Whitney McDonald 10:16:53
Hi there and welcome to The Buzz, a financial institution automation information podcast. My identify is Winnie McDonald and I’m the editor of financial institution automation Information. Right this moment is April 11 2024. Becoming a member of me is Rodrigo Silva. He’s the pinnacle of North America tech supplier terminos. He’s right here to debate cloud migration, together with the way to choose a vendor the way to method transferring to the cloud, and a few information on what banks are eager about the way forward for banking in terms of the cloud. Welcome to the buzzer. I’d be go.

Rodrigo Silva 10:17:18
Sounds good. Whitney, thanks. It’s nice to be right here. My identify is Rodrigo Silva. I’m the Regional Director for 10 minerals for the Americas. I joined Temenos, nearly a yr and a half in the past, and not too long ago acquired an prolonged function to guide our area for for the group. My background, I come from the trade. I used to be for about 21 years at at Fiserv in a number of totally different roles primarily round gross sales and business with main groups across the globe. My final function there was with the posit options, which is a big group primarily centered within the US. And as a corporation, Temenos is as we speak the biggest supplier of core banking purposes around the globe. We function round 3000 purchasers in about 150 international locations. We’ve a market main expertise platform that caters to totally different segments of the marketplace for totally different industries, massive, small high-quality establishments. And, and North America is a really strategic, or area for us, the place we’re investing in, in our product, in in expertise in our cloud providers, on sources, we now have numerous current purchasers on this area. And I’m very excited in regards to the alternative to be right here speaking to you and be main group on this territory.

Whitney McDonald 10:18:49
Nice. Nicely, thanks once more for being right here. And for sharing a bit of bit about your background. I’m excited right here as we speak we’ll be speaking about cloud migration. And naturally, together with your background and within the function that you simply’re in as we speak. I’m certain that it’ll be an amazing dialog. So with that, why don’t we simply begin right here with the place we stand as we speak with cloud migration? What are you listening to from financial institution purchasers? Is there nonetheless this large push for cloud migration? What are what are you form of following and listening to out of your purchasers? Yeah,

Rodrigo Silva 10:19:18
completely. So so with the there’s extra confidence than by no means proper? The general public clouds has has now a stronger presence in, in in every single place in banking, tons of funding by the hyperscalers. Financial institution see price reductions and innovation being key for for the banking world. These days, adopting cloud is a should. We we see future, the way forward for banking is within the cloud. Our newest economics economist impression examine confirmed that about 51% of bankers consider banks won’t personal any information middle in 5 years, as a result of they are going to be transferring a lot of the purposes to the general public cloud. That’s that’s extra so in North America than anyplace else. We noticed out of the respondents that that 36% of banks are prioritizing, transferring their home core banking to the cloud, in comparison with 26. Banks. globally. We additionally noticed that the 79% of North America respondents mentioned that multi cloud technique may turn out to be a regulatory prerequisite within the subsequent 5 years, in comparison with about 60%. In Europe. So we undoubtedly see cloud migration as as a should. Our purchasers are, are contacting us purchasers which can be as we speak on on prem options, operating on their very own information facilities are taking a look at transferring to the cloud, both their very own cloud suppliers or transferring to our SAS operation the place we handle the hyperscalers on behalf of our purchasers a

Whitney McDonald 10:21:09
couple of issues to interrupt down there, after all, nice stats, so thanks a lot for placing some numbers to it, however perhaps like a break down a bit of bit what these conversations appear to be when a consumer approaches Temenos and says, what, I do need to migrate to the cloud. What’s that the first step? After all, it’s it’s costly, and it may be a giant enterprise. So what are these conversations initially appear to be?

Rodrigo Silva 10:21:33
It’s all about the advantages, proper that our purchasers will see with the cloud. And at the beginning, what we have to perceive is the banking surroundings as we all know has modified. Proper? We’ve demanding clients which can be in search of providers 24/7 Um, we now have the rise of recent rivals, proper, you’re speaking about fintechs, you’re speaking about new banks, you’re speaking about bass suppliers, you’ve regulatory pressures available in the market, we now have very robust nonetheless very robust market circumstances with rates of interest being excessive. So all of that put pressures on the banks to turn out to be extra modern to alter the methods they’re doing issues. Additionally, you’re taking a look at new efficiency metrics and efficiency drivers, proper innovation, buyer centricity, operational efficiencies, threat, compliance, synthetic intelligence, AI, is in all places. So so there’s a number of pressures within the banks to do issues in a different way in rethink the best way they’re working as we speak. And cloud brings precisely that with Cloud, they’re going to see price efficiencies, they’re going to see and have the ability to present enhanced buyer expertise. They’re gonna have scalability benefits, adaptability benefits, you’ve, you’ve a number of automation, inside inside the cloud world deployment pace, the hyperscalers have invested lots in safety, enterprise agility. So once more, the cloud is the place the banks will have the ability to compete and thrive within the digital world. You have a look at the wave of fee suppliers and Neo banks on the market, and so they’re constructed from scratch on the most recent cloud expertise. And within the incumbent, which can be utilizing nonetheless these legacy methods that spaghetti methods as we joke, are, are actually not suited to to the calls for of this digital period. So so it’s fairly frankly, a race in opposition to obsolescence. The transfer to cloud will give the banks the agility, they should go to market with new merchandise and, and cater to their purchasers wants, and actually future proof their expertise stack.

Whitney McDonald 10:23:48
Yeah, you simply talked via a number of advantages. After all, the aggressive aspect, you talked about that fintechs are constructing on Cloud, they’re not likely having to try this elevate. So from from the advantage of speaking via the advantages, and the necessity to keep aggressive, is certainly key right here. So perhaps we are able to discuss what these issues are. There’s clearly the professionals that we simply talked via. But it surely’s not simply as straightforward as okay, we’re going to maneuver to the cloud now. So how do you actually think about price? How do you think about what it’s going to ivolve a time dedication? What does that sound like if you’re if you’re discussing that together with your purchasers?

Rodrigo Silva 10:24:24
Yeah, you’re completely proper. Proper. It’s it’s a whole shift to a brand new set of various practices. You’re speaking about automated testing, design, a extra of a buyer centricity mannequin, that the necessity for accelerated manufacturing environments, shorter supply cycles, larger high quality, so So the high-quality establishments, the banks, they have to be ready for it, ensure that they’ve the suitable sources in place to tackle the world of cloud, in addition they must ensure that they’re working with with distributors with companions, they’ve a broad and deep set of cloud native banking capabilities. Similar identical requires that we simply talked about for the banks you’ve internally with their very own sources, it’s best to anticipate that out of your distributors and out of your companions, proper. So having having confirmed cloud supply confirmed is scalability, confirmed migration credentials expertise doing so. So after I look internally at 10, home windows, proper, we now have expertise of working with 700 SAS purchasers as we speak, they’ve already migrated or began in our SAS surroundings. So huge scalability, proper, we’re a corporation that has been doing this for for a few years now. We’ve each on premise purchasers and SAS purchasers, and in a number of our on prem purchasers is X have really applied the our purposes on their very own cloud suppliers, proper, that being AWS, or your or, or what have you ever, as a result of we’re an software that day. That’s that’s cloud agnostic. So once more, deep expertise, understanding of the regulatory surroundings, understanding of the safety surroundings, ensuring that you simply’re compliant, and having a few years in our case, 30 years working with with financial institution IP is important for, for our purchasers to to achieve success. And they need to be contemplating all of that once they’re making their transfer to the cloud.

Whitney McDonald 10:26:28
Numerous the conversations that we now have is about that vetting course of and ensuring that the distributors that you simply do choose have those self same, whether or not it’s safety and even simply values and form of what you’re attempting to perform all line up. So yeah, that undoubtedly resonates. I do know that you simply additionally simply talked about tendonosis cloud agnostic So perhaps we are able to speak a bit of bit extra about the place terminos matches in. So when you have a consumer that as mu is transferring towards the cloud, what does that appear to be for terminos? How do you guys assist alongside that journey? Yeah,

Rodrigo Silva 10:27:01
completely. So we’ve been on that journey for for a few years, and evolving our cloud. Providing for a few years, we have been one of many pioneers to maneuver core banking and our purchasers to the cloud. And what’s what’s attention-grabbing and necessary about 10 minnows is that we weren’t solely speaking a couple of retail software or company software, we’re, we’re one single platform that works in all around the globe for various various kinds of purchasers, these being small for establishments, massive completed tuitions, credit score unions, neobanks, Challenger banks. And we not solely, not solely we work with a number of kinds of establishments, however we additionally work with totally different segments of the market. So one single platform that caters to retail, small enterprise, company personal wealth, we now have an finish to finish channel resolution that does each the digital piece on-line banking, but additionally originations onboarding, we now have options for fraud monitoring AML. So funds hubs. So we, in all these options are cloud native, and in in cloud agnostic, which means that we might help our purchasers in that journey into the cloud, not solely with their core, but additionally with these additionally supporting options that revolve across the core. And the composability of our purposes is essential, as a result of when a consumer is testing the waters with the cloud, they will not be keen to maneuver your entire platform directly. So with the best way the structure works, you may transfer bits and items as as you you’re feeling snug with. So perhaps you’ve a technique, you’re going to begin with the posits solely as MVP one and sooner or later begin transferring then your lending and your credit score merchandise into the cloud. So you may resolve what makes most sense. So you may you may check you may really feel snug, you may see all the pieces that’s working. After which you can begin transferring in accordance with your your wants and your your threat urge for food. So on the finish of the day, you’ve a companion in 10 Home windows that permits you to transfer not solely your core banking at your pace and your want, but additionally transfer all the opposite platforms that help the core and encompass the core into right into a core surroundings.

Whitney McDonald 10:29:30
Which makes it much less daunting, proper? You don’t must do it suddenly you may form of do it piece by piece and see the way it works after which decide okay, what’s the following piece that we must always transfer over? You don’t must do it multi functional fell swoop.

Rodrigo Silva 10:29:45
That’s completely appropriate. So you may take your time. And relying on your small business technique and your threat urge for food, and the way snug you might be with the transfer, you may resolve which items to maneuver first. And once more, that’s these are the kind of conversations that we like to have with purchasers. I’m very lucky that in my function, I’ve an opportunity to talk with many banking executives and speak to them and with them about, you already know, what are their urge for food to maneuver to cloud? And we confirmed some stats earlier on it, everybody’s speaking about it. And the query is, how rapidly can we transfer? And what ought to we transfer first? And who’re we going to be working with and we’re glad to see that there’s a number of belief in what we now have been in a position to present the market. And, and we’re seeing a number of curiosity in, on this transfer.

Whitney McDonald 10:30:32
So we’ve been seeing or following alongside this cloud migration journey. For fairly a while. We talked via some advantages, we’ve seen the elevate and shift. However what do you assume is subsequent inside this cloud banking mannequin? How is that this cloud migration evolution altering? What are you expecting? What’s subsequent in your perspective?

Rodrigo Silva 10:30:56
Yeah, so what we’re seeing is the market is altering. And so is the best way the banks devour expertise, proper? They’re transferring to SAS, we finish with a SaaS providing, you might be principally allocating all these high quality, the obligations round managing the infrastructure, managing the safety, the the monitoring the daily operations, the shut of enterprise, the updates the upgrades, placing that within the palms of a of a vendor, proper, a corporation like like dominoes on a cloud surroundings. So we’re seeing them transfer an increasing number of that could be very, it’s a mannequin that has been in place, particularly in North America for a few years. However we’re seeing that an increasing number of around the globe as effectively. That took a bit of longer to adapt and to undertake that information. Name it the the SAS mannequin or simply placing With all that duty within the palms of a vendor, now, what we’re seeing as the following wave is, is de facto is Cloud Analytics, proper the quantity of name it what the banks can do with all the info that may be out there within the cloud, as a result of cloud permits you to permits the scalability to essentially transfer super quantity of information in and in with the pace and scalability that it’s essential to, to have the ability to handle that. And with with Cloud Analytics, banks will have the ability to to have actual time perception into buyer behaviors, market tendencies. And that’s tremendous necessary as they’re launching their new merchandise and their subsequent finest supply and the way they’re managing different features of their enterprise similar to threat profiling, Fraud Administration, so on and so forth. So So with a extremely scalable, says mannequin, along with a sturdy localization and native operations, proper, the banks can really feel snug on transferring into into the cloud surroundings and, and once more, with a vendor that has been doing that for some time.

Whitney McDonald 10:33:04
You’ve been listening to the thrill, a financial institution automation information podcast, please observe us on LinkedIn. And as a reminder, you may charge this podcast in your platform of selection. Thanks in your time, and you should definitely go to us at Financial institution automation information.com For extra automation information,

Transcribed by https://otter.ai