Core banking modernisation is at the forefront of a lot of conversations in the boardroom within smaller financial institutions.  For the tier-one banks the sheer level of investment in in-house written applications tailored to the specific business demands means that adopting agile development methodologies, moving to the API economy and modernizing what they have is strategic the way to go.  However, for the smaller Tier 3, 4 and 5 banks then a Commercial-Off-The-Shelf (COTS) application is certainly the prevalent choice. Temenos is the market leader in this COTS core banking space… with over 3,000 firms across the globe, relying on Temenos to process the daily transactions of more than 500 million banking customers.

Temenos T24 is a rich modular core banking platform supporting various retail and commercial banking services including wealth, Islamic and payments requirements. The T24 solution offers full end-to-end Banking channels integrated with back office reconciliation services and analytics…

But this is the mainframedebate.com blog… so why am I talking about Core Banking Transformation and favouring Temenos in the process???

Great question, glad you asked!!!

You may have seen Chester Gorski from Techcombank present at THINK 2018 recently in Las Vegas for those who didn’t check out this YouTube video here – in summary Techcombank have chosen LinuxONE to deploy their Temenos T24 core banking system.  As part of this project IBM is forging ahead with a technical relationship with Temenos.  As part of the burgeoning relationship IBM recently completed a benchmark of the T24 application on LinuxONE.

The functional results of the benchmark demonstrated the co-located benefits of running both application and database instances on the same enterprise class Linux server, LinuxONE.  The highlights of the benchmark were:

  • The reduction of network and virtualisation services reduced I/O and CPU demands and increased the security, resilience and data integrity of the transactions.
  • The performance results for Online workloads showed greater transactions throughput per core, per JVM or per thread than other platforms. Peak volume workloads showed a near 100% utilisation of cores and significant TCO savings
  • Batch workloads showed far greater throughput and reduced elapsed/wait times for both End-of-Day and End-of-Month batch suites
  • Security overhead was minimal given that full dataset encryption secured all data within the system. Firmware based encryption removes the need for costly application or database encryption
  • Higher throughput, lower latency and greater performance realises a reduction of CPU’s between 4:1 (LinuxONE v x86 cores) for CPU intensive workloads to 12:1 for batch or I/O bound workloads
  • End of Month processing for 34m accounts processed in 2hrs33mins using 24 x IFL’s SMT-2 for application and 24 x IFL’s SMT-2 for database server = 48 x IFLs, average 60% CPU utilisation

Summary

The IBM LinuxONE platform provides an enterprise class server platform for hosting the Temenos T24 core banking application, and the the benchmark specifically demonstrated:

  1. Strong functional capabilities across a range of Retail Banking services.
  2. High performance results given a variety of transaction workload profiles from low to high volume online, batch and specific package (e.g. payroll) workloads
  3. Encryption testing showed minimal overhead in maintaining encrypted data volumes throughout the transaction executions, providing a baseline for regulatory support and compliance

IBM and Temenos are working closely together to support new and existing clients adopt the use of LinuxONE as their preferred Enterprise platform and it has been added to the supported RedHat Stack options for T24 R18 and beyond. The Temenos support team have updated their workload configuration tools to size any potential workload and IBM is developing several package bundles of components and options including servers, CPU’s, memory, storage and middleware to support this core banking offering.

So if you want to copy the likes of Chester Gorski and the team at Techcombank, and soon to be many others, then look no further for your core banking platform, there really is only ONE choice, LinuxONE…