Temenos launches Composable Retail Deposits and Composable Retail Lending to Enable Progressive Core Modernization

WHY THIS MATTERS: The global struggle with legacy IT systems has long centered on the high cost and catastrophic risk of “big bang” core banking replacement. This launch from Temenos is a significant pivot in that narrative, validating the industry-wide move toward composable architecture. For decades, banks have been locked into monolithic platforms that prevent them from swiftly adapting to new customer demands or integrating with specialist fintechs. By offering separate, cloud-native components for essential functions like deposits and lending, Temenos is dismantling the complexity barrier. This progressive modernization approach is not just a safer route; it allows institutions to prioritize incremental improvements, prove immediate ROI, and build a more flexible digital foundation today. This marks the democratization of core transformation, making it accessible even for risk-averse institutions.

Temenos (SIX: TEMN), a global leader in banking technology, today launched Composable Retail Deposits and Composable Retail Lending, new Temenos Composable Solutions designed to help banks progressively modernize key retail banking domains, reducing risk while accelerating change.

Retail deposits and lending sit at the heart of a bank’s operating model, yet many are still constrained by legacy platforms that are slow to change, costly to upgrade and difficult to integrate with new technologies. As customer expectations, competitive pressures and regulatory demands increase, banks need more flexible ways to modernise these domains.

Temenos’ Composable Retail Deposits and Composable Retail Lending are cloud-native, standalone capabilities that integrate into a bank’s existing technology landscape through APIs and event‑driven connections. Each capability is independent, with clear functional boundaries and its own deployment and upgrade cycle, ensuring that changes in one area do not ripple across other systems.

Together, these capabilities enable banks to modernize deposits and lending progressively, improve speed to market and reduce the risk and disruption typically associated with traditional core upgrades.

Barb Morgan, Chief Product and Technology Officer, Temenos, said: “Banks need to modernize from legacy systems to stay competitive, but they cannot afford disruption. Our Composable Retail Deposits and Composable Retail Lending enable banks to upgrade critical core domains progressively without destabilizing existing operations. It is a clear step forward in our composability strategy, focused on delivery, flexibility and customer value.”

Bola Rotibi, Chief of Enterprise Research, CCS Insights, commented:“We see sustained appetite, particularly from large banks, for composable core solutions that enable incremental transformation. Temenos’ composable approach reflects this reality, giving banks the option to upgrade one capability at a time, prove value, and expand from there as part of a phased modernization strategy.”

Temenos’ composable deposit and lending solutions were developed in collaboration with Design Partner clients, including Raiffeisen Bank International, supporting product development in line with real-world banking needs.

Shyam Gopal Rajagopalan, Head of Operations Platform, Raiffeisen Bank International, added: “Traditional core banking systems are slow to adapt to changing market demands or new technologies. Upgrade cycles are often complex and disruptive, with impact extending well beyond the area being changed. The composable approach offered by Temenos provides an opportunity for banks like ours to take a more efficient and controlled path to core banking modernization.”

FF NEWS TAKE: This announcement is a definitive indicator that core banking modernization has entered its next phase: incremental, manageable transformation. The true measure of success for Temenos will be the demonstrable ease with which these new, discrete capabilities integrate seamlessly with a bank’s existing non-Temenos infrastructure. This solution moves the needle by de-risking a critical, multi-year process. We are now watching for major global banks to publish tangible results from deploying these deposits and lending modules in production environments.