Abstract
Banks are under growing pressure to modernize legacy systems without compromising on security, scalability, or compliance. Temenos, IBM, and Tech Mahindra jointly deliver a hybrid cloud-ready, containerized solution for core banking and payments, leveraging IBM LinuxONE, Red Hat OpenShift, and Temenos applications to provide high availability, cost efficiency, and regulatory resilience.
Get critical insights into the trends, challenges, and solutions shaping the future of banking
Key Takeaways
The paper strongly advocates against a "big bang" overhaul of core banking systems. Instead, it promotes a progressive, multi-year journey using a hybrid cloud strategy. This allows banks to modernize gradually by extending, renewing, or reinventing services at their own pace. The proposed two-stage approach—a technical upgrade and containerization first, followed by a functional upgrade—is designed to create a stable foundation, minimize disruption, and align transformation with the bank's operational maturity.
The core of the proposal is a specific, synergistic technology stack designed for mission-critical banking. Temenos provides the core banking and payments applications (Transact, Payment Hub). IBM LinuxONE serves as a secure, high-performance, and energy-efficient hardware platform. Red Hat OpenShift provides the containerized, hybrid cloud orchestration layer, enabling agility and modern CI/CD practices. This integrated solution is presented as the ideal foundation for achieving security, scalability, and resilience.
The whitepaper frames the transformation as a move from "Total Cost of Ownership" to "Total Cost of Optimization." The benefits extend beyond simply updating software. The solution aims to enhance operational efficiency through automation (IaC), strengthen security with features like confidential computing, ensure high availability and disaster recovery, and meet sustainability goals through energy-efficient infrastructure. Ultimately, this allows banks to accelerate innovation, meet regulatory demands, and improve customer experience.
A central theme is that successful transformation requires more than just technology; it demands deep expertise in implementation. The document highlights the value of the partnership between Temenos (the software vendor), IBM (the platform provider), and Tech Mahindra (the systems integrator). Tech Mahindra's proven experience with over 100 Temenos upgrade programs is positioned as a key factor in de-risking the complex migration process and ensuring a smooth, confident transition for the bank.
