 customers in more than 120 countries. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. Temenos’ advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations. Temenos annually invests around 20% in R&D, significantly more than its peers, into a single fully packaged upgradeable software release, which ensures all Temenos customers benefit from modern technology and support indefinitely.