Whitney McDonald 10:16:53
Good day 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. As we speak is April 11 2024. Becoming a member of me is Rodrigo Silva. He’s the top of North America tech supplier terminos. He’s right here to debate cloud migration, together with find out how to choose a vendor find out how to strategy shifting to the cloud, and a few information on what banks are interested by the way forward for banking with regards to 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 12 months and a half in the past, and just lately obtained an prolonged function to steer our area for for the group. My background, I come from the business. I used to be for about 21 years at at Fiserv in a number of completely different roles primarily round gross sales and industrial 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 company, Temenos is as we speak the most important supplier of core banking purposes around the globe. We function round 3000 shoppers in about 150 international locations. We now have a market main expertise platform that caters to completely different segments of the marketplace for completely different industries, massive, small nice 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 companies, on sources, now we have numerous current shoppers on this area. And I’m very excited concerning 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 somewhat bit about your background. I’m excited right here as we speak we’ll be speaking about cloud migration. And naturally, along 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 shoppers? Is there nonetheless this huge push for cloud migration? What are what are you sort of following and listening to out of your shoppers? 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 all over the 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 research confirmed that about 51% of bankers consider banks is not going to personal any information heart in 5 years, as a result of they are going to be shifting a lot of the purposes to the general public cloud. That’s that’s extra so in North America than wherever else. We noticed out of the respondents that that 36% of banks are prioritizing, shifting 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 might change into a regulatory prerequisite within the subsequent 5 years, in comparison with about 60%. In Europe. So we positively see cloud migration as as a should. Our shoppers are, are contacting us shoppers which might be as we speak on on prem options, operating on their very own information facilities are shifting to the cloud, both their very own cloud suppliers or shifting to our SAS operation the place we handle the hyperscalers on behalf of our shoppers 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 somewhat bit what these conversations seem like when a consumer approaches Temenos and says, You already know what, I do wish 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 seem like?

Rodrigo Silva 10:21:33
It’s all about the advantages, proper that our shoppers will see with the cloud. And initially, what we have to perceive is the banking setting as we all know has modified. Proper? We now have demanding prospects which might be searching for companies 24/7 Um, now we 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 may have regulatory pressures out there, now we have very powerful nonetheless very powerful market circumstances with rates of interest being excessive. So all of that put pressures on the banks to change into extra progressive to vary the methods they’re doing issues. Additionally, you’re new efficiency metrics and efficiency drivers, proper innovation, buyer centricity, operational efficiencies, danger, compliance, synthetic intelligence, AI, is in all places. So so there’s loads of pressures within the banks to do issues in another way in rethink the way in which 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 may have, you may have loads of automation, inside inside the cloud world deployment velocity, the hyperscalers have invested so much 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 take a look at the wave of cost 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 might 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 shoppers wants, and actually future proof their expertise stack.

Whitney McDonald 10:23:48
Yeah, you simply talked by means of a couple of advantages. After all, the aggressive aspect, you talked about that fintechs are constructing on Cloud, they’re probably not having to do this raise. So from from the advantage of speaking by means of the advantages, and the necessity to keep aggressive, is unquestionably key right here. So perhaps we are able to speak about what these concerns are. There’s clearly the professionals that we simply talked by means of. But it surely’s not simply as simple as okay, we’re going to maneuver to the cloud now. So how do you actually take into account price? How do you take into account what it’s going to ivolve a time dedication? What does that sound like while you’re while you’re discussing that along with your shoppers?

Rodrigo Silva 10:24:24
Yeah, you’re completely proper. Proper. It’s it’s an entire 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, greater high quality, so So the nice establishments, the banks, they should be ready for it, be sure that they’ve the proper sources in place to tackle the world of cloud, additionally they must be sure that they’re working with with distributors with companions, they’ve a broad and deep set of cloud native banking capabilities. Identical similar requires that we simply talked about for the banks you may have 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, now we have expertise of working with 700 SAS shoppers as we speak, they’ve already migrated or began in our SAS setting. So huge scalability, proper, we’re a company that has been doing this for for a few years now. We now have each on premise shoppers and SAS shoppers, and in loads of our on prem shoppers 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 utility that day. That’s that’s cloud agnostic. So once more, deep expertise, understanding of the regulatory setting, understanding of the safety setting, 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 shoppers 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
A variety of the conversations that now we 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 sort of what you’re attempting to perform all line up. So yeah, that positively resonates. I do know that you simply additionally simply talked about tendonosis cloud agnostic So perhaps we are able to discuss somewhat bit extra about the place terminos matches in. So in case you have a consumer that as mu is shifting towards the cloud, what does that seem like 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 shoppers to the cloud. And what’s what’s fascinating and necessary about 10 minnows is that we weren’t solely speaking a few retail utility or company utility, we’re, we’re one single platform that works in all around the globe for various several types of shoppers, 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 forms of establishments, however we additionally work with completely different segments of the market. So one single platform that caters to retail, small enterprise, company personal wealth, now we have an finish to finish channel answer that does each the digital piece on-line banking, but additionally originations onboarding, now we have options for fraud monitoring AML. So funds hubs. So we, in all these options are cloud native, and in in cloud agnostic, that means that we may help our shoppers 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 is probably not prepared to maneuver your complete platform without delay. So with the way in which the structure works, you may transfer bits and items as as you you are feeling snug with. So perhaps you may have a method, you’re going to begin with the posits solely as MVP one and sooner or later begin shifting then your lending and your credit score merchandise into the cloud. So you may resolve what makes most sense. So you may you may take a look at you may really feel snug, you may see all the things that’s working. After which you can begin shifting in accordance with your your wants and your your danger urge for food. So on the finish of the day, you may have a accomplice in 10 Home windows that means that you can transfer not solely your core banking at your velocity and your need, but additionally transfer all the opposite platforms that assist the core and encompass the core into right into a core setting.

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

Rodrigo Silva 10:29:45
That’s completely right. So you may take your time. And relying on your small business technique and your danger 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 shoppers. I’m very lucky that in my function, I’ve an opportunity to talk with many banking executives and discuss 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 shortly 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 loads of belief in what now we have been in a position to present the market. And, and we’re seeing loads 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 by means of some advantages, we’ve seen the raise 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 way in which the banks devour expertise, proper? They’re shifting 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 arms of a of a vendor, proper, a company like like dominoes on a cloud setting. So we’re seeing them transfer increasingly 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 increasingly around the globe as properly. That took somewhat longer to adapt and to undertake that information. Name it the the SAS mannequin or simply placing With all that duty within the arms 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 information that may be out there within the cloud, as a result of cloud means that you can permits the scalability to essentially transfer super quantity of information in and in with the velocity and scalability that it’s essential, 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 greatest provide and the way they’re managing different points of their enterprise resembling danger 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 shifting into into the cloud setting and, and once more, with a vendor that has been doing that for some time.

Whitney McDonald 10:33:04
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Transcribed by https://otter.ai