Varo Bank extends partnership with Temenos

Through their collaboration, Temenos enables Varo Bank to scale based on customer demands, deploy new products effectively, and reduce operational costs. Until now, this resulted in faster delivery of products to market at a scale that meets the surge in digital banking.

Through its broad functionality, Temenos Banking Cloud helps Varo Bank meet the needs of its rising customer base and supports its growth and profitability initiatives. By implementing Temenos’ solutions, customers receive decreased costs, and tech-driven banking services, resulting in a more stable financial life for US residents. Moreover, the partnership allows an expansion of financial inclusion and improved financial health for customers.

Recently, Temenos launched a Generative AI solution to automatically classify customers’ banking transactions, following the deployment of Large Language Models (LLM). The solution allows banks to classify and label customer transactions from free text narratives automatically and with high accuracy in different languages. Classification of transactions can help many banking use cases, including cashflow predictions, customer budget advice, peer grouping, and customer attrition analysis. 

Temenos also entered several partnerships in recent months, including one with Cebuana Lhuillier Bank to modernise the latter’s core banking platform. The bank’s objective is to introduce new banking products and efficiently scale its operations, as well as to expand its reach, targeting over 11 million customers within the next five years.

In July 2023, Convera chose Temenos Payments Hub to improve its payment infrastructure, by adopting Temenos’ Software-as-a-Service (SaaS). Through this, the company aims to enhance its payment processing efficiency, from inbound funding to outbound disbursements, and meet its significant scalability goals. Convera’s objective is to double its payment volumes by 2028 with the use of Temenos SaaS, as well as expand its payment rails, and compete in the dynamic payments market.

During the same period, BanCoppel partnered with Temenos to modernise its core banking services. Bancoppel offers Mexicans who cannot prove their income micro-loans for small purchases with store credits. The collaboration allows Temenos to support the group’s objective of continuing to create an inclusive, sustainable, and socially responsible future. 

As a digital banking option, Varo Bank provides customers with bank accounts that have instant access, free ATM withdrawals, FDIC insurance, and no hidden fees, all within one mobile application. Moreover, the bank offers an online savings account, embedded with automatic savings tools, as well as a credit-builder card.

Back in July 2022, Varo Bank launched a high-yield savings account, with an annual percentage yield (APY) of 1.20%. Yet, the APY can be increased to 5% for consumers who meet certain criteria, including USD 1000 or more in direct deposits from paychecks, pensions, or government benefits. 

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