Architecture of a New Era

• Advantages of the monolith: unified system, centralized management for all modules
• Disadvantages of the monolith: lack of flexibility and major challenges in integrating with modern solutions. Introducing new features required local modifications, updating individual modules was complex, regression testing was time-consuming, and end-of-day processing was lengthy.

Temenos replaced TAFC (Temenos Application Framework for C) with TAFJ (Temenos Application Framework for Java) to provide a more modern, flexible, and scalable Java-based solution. The main reasons for this change include:

• Increased flexibility and compatibility: Java, as a platform-independent language, enables applications to run on different operating systems without the need to adjust the code.
• Scalability and efficiency: TAFJ offers greater scalability, which is essential for large banks and financial institutions.
• Modern tools: Java provides a richer set of tools and libraries for building business applications
• Improved cloud integration: The transition to TAFJ made it easier to integrate with the cloud and deploy applications in cloud environments.
  

In response to the growing demands of the financial and technology sectors, Temenos began developing solutions that support operations within a Service-Oriented Architecture (SOA). In this model, individual functions were gradually separated into independent services.

• Service distribution: Each banking function started to operate as a
  separate module.
• APIs: Services were integrated through APIs, which
  simplified communication between systems.
• Benefits: Improved flexibility and easier integration with
  other systems.
  

The next step in the evolution of the T24/Transact system was the adoption of a microservices architecture. This allowed each service to operate independently and be deployed, scaled, and updated without impacting other parts of the system.

• Microservices: Small, dedicated applications performing
  specific functions.
• Containerization: Temenos began using containerization
  technologies (e.g., Docker, Kubernetes).
• Data management: In the microservices model, individual
  components could have their own databases.
  

Over time, APIs became a key component of the T24/Transact system architecture, enabling banks to easily connect with external applications and financial service providers.

• Open APIs: Temenos made its APIs publicly available,
  allowing the creation of new services built on top of banking systems.
• FinTech integration: Thanks to APIs, Temenos systems could seamlessly
  integrate with modern fintech solutions.
  

With the development of cloud technologies, Temenos began offering its solutions as SaaS (Software as a Service). Banks could deploy core banking systems in the cloud, significantly reducing infrastructure costs.

• Temenos SaaS: Delivering banking systems as cloud-based
  services allowed faster deployment of new features.
• Flexible scalability: The cloud enabled banks to scale services
  according to current needs.
• Security and compliance: Temenos ensured regulatory compliance and high security standards within the cloud model.
  

• Composable architecture: Banks can build their own ecosystems by
  selecting only the components they require.
• Agility and flexibility: Thanks to the microservices and API-based
  approach, banks can quickly adapt to changing market conditions.

Recently, we reached a significant milestone by deploying the latest version of Transact R24 in our rCloud AWS environment, in accordance with AWS Well-Architected principles. We strategically split the system into two components:

• Standard banking subsystems running on EKS EC2 instances.
• Batch processing subsystems running on Fargate.

This approach aims to reduce costs, increase system resilience, and shorten startup times. Moreover, it differs from the Temenos approach, which supports configurations exclusively on either EC2 or Fargate. Our setup allows us to experiment with various configurations not originally envisioned by Temenos, helping us identify which ones best meet our needs.

In our pursuit of continuous improvement, we plan to build a CI/CD pipeline leveraging our existing infrastructure, such as internal JFrog repositories. This pipeline will automatically rebuild images and deploy them to AWS as soon as new updates from Temenos become available—ensuring we always deliver the latest system versions.

Once the system is fully stabilized, we intend to make this environment available on-demand to other network units.

Our innovation efforts go beyond the Model Bank. We are actively experimenting with language model-based services (LLMs) available in the AWS environment. These services aim to enhance system interaction, reduce the learning curve for new tools, and accelerate issue resolution.

Additionally, we are expanding our cloud strategy by deploying our solutions on Azure and working on an OpenShift-based setup. These initiatives highlight our commitment to leveraging diverse cloud platforms to drive the technological evolution of our bank. As we move forward, our focus remains on creating more resilient, cost-effective, and user-friendly banking environments.

Temenos regularly updates its system architecture to meet the evolving demands of the financial industry, enhance efficiency, and deliver new features that align with customer expectations and market requirements. As new technologies emerge rapidly, modernizing the architecture allows Temenos to integrate cutting-edge tools such as artificial intelligence and cloud computing. The goal is to offer modern financial services to customers and enable their rapid deployment.

Customers increasingly expect advanced, personalized, and accessible services such as mobile banking and digital service channels.Architectural modernization enables better scalability and management of high volumes of transactions and data—an essential factor for banks serving millions of clients. In short, Temenos’ ongoing architectural modernization is crucial for meeting technological, regulatory, and market challenges while delivering modern, secure banking solutions to customers.