SACOMBANK Modernizes Core Banking with Temenos and IBM to Power 13 Million Daily Transactions

Sacombank has completed a major infrastructure overhaul, migrating its core banking operations from on-premises systems to a hybrid cloud environment. For fintech professionals, this move signals a critical shift in the Vietnamese market toward cloud-native architectures capable of handling high-volume retail and SME transaction loads while reducing the physical hardware footprint.

What was announced

Sacombank, a prominent commercial bank in Vietnam, has successfully gone live with the latest version of the Temenos Core Banking platform. This upgrade transitions the bank’s operations to a hybrid cloud model, utilizing Red Hat OpenShift and IBM Power infrastructure. The new environment is designed to support the bank’s extensive retail and SME banking divisions, which currently serve millions of customers and process approximately 13 million transactions every day.

The technical shift to a cloud-native core has yielded immediate performance metrics. The bank reports a 200% improvement in application performance and a 50% reduction in its server footprint. Furthermore, the new architecture has accelerated internal processes, resulting in deployment cycles that are now three times faster than under the previous on-premises setup. This agility is intended to support real-time banking services and data-driven innovation.

In addition to the core banking upgrade, Sacombank has selected the Temenos Payments Hub to manage its cross-border payment operations. This integration aims to unify the bank’s core functions and payment capabilities on a single, flexible platform, enhancing its ability to respond to the demands of the international financial landscape.

"The upgrade of our Temenos Core Banking platform is an important milestone in SACOMBANK’s digital transformation journey. With a scalable, high-performing and flexible foundation, we can accelerate innovation, deliver new services faster and continue providing secure, seamless banking experiences for our customers,"

Luu Danh Duc, Deputy CEO, SACOMBANK.

The companies involved

Sacombank is one of Vietnam’s leading commercial banks, maintaining a significant presence in the Southeast Asian retail and SME sectors. The bank has a long-standing relationship with its technology providers as it seeks to modernize its digital capabilities in a rapidly evolving regional market.

Temenos is a global provider of banking software, headquartered in Switzerland. The company specializes in cloud-native, API-first systems that allow financial institutions to scale their operations. In this deployment, Temenos worked alongside IBM and Red Hat. IBM provides the underlying Power infrastructure, designed for high-availability enterprise workloads, while Red Hat—an IBM subsidiary—provides the OpenShift container platform. Red Hat is a major player in open-source software, offering standardized environments for deploying applications across hybrid cloud architectures. Together, these entities represent a consortium of legacy hardware reliability and modern software flexibility, aimed at large-scale digital transformations within the banking industry.

What FF News has reported before

FF News has previously tracked the involvement of these technology providers in large-scale digital transformations. Recently, we covered how UniCredit Partners with Accenture and IBM to Launch Next-Gen European Banking Platform, highlighting IBM’s role in modernizing Tier-1 banking infrastructure. Our coverage of the broader shift toward scalable, cloud-native solutions also includes reports on how Taurus Unlocks Full Hedera Stack for 40+ Global Banks to Scale Digital Asset Tokenization and how SEI Partners With Zocks to Deliver AI-Native Workflow Automation for Financial Advisors. Additionally, we have noted executive movements in the sector, such as when BillingPlatform Appoints Three Key Executives to Drive AI-Native Growth and Market Scaling.

What this means

This announcement highlights the intensifying pressure on regional banks to abandon rigid, on-premises legacy systems in favor of hybrid cloud models. As transaction volumes in emerging markets like Vietnam skyrocket, the ability to process 13 million daily transactions while simultaneously reducing server overhead is no longer a luxury—it is a competitive necessity. The 200% performance gain reported here sets a high bar for other commercial banks in the APAC region. The industry is moving toward a standard where core banking and payments are no longer siloed, but integrated on a single cloud-native stack. This shift puts traditional infrastructure providers under pressure to prove they can offer the same agility as fintech-first challengers without compromising the stability required by national regulators.