Temenos AG (TEMN) Earnings Call Transcript & Summary

[Audio Gap] a number of you listening to our results call yesterday. We're very pleased delivering excellent set of results yesterday evening, and we've got a great agenda and lineup of speakers for you today. We're going to be running through a number of different sessions covering strategy. We're going to do a deep dive across a number of our products. You're going to see some great demonstrations of the client user cases of the product as well. We'll also be covering our U.S. opportunity. Takis, our CFO, will be digging into how we plan to drive growth going forward and deliver value for our shareholders. And we'll also be talking about how we operate responsibly as a company. So with no further ado, I'd like to hand over to Max Chuard, our CEO.

Thank you, Adam. Good morning, and thank you for taking the time to be with us today. It's going to be quite a full day, even though we met not too long ago. In fact, we had our last Capital Market Day, it was in May of last year. I'm pleased to say that a lot has happened during that period of time. A lot has happened on the product side, on the innovation side. A lot has happened from our geographies, the development we've been able to make in the U.S. and in other countries. A lot has happened on our deployment of our SaaS offering, and we are going to discuss that in more details. As you know, last night, we reported our Q4 and full year results, and it was my first year as the CEO of Temenos, so I'm pleased that we had an excellent 2019 across all our KPIs. You can see that the total software licensing grew again at 23%. The last 5 years, we were able to consistently and sustainably grow at 25% over that period of time. We continue to grow on a profitable basis, extending our margins and EPS that grew at 19% over that period of time. And you can see a very exciting new development, which is our SaaS and cloud business, which is really taking off in a massive way. So an extraordinary performance on our SaaS and cloud business, which grew over 50% on a compound base over the last 5 [ years ], but in Q4, grew at around 1.5x faster than last year. So extremely pleased with those results. However, today, we are here to talk about the medium term and the long term as well because we operate in a market which is so large. It's a $60 billion market. And the driver for growth and the driver for change are so required for banks to transform. And I think we -- most of you works in banks, you understand the fact that banks are still, by far, using legacy technology, technology which is not shaped for the digital age and that it needs to change. And hence, not only it is a very large market but it is also a growing market, the market which is growing at 8%. Clearly, we've been growing faster than that because we've been gaining market share. We are already the established leader in that market. So today, we are the world's #1 banking software provider, with more than 3,000 banking customers. Any type of size, large banks, the most sophisticated banks, the digital banks, but as well smaller banks, regional banks. That leadership give us so much credibility. We've got so many references. In 2019, every day, a bank was going live on our software. So that's huge. And this is why we've got the confidence to be able to foresee that we will continue to sustainably grow by at least 15% in the long term. We've been delivering that -- above that, obviously, the last 5 years on an organic basis. I'm talking organic. Here, you can see that the last 5 years, we grew at 25%. So we've been able to very nicely complement our organic growth with very strategic acquisitions that have been fully integrated within our offering and that have been able to accelerate our growth. And that's clearly -- the goal is to continue to bring additional growth through M&A as well. And finally, and which personally give me even more confidence on our sustainability of our total software licensing for the future, is the acceleration that we are seeing on our SaaS and cloud business, which clearly was not there a few years ago, and we are going to see how this is transforming our business. So excessively exciting. We all know that banking is under massive challenges. It's undergoing a fundamental change. We see new competitors, which are becoming more prominent. And already, we see new entrants that are trying to capture the customer relationship, and that they want to be able to gain access to the customer and to distribute banking services. At the same time, the customers are more sophisticated. The millennials are tech-savvy. What they want is high personalized experience, the same as they enjoy with Amazon or with Uber. And also, you've got the regulators, regulator that is encouraging innovation and competition, just if we talk about open banking and how we see the banking value chain being -- breaking up between the manufacturing part of the banking and the distribution part of the banking. You got new technology like AI, explainable AI, cloud, API that is driving change. This is exciting change, which new entrants are able to capitalize on it, and the incumbent vendors are clearly at a disadvantage compared to them. So to win in the new era of banking, banks need to transform. Banks need to change, and banks need to embrace technology to create new business models. We never had so much technology, and this is great. It -- technology enables that transformation. Look at what we can achieve with SaaS and cloud, the agility it brings, the scalability it brings. You can scale up and down automatically at a very more affordable cost than when you were doing traditionally on your own application. APIs opens up a whole market. You connect with the ecosystem. You can become as a bank, a marketplace provider of both financial and nonfinancial services. Micro-services allows for a continuous innovation. You can renovate the bank a step at a time. You choose when you want to start and when you want to finish. All of that was not possible the last few years, technology enabled that change. AI, explainable AI on efficiencies, on being able to offer hyper-personalized experiences. And obviously, underlying all of that, you need security. And the more data analytics you get, the better your models. So as I said, the banking model are changing, and we see more and more the traditional banks that choose to offer and to manufacture product, that those products were then going to be distributed to their customers to break up. And we see more and more a concentration on the manufacturing side, where we see consolidation. And we see lots of new entrants on the distribution side that do want to be able to distribute new products, that do want to be able to offer personalized customer experiences. And that, ultimately, becomes marketplaces that will distribute both financials and nonfinancial products to the customers. And Temenos has the technology and the product to -- for that requirement. We've got the de facto offering for both the manufacturing and the distribution. All our products are cloud-native, cloud-agnostic, multi-cloud. With Temenos Infinity, we address the distribution side. It is the most advanced solution that exists in the market. I have to say in fact, pleasantly excited of what we've been able to achieve in 2019 with the acquisition of Avoka, with the acquisition of Kony, and we'll discuss that in a moment. And then obviously on the manufacturing side, we've got Transact. And both can be sold on a standalone basis or tightly integrated through APIs. We believe banks have everything they need to succeed. They've got the capital. They're regulated. They've got extremely good insights on the customer data, and they still enjoy the trust of the customer. But there is no question that we need to transform. It is our belief that it is through an end-to-end transformation that banks would get the most of the benefits. So back to front, front to back. And we've got the technology. We've got the ability to do that. And this is why I remember a year ago, we decided to launch Infinity and Transact to give the freedom to the banks to innovate the way they wanted. And what is great is we've been able to prove the benefit of that. And we run what we call value benchmark with customers, which is -- and Kanika will discuss this in more details later on, which is detailed financial analysis of our customers and prospects as well. And we've been able to prove that our customers are much more profitable than the rest of the industry. We've been able to prove that they can enjoy half of the cost-to-income ratio, which is amazing. Our top-performing quarters enjoyed 27% cost-to-income ratio. I mean, that's a dream for most of the banks when you see that on average, banks have a cost-to-income ratio at more than 50%. And this, you can achieve with modern technology from Temenos through an end-to-end transformation. They obviously enjoy higher return on equity but most importantly, they can invest so much more innovation, where today, traditional banks do spend a lot on IT. We know that they spend a lot, but the spending goes on the support, on the maintaining -- of the maintenance of the legacy systems. We have what we call the winning combination, and we are very proud of that. Very proud because for the last 25 years, we've been extremely focused on. And how we differentiate ourselves and how we lead the market today is because we lead both with detailed deep function -- banking functionality, full understanding of the banking market, the -- and [ large now ], the deep knowledge that we have is amazing. But in addition to the knowledge of the banking market, we get that to the country level, to the regulation in each of the country that we package. So this is one of the strengths, and we couple that with advanced technology. Technology which is native, which is open, which is agnostic, which is APIs first. And that combination, nobody has it. We do see some vendors that have one of them but not the other. And let's discuss that in a moment. So today, we outsell the competition by a factor of 5. So on average, we sell 5 more deals than our competitors. And in fact, that leadership is accelerating. We see what we call the old legacy. Those are the traditional vendor that we've been competing for the last 15 years. We know them extremely well. We've been beating them for the last 15 years and we will continue to do that. Those are vendors that have an old technology, which is not fit for the digital age. They are not focused as well in one specific industry, so they usually cover all type of industries so you can question the dedication to banking, as Temenos does. And clearly, the technology is not fit for the cloud. It's not fit for AI, not fit for the innovation of DevOps. So that's one set of competitors. And as I said, we know them quite well. Now we've seen some new competitors that entered the last few years. We call them the new legacy, and I'll tell you why in a second. Those are digital-only. So they are cloud vendors that have a very limited scope of functionality. It's mainly a technology toolkit, if you want, which has not been productized, that cannot offer end-to-end renovation, that don't have AI analytics capabilities. And most importantly, as I said, they are not able to productize, they are not able to continuously innovate the product. And hence, they will become the new legacy. We have a unique value proposition. And as you know, for the last 25 years, we've been extremely consistent with that. First, we believe that we do one thing well, and this is banking. So we've been focused 100% in that. And when you go to a bank and you say, "Listen, your success is my success. There is no way out for me. We are your true partners." This is extremely powerful. So today, focused only on banks. We've got more than 3,000 banks, as I said, to the largest one, to the most sophisticated banks, to the digital-only banks and to the smaller banks as well. So any banks anywhere of any size. I already discussed our winning proposition, of functionality and advanced technology. We are open, independent, as I said. You can implement our core system on the back of any front system or you can implement our Infinity or front office with any back office system. So totally independent, open through our developed platform. Relentless focus on innovation. We are passionate about innovation, and you'll hear my leadership team later on talk about product innovation and how passionate, how we are proud to be able to come -- to be the first to innovate. We were the first to go to the cloud 10 years ago. Ten years ago, we were the first to put a bank on the -- a core system on the cloud. And we continuously do that because we invest massively in the product. And finally, we've got a very large community of more than 6,000 people, 6,500 people of consultants that we can leverage to be able to ensure we deliver success to our customers. As I said, in 2019 alone, every working day, a bank was going live on our software. We have a very large market. We said that it's a $60 billion market. Now 80% of that spending, though, is still done in-house. Still the majority, and this is probably the last industry that has not fully embraced packaged software. So still the majority, 80% is spent in-house on legacy systems, a patchworks of different systems that has accumulated over the last 40 to 50 years, well before the age -- or the Internet age. Clearly, those are not fit for business anymore. They are struggling to automate. They are struggling to get efficiencies out. They are struggling to bring customer experiences, and there is a need to change. We've got 4 main products to address that market: digital front office, which is our Infinity product; Transact, which is our core banking product; payment; and fund administration. And all of those segments of the market are growing. On average, this is a market growing at 8%, and we believe we can be growing faster than that because of our value prop. Now this very large market, how do we go about capturing that opportunity? And last year, we discussed which were our strategic initiative because, as you know, Temenos is all about growth. It's all about capturing that opportunity. And hence, our strategy has been put together to ensure we can maximize on that opportunity. It starts with the product, obviously. It starts with ensuring that we continue to have the best solution out there. As you know, we spent twice as much as any of our competitor on R&D. We spent 20% of our sales in R&D. And to put that in perspective, over the medium term, over the next 3 to 5 years, this will be around 1 billion that will go back into the product, more than anyone else, more than even the largest bank. Clearly, we want to continue our geographic expansion. We've made some very strong inroads into our -- into the U.S., but that's still a market that we want to continue to capture, to capture the growth. Investing in sales and marketing as we've been doing for the last few years to ensure that we've got more specialized salespeople to capture that opportunity. Cloud as well, and we'll discuss cloud in quite some details in a moment, the opportunity on how to capture it. Partners. Most technology side and the technology is evolving so fast. We work more and more with our technology partners. Is it Microsoft? Is it AWS? Or is it Google? As you know that we've announced an extension of our strategic partnership with them. Or it is NuoDB, a very interesting company where we invested into it, let's say, a modern database, which is a distributed database technology. And finally, using M&A to strategically accelerate our growth. We only look at transactions that are able to complement, which are synergistic and [ things ] that will accelerate the growth of the group. I'm pleased to say that in 2019, we made major progress in each one of those areas. If we start with the product, in 2019, at the start of the year, we started with the separation of Infinity and Transact to give choice to our customers. And early this year, we announced our cloud-based micro services to be able to offer hyperpersonalization with explainable AI to the distribution side and to allow continuous renovation for the largest banks on the Transact side. We've made significant progress in the U.S., obviously, following the acquisition of Kony and Avoka. We've got now a very large structure in the U.S. We've got distribution in place. We've got products, amazing products to sell in the U.S. SaaS, our ACV grew 68% in 2019. And in Q4, it accelerated to around 130%. So extremely strong growth on our SaaS business. We continue to expand on our partner ecosystem with more than 6,500 consultants, 12,000 developers community that can, through our APIs, extend the product leadership. And finally, 3 very strategic acquisition: Kony on the digital front end; Logical Glue on the explainable AI; and hTrunk on the data and analytics. To capture that market, we benefit from 5 engine of growth. Transact is where we started. This is where we enjoy the largest market share today. But this is still a clear driver of growth for us. In 2019, we grew Transact at double digit. So we continue to be able to penetrate the banks. And with our microservices architecture now, we are offering even, for the largest banks, a way to transform at their own pace. Infinity is the largest part of the market and Infinity is extremely exciting. Infinity grew in 2019 a multiple of the growth we had with Transact. This is all about offering personalized customer experiences. And we see banks that need to differentiate themselves, and that's how you can do that. So we are very confident that with our Infinity offering, which is best-in-class in the market, we will be able to continue to accelerate and gain market share and gain leadership in the digital front office. Then payment, also very exciting. It grew very nicely as well in 2019 and we see lots of opportunities, some of them driven by regulation. And finally, fund administration, also growing at 8%, a slightly smaller market at $1.6 billion addressable for us. So let's look at cloud and SaaS for a moment and look at some of the achievement. As I said, we had our first customer on the cloud in 2019 and that was really an industry-first. But I think what is exciting is how banks are using cloud as an enabler for change. And clearly, the last few years, we've seen a massive acceleration. And what is also very exciting about this is, and obviously, I mean, constant discussions with CEOs of banks. And all the time, I'm asking myself, this cloud deal or this SaaS deal, would it be possible to have position a traditional premise deal to that customer? And most of the time, and if it's not all the time, the clear answer is no. And SaaS allows for decent opportunity, allows for new models to be created, allows for banks to go to their Board and get the deal approved, which will not have been the case on the traditional on-premise infrastructure. It brings agility, it brings scalability and the fact that with the cloud, the environment, we are ready to scale it up and down. So the cost infrastructure is much more affordable for a new vendor. So very exciting development on our SaaS business. You can see that we get today more than 1,000 customers using our SaaS offering. 50 of them are core banking customers. And today, 42% of our new deals are SaaS. And obviously, the growth on our ACV for the full year was at 2019. But to put that in perspective of what it means, if you look for the one, some of you here, I know, have been looking at Temenos for quite a while, it took us 19 years to build a business of 100 million license bookings. 19 years, so when we started in '93 up to 2012. We expect by the end of 2020 to achieve an equivalent of 100 million in license with our SaaS business, which means that it will have taken us slightly less than 4 years to get there. So this gives you the magnitude of the acceleration. Within the Temenos history, we've never had such a growth driver. So that's super exciting. And this is why at the beginning, I said I'm even more confident on the ability to sustain our long-term license growth of more than 15%. The U.S., as you know, is one of our strategic market. And later on, you are going to hear it live from our headquarters in the U.S. from Alexa, who is our new president from the Americas to discuss the opportunity in more detail. But I'm very pleased with the inroads we've been able to make in 2019. In the last few years, in fact, we've made a lot of progress in that market. Just in last year, significant growth in our revenues, grew at 38%. Massive growth on the headcount, 50% growth. What is very important, this was one of the things that we are missing, is clearly the distribution. We've got a very strong sales organization right now to be able to capture that opportunity, which increased by 57% in 2019. We see Temenos Infinity as a clear driver for growth in the U.S. And as you know, banks in the U.S. do enjoy a higher return on equity. And for them, the ability to gain new customers, the ability to differentiate is extremely important. And that's why with Temenos Infinity, we give them the ability to do that. We give them the ability to gain new customers, we give them the ability to grow faster. The scale also in market for core. In fact, we launched a very exciting proposal, which is a SaaS proposal for digital banks to allow them to go live in just 90 days. So that's quite exciting. And as I said, pipeline is building very nicely. And we'll hear more from Alexa in a moment. It's more than Temenos today. Temenos, clearly, is at the middle of all of that. But it's a community. It's an extremely powerful community, and that community brings a lot of success. It's a community that get together on a yearly basis to -- at our TCF, that exchange between themselves, that challenge themselves, that learn from each other. So it's a very, very powerful community. And this is the point I've said that as soon as you get scale, as soon as you get credibility, your growth should accelerate. And that is the effect of that community. So it's 8,000 Temenos people. We call ourselves Temenosians. It's 8,000 of us spread across the globe. It's 6,500 trained partners on our software. It's more than 3,000 customers. It's more than 100 FinTechs, which are on our marketplace. It's more than 12,000 developers that are part of our community. And it is 0.5 billion customers that rely on a daily basis on our software. So that's extremely powerful. We talk a lot about why Temenos has been so successful. What is -- what was key to that success? And there are many elements of that and I think I mentioned quite some of them. But there is one thing that we are extremely proud internally, and I thought I should also share that with the market, which is our culture. And we call our culture, the name is, we call it Temenosity. That's the way we do things. We do things with Temenosity. And every one of us has a different view of what it is, but ultimately, it is about tenacity, it is about velocity, it is about responsibility, it is about community, about authenticity. And each of us have a different view. For me, it has always been about putting Temenos first. You put Temenos first, you know that this is the right decision. It's always about the velocity. I've been with Temenos for 18 years, the ability to change, the ability to take decisions, it's amazing. And we proud ourselves about our culture. We believe it is one of the key element of our success. We value people. And as you know, we -- this is the Temenos key and we are all proud to wear our Temenos key, which remind us that people are the key. When you're in a business where you sell something which is intangible, the value in the people, people create the software, people sell that software, people take care of the customers. So we are extremely proud of our culture. We are also proud on the progress we've made in our ESG initiatives. And we do believe that ESG leadership creates value. And it's now more than 3 years that we've structured our initiatives and we've been able to make a lot of contribution. And we are also proud to be able to contribute. And Kalliopi, who is running our sustainability program, will go into much more details. But this is something that we are all extremely proud to be able to contribute. And Temenos has always operated at the highest standard of sustainability and responsibility. So very proud of that. So to conclude, I've shown that slide already. And we've got the credibility, we've got the leadership, we've got the product, we've got the customers. We've reached a major milestone of $1 billion of revenues. We are the category killer of banking software. And what we've seen in other industries is once you reach that stage -- and to reach that stage takes quite a bit of time. It took us 25 years. For other companies, it took longer or less. However, once you get there, what is clear is things [ accelerate ]. So this slide is not about thing that we'll be a $5 billion revenue in 5 years, even though clearly, I'll try to get there, yes. It's about saying that the acceleration once you get to that critical size, to that credibility, to that reference point, once you get that community, when this community accepts everything that you do. So we are very excited. We've got big ambitions. We've got a big market. We've got a huge opportunity and we want to capture it. Thank you very much. Thank you. Let me introduce Mark, who as you know, has been running our product division for quite a period of time. And now he will also have the great pleasure of running our technology group. Thank you, Mark.

Good morning, everyone. As Max said, I'm Mark Winterburn. I run the Product and the Technology group. After me, we've got 2 sessions before coffee. We're going to show you Infinity and then we're going to talk about Transact, and there'll be a coffee break, and then we're going to do technology, going to do cloud, and then a bit about AI and then some demos. So that's the layout for the -- until we get to coffee break. Max, in that session there, talked about product leadership so I want to just talk a bit about that before I get Brian up to talk about Infinity. I'm going to start here, which is where I normally start in these sessions. We're very proud of this. It's -- when people say, "Well, why is Temenos at the forefront? Why have you got this product leadership?" It's not by accident. It's because we've been investing for over 25 years, and that investment has increased. And frankly, the more deals we win, the more M&A we do, the more skills we add to an existing world-class team, round and round the world goes and I'll share a bit later how our velocity is increasing now. So I've seen a gap between us and the competition. Max talked about how we outsell them. That gap is growing for me as the velocity of this thing increases. So in the past -- let me put up a bit more detail about this slide. Client server back in the day would have been a proprietary database, would have been UNIX and stuff. We went through multi-tier. We started to utilize Microsoft Stack, SQL Server, Oracle Database. You go through cloud-ready and we started to talk about platforms for user experience, REST APIs, et cetera, et cetera. So I think it genuinely has, over this period, been revolutionary and also agnostic. We do not and have never told clients what technology to use. We leverage the best in the marketplace. And you'll see when we talk about cloud, that continues. Max talked about the fact that we've got a lead in technology and we've got a lead in the package functionality. That package functionality lead continues to grow. And again, looking right back at the start, we'd have been adding trade finance, we'd have been adding various other corporate wealth. And then as we've rolled forward again into API frameworks that allow us to offer enormous range of depth of APIs, but also things like robo-advisers and faster payments and stuff like that. So it is both streams. So what does that look like now? Well, it's resulted in a very clean architecture. So omni-channel. Then it was only a year ago that we split Infinity from Transact to allow us to offer banks transformation in whatever order they wanted to do it, to allow us to offer best-in-class, both in the front, as Max was talking about distribution, but also in the back, in manufacturing. Payments has always been built to that architecture from the start as we built it ground-up a number of years ago. So very clean omnichannel, leveraging the data lake and AI. And we talked a bit about M&A earlier, that hTrunk, and then really helped us on the day-to-day. We leveraged that and embedded that quite quickly. Logical Glue on the explainable AI. These things, we get them, we embed them quickly. And again, nice and clean stack. And then risk and compliance either through AML, FCM, but also the huge investments we make in the country model and understanding the regulatory requirements in the different countries in which we operate. All good, all nice and clean. Then, of course, Max talked about huge growth in SaaS and cloud. And of course, because we're agnostic, we offer that on all the major cloud providers, and some that -- Alibaba, for instance, is a recent addition. If we run it, fine, we'll run it SaaS for you the terminal software. Client runs it, they get the choice. And then as we see new technologies emerging around Kubernetes or OpenShift and now Anthos, we'll be agnostic in those as well. If they're the right thing, if they're leading technologies that clients want to leverage, guess what, we'll have tested it and optimized to run it on those platforms. And of course, those that still want to run on-premise, we run on-premise, same stack, ultra-high performance, reliability, et cetera. I wanted to dig into this slide a little bit. So you've got a nice clean stack. What's going on in there since we made the announcement about Infinity and Transact. Well, this slide shows the enormous amount of work. And if you look at the distribution services, Infinity, and in the microservices piece in Transact, this is giving banks choice about how to take value, in what order to take value and to take value more quickly, right? So there is an enormous amount of work going on in the product group to get this stuff done. And I showed the innovation since the '90s, and how proud we are at that. What you are seeing here in one slide in 1 year, if you will, would have taken years in the past. We've got some real velocity now. And I think there are some reasons for that. One, the architecture is clean, and we've worked for years for that to be the case, and we'll continue to do so. Two, we attract world-class talent, either organically or through M&A. Product group now is over 3,000 people. So you've got a real army of talent there to be consistently changing and improving the product on a daily basis. And then secondly, the split between Infinity and Transact has allowed us to really concentrate on what underpins the value there and to move more quickly than in what -- than if it was treated as just one stack. So what you're seeing there in a year would have taken years before that. And that velocity is increasing. We're seeing us be able to deliver more concurrently with better quality than we ever could. And I only see that increasing as we move forward. So a very key slide, and you'll hear more about this as the guys get up and talk about Transact and Infinity in more detail. All good, okay? So product leadership in good hands there. But how does the client take that and implement that? And I've spoken a little bit on one of these in the past about UTP, which is how we changed the way we build and deploy software to be ready for the cloud. So we started to make the packages of code that we build smaller, to be far more focused in small bits of code, those are checked in every day. The full regression run overnight. So we are coding on a daily basis and putting that into the system, and it's automatically tested. We then take that a step further and allow our clients to consume it at that rate should they be ready, should they want to, right? So UTP over a period of time has become the continuous deployment [ TCD ]. Are banks yet ready to take software upgrades on a daily basis? Frankly, no. But they will be as cloud becomes far, far more pervasive, that ability to take a change and implement it really quickly will define, I think, the nimbleness of the bank, right? And we can do it daily now. We can build in the morning and consume it in the afternoon, as it says in the strapline. We've already got banks taking software every month. So roll that out, monthly deployment, they take that software monthly or there's quarterly, as the cloud becomes, as I say, more pervasive, you're going to see more of that. That timeline is going to speed up. So the speed of innovation for us has been -- the speed of innovation for our clients will speed up, too, as they become more nimble. And this is all underpinned by use of the cloud, right? I remember when I started, it's ages, going to test this still, I've got a code imported deep of it. Now you can spin-up an environment then so you can have a Transact or an Infinity deployment there and then ready to test. It's the sandbox environment we use with our marketplace. This is a much easier way to build and test code and then deploy it. And as you'll see, we ship the code, the bank's doing its own work essentially. With the extend phase, they then assemble and release. And what we're saying is that whole process automated using cloud technology is a game changer to the banks. And we're seeing a lot of interest in that approach to break down the difficulties involved in employing transformation in core or payment software. So I'll just let this thing work its magic. Well, all I would say on this is we do a lot of change. If you've got over 3,000 people in the product group, you're deploying a lot of change. What is the process we use to manage that change? Well, clearly, we're listening to customers, we're talking to prospects, we talk to the industry, we keep our eye on competition, obviously. We look at what other industries are doing to see if there are things that would be of use for us. And all of that is a set of possible changes, our backlog, if you will, and we pump that through a system, it's online, and we have a regular product board C-level meeting where we get into those things where people come along with propositions, which we agree or disagree. They could end up in core of the software that we ship to all of our clients, could be a regional upgrade, a change which allows us to prosecute a region or there's change in a region. We do occasionally do code just for single customers rather than for the whole product. So it could end up there, or, of course, we could reject it. And the way we work at pace now is we have a standing meeting every month. But where we see opportunities to do change more quickly, we take those opportunities, run the meeting, make the decision and go. So we've had to invest in the product group, particularly, because the development machine is running at such a pace, we do not want it to get in the way of that. So this is just to show how we manage all that change. We also do a rolling governance review, which takes each month, what have we delivered, what have we yet to deliver, just adds on, so that's a rolling 12-month review of everything we commit to on a monthly basis. We had a great kickoff in January. I think kind of 1,000 people in a room. We spent a couple of days with the presales guys going through what we've done. We had a day in the main plenary, and we couldn't get through everything that we wanted to talk about. Broadly, a product day, some of the bits and pieces. So what I just tried to capture here is in the main blocks of Temenos Infinity and Transact, kind of things that we've been working on to bring to market. And then underneath, across all of our product lines, we continue to invest in that organic that drive into the feature function. Everything -- we've got teams that work on each one. It's not as if we just do Infinity or Transact, we do it across the piece, technology and the various business units for feature function. A further couple of sessions with some of the guys in the room if you want more time for us on this. Now isn't the time, but we could do sessions to go into a bit more detail. But the key that we want to concentrate on now is around the Infinity and Transact piece. So what I'm going to do is get Brian Abele up and he's going to talk about the Infinity piece first. Thank you. Brian?

Thank you, Mark. So the -- good afternoon, everybody. The 5 drivers of growth that -- obviously, that Max has talked about, we're going to start talking about individually a few of those, and we're going to start off with Infinity. Infinity really represents the biggest market opportunity that we've seen. You saw at the very beginning that -- in Max's presentation, what the size of that total opportunity was. And what we're really seeing as far as what the banks are asking about, what they're really going through right now is they're not asking the question whether they need to go through a digital transformation. What they're doing is they're trying to figure out how to go through that digital transformation. What are the steps that they can take given the fact that they have legacy technology, given the fact that they have regulatory burdens that they have upon them, given the fact that they can't do massive projects just on a whim like that. So what we've been able to do is figure out exactly how we can go help our customers go through that digital transformation in the digital front office with our Infinity solution. So the overall market opportunity, which I'm going to talk through with you guys, and then I'll talk a little bit about what Infinity is and how we're actually taking it out into the marketplace. The digital front office solution for us is one that can do the 3 primary objectives that they need to be able to do in the digital front office: market to your customers, acquire new customers and service those customers. That's the bottom line. You have to be able to do that in that digital front office piece. $5.9 billion is that overall opportunity, growing at 8%, so very significant growth. And this solution that we have for this particular market, as we said, is Temenos Infinity. And Infinity is really driven off of 3 kind of key tenets. So when we think about Infinity and how we're talking about it, how our customers are responding to it and listening to it is the fact that it's driven off of these 3 principles. Number one, it's an omni-channel full-service platform. So Mark just kind of talked about the AI-driven, API-based, micro-services-driven, everything is being used leveraging these open technologies. So the platform is the key component, the starting point for how we are able to go deliver in that digital front office piece. The second piece is that hyper-personalized digital experiences. Those that are native, regardless of whatever type of resource or channel or glass that a customer is coming in from. So whether they're coming in from a browser, from an app, from a wearable device, any of those types of interactions that they are bringing forward, they are coming forward, but it's in a personalized way. It's in a way that's very meaningful and unique in a market of one type of technology approach and experience approach. And finally, it's all built on the one thing that really makes us stand out, those banking-specific distribution services that allow for the open banking needs that are arising as part of this whole digital transformation that's taking place. So the thing that does make us unique is the fact that we do have those distribution services, we have the technology, we have the -- absolutely the entire breadth and depth of solutions available to us. So when we look at the competitive landscape, whether it's actually having the full set of technology, the full set of capabilities, the way in which it can get delivered, partnerships that exist, there's really nobody out there who can do all of those things the way that Temenos can. And that gives us an advantage, and it gives us great opportunity to go, continue to open ourselves up and get ourselves into more opportunities and expand the overall footprint that we have for our digital front office. It's a very exciting place for us to be in, especially given the fact that our competitors really can't stack up to us based on all of the different things that we have available to us. So how are we coming to market? What are we bringing forward when it comes to our digital banking solutions? It's really a holistic approach. And it's really any of the type of person or entity that a financial institution is going to be able to serve. So we serve the entire gamut running from the retail customers for their basic needs, the onboarding and origination that they need to be able to open up any type of account and be able to be serviced on those types of accounts. Gig and small business. The -- one of the fastest-growing labor markets is the freelancer worker force, right? The gig people. The people who are driving for Amazon delivery, or who are doing fibers on the side in order to make either multiple jobs or on top of an existing job. And there's a set of services that we have to be able to offer to those people, and we're providing those services as part of our overall Infinity solution stack: Wealth, business, corporate. The entire range. Everything from the most complex trade finance type of transaction to the very basic retail needs. That entire set of capabilities is something that we have within the Temenos Infinity stack, again, making us unique and helping us be able to solve the specific problems that we're hearing from our banks on a regular basis. So how are they using the Infinity technology? And what are they doing in order to provide services to their various constituencies? It's really important to think about this because digital transformation really is not just about the front-end experience. It's not just about the consumers. It's also how the bank interacts with that technology and what tools are available for them to be able to better serve the customers and be more efficient and be more profitable and market the right way to those customers. So we have 4 different personas that we really target when we talk about our solutions for Infinity. Number one is our customers. So whether they're coming in from a mobile device, like Max here actually going through his own application and his personalized view, so you can see how hyper-personalized our solution can be. To be able to offer services to those customers, again, regardless of the touch point that they're coming in from, whether they're coming in from an app or coming in from a mobile -- or a browser or any other type of device. On the branch side and in the support elements, you've got to be able to support those customers. You have to be able to service them. You have to provide the right types of interactions when they contact or when they reach out to be able to answer questions about a marketing catalog or to be able to better understand what their needs are to provide the right types of services to them. So we offer those solutions as well. We have a product called [ Spotlight ] where all of that is available to that back office user, so they can see a more comprehensive view of what is available to them. And it's all driven from our analytics and all of the data that comes through our applications that we can go and drive those kind of more meaningful conversations to take place. Product owners. Being able to create products and understand the profitability of the products and what products need to be targeted and marketed for specific people, how to get those products developed and rolled out and available to specific customer bases or specific pools of people that you were going out to target. Those are a very key constituent that we have solutions for to drive that. And then, of course, the technology. All of those -- all of the elements that underpin this, everything is API-driven. So being able to not just have solutions that come out of the box, but to be able to integrate and to incorporate other third parties or other components that are just part of their natural ecosystem, we have the tools and the technology that's not something very difficult to use, but is very simple, and in many cases, are just drag and drop-type technology that allows for the integration of our solutions to other platforms. So It's a very, very powerful sets of tools. So Infinity, as you kind of think about the entire banking value chain, is really kind of that channel view, how people are interacting, how people are coming into and experiencing the bank and the financial institution in some way, shape or form, and it's leveraging experience APIs that go into our distribution services. And I'll talk about those here in just a second. That really kind of stand out. That's where we're actually taking some of the real true banking capabilities and making them standalone and deployable solutions so that as banks go through that digital transformation, they can deploy those services to really meet very specific needs and have a much more robust road map to get to a complete digital transformation over time. And then, of course, the manufacturing on the back end to actually handle all of the transactions and the payments and the other different pieces that are kind of the core elements of how financial institution runs. So really, Infinity is that kind of driving force. But how we see this in our customers and in the environments that they serve is really interesting. So recently, we're talking with a financial institution. This is about as close as a topography as we could potentially draw for them. We were going through an exercise with them. And from the very beginning, you can see all of the touch points that they have to be able to support. They have to support all of those touch points because they're constantly getting asked by their customers, they're constantly getting the competition from FinTechs who are coming after them saying, "You've got to be able to have augmented reality when it comes to a banking interaction, because there's a FinTech who provides that. And if you don't offer it, then your customer is going to pick up, take their accounts, and they're going to go move over to that other FinTech." Right? So all of these new technologies are coming -- are coming available to our customers. And so now we have to be able to respond. What's happening is that as they individually get deployed into specific areas, they have to make direct connections into the various back-end systems that the financial institution already has. And as we kind of talked about before, making the big change, changing something on the back end becomes a lot more challenging. So how are we going to go deliver services? How are we going to go through and provide the right types of product capabilities and digital front office services when we have this kind of environment? Because this kind of environment creates problems. The problems that it creates for those customers are things like application drop offs. North of 50% of applications that are coming through from an onboarding standpoint from one of those channels will just disappear. And that's a person who was going through the exercise of actually trying to originate an account at that financial institution, and they're just walking away. And so that kind of drop off is just not acceptable. You can't have those levels of drop-offs and be able to continue to succeed because that's the bread and butter. That's your new customers that are coming through the door. Lost marketing leads. Wherever people are coming in from is not being captured. You're not seeing what's actually happening when it comes to the delivery of those leads and making sure that you are following up. And the third major problem that we see in this kind of an ecosystem is just the high legacy platform cost. Millions, millions of dollars are being spent on this in order to preserve this ecosystem that is not able to provide the velocity and the pace and the speed with which the banks are expected to be able to behave. So we have addressed that with our Infinity solution. So when you have Infinity at the financial institution, you can actually take those front-end pieces, those -- and whether they are from actual Infinity applications that we actually have or it's things that the financial institutions themselves will actually build out and deploy themselves, but leveraging those distribution services in the middle to create the logic, if you will, or the functionality, the capabilities that will allow them to maintain some of their existing applications, but have a more consistent experience. This provides that seamless onboarding experience. It provides the ability for the banks to see in one place what is happening when it comes to servicing their front office and servicing their customers in that kind of a way. So this is a much better approach. It's driven off of APIs. So everything is open. We're not trying to lock everything down here because there's just a lot of different systems that we have to be able to plug into, and that's really critical to us is being able to have that openness, that ability to be able to integrate. So the distribution services that we have within Temenos Infinity specifically. These are just the sampling of some of the distribution services that we have rolled out. Origination, obviously, is critical for us, onboarding, funds authorization. These are all the types of microservices that we have started to build out and are rolling out to some of our customers currently. So this is the area where we will continue to see that focus for us, because the distribution services really provide a set of kind of very important value propositions. Number one, it provides the ability to personalize and create a level of explainability for all of the underlying artificial intelligence that's taking place in some of those microservices. So number one, for the personalization, we can actually be a very focused, understanding with the data that we have to be able to really provide a tailored experience and provide the right type of product at the right time for that particular customer. Super important to be able to do that. And not only can we do that, we can actually, with our explainable AI, and we'll talk about it later in the afternoon, is really provide detailed information about why that particular recommendation was made for that particular customer. So it's a very, very powerful tool, all being delivered through our distribution microservices. The deployment and the cost of operating this, because these are run in the cloud, they are standalone entities. So now we have the ability to deploy these as a standalone entity, and they are cloud-based, so they can scale up and scale down as needed based on the usage tied to that. And again, we'll talk about the cloud pieces later on, too. The time to market gets accelerated as a result of this, so we can plug-and-play these microservices, so that we can go deliver specific targeted types of solutions and we can offer those to allow the banks to be able to push their products out the door a lot faster. Scalability and availability, obviously, comes from running in the cloud. And then, obviously, the adoption of new business models. As things change, as FinTechs come about and there's new challenges and new ways in which we have to be able to serve them, we have better tools available to us in order to be able to do that. So that's the Infinity standalone solution. And as we have talked about, Infinity is something that we can offer separate. That was one of the big strategic decisions that we made over a year ago. We've made significant investment to make this solution the market-leading solution when it comes to digital front offices. So now what I want to do is bring up Alex over here, who's going to talk about the market-leading core solution, Transact.

Thanks, Brian. So Transact, I guess, flagship core banking system and happens to be still the core of our business. It's a growing area. It keeps growing. We mentioned the 7% average growth that's still taking place in the market, and we want to be a part of that growth. And our value proposition is still the same, we want to be able to deliver faster and cheaper transformation to our clients. You'll notice that we're not talking about T24 anymore, but rather just Temenos Transact, and I will explain a little bit what it means for the market. In terms of our positioning versus the competition, we're quite happy to have a lot of people to contend with such as the Infosys, Oracle, Sopra, and the newcomers like Mambu that you've seen from last year. We've seen a number of newcomers coming into the market with a different offering, and this is how we compare against these players. So in terms of the scale and the scope of our business, there's a number of equivalent, the -- what Max used to call the old legacy players, which we compete on a daily basis across the world. They have also a global offering. They cover all segments. But nobody ticks all the boxes. So nobody is able to offer an integrated end-to-end capability. So Infinity plus Transact plus AI plus Data Lake, nobody offers that. So as a bank, when you want to transform, you need to go -- if you're not talking to Temenos, you need to go and talk to a multiplicity of vendors and find a way to integrate all of this together. We de-risk these projects because we come with preintegrated software, end-to-end. A number of new vendors are cloud agnostic. They were born with the cloud, they were born with new technologies, but that's what we call new legacy, because most of the time, they're -- or actually, none of them are really cloud agnostic. You will have seen from Mark's slides, we're operating on AWS, on Azure, on Google, on OpenShift, et cetera, et cetera. You take a player like Mambu, for instance, they are completely tied to AWS, that's their SaaS business running on AWS, that's the only thing they can do. It's not sufficient. Because in terms of regulation, in terms of compliance, you need to be able to operate on multiple clouds. Typically, in Europe, there's guidance, strong guidance by the European Central Bank that banks need to be able to operate on multiple clouds. So at some point, it will create an issue for these vendors. On the other hand, we are completely cloud agnostic. Very few vendors provide a real upgrade path. We're a product company, so that's what we do. A number of our competition is -- they are services companies. So their interest is in actually selling the software, but actually selling the services on top of that. That's not what we do. We sell the product, we want to make sure that it works and the bank is happy to run with it. And then they take regular upgrades, and we'll be talking about microservices and how we can enhance that. And then you show that you can upgrade. You're not stuck with new legacy, as we now call it. And in addition to that, I think we're probably the only vendor in the market having this concept of country model banks. So we provide not only the software that applies to all banks in the world, but we also come with [ prepackaged software for ] different countries where we operate. So as a bank, you have their confidence that you'll be able, not only to upgrade your core platform, but you'll also be able to comply with new regulations in that particular country. And that's quite a differentiator, and we see this -- a lot of interest from prospects and, of course, multiple benefits for our clients. Now one of the slides that Max presented was very interesting. It showed the addressable market, the huge addressable market, and actually the spend on third-party software, which is just a fraction of that, to be honest. We want to change that. And how we're going to change that is by changing the architecture of the software, moving into a full microservice architecture. And the target, the main target for this, all the larger banks. The tier 1s and Tier 2 banks of this world who today have probably a lot of very good reasons to change, to renovate, but actually another number of very good reasons not to change. They usually operate on very complex old legacy software, we call spaghetti software. It's very difficult to change and they find it just too risky to change. In reality, they think also, a lot of them when we speak with them, they believe that what they have today, it just runs as a clock, it's cheap to operate, so why would I change? Very often, they don't realize the cost of change. It's not factored in the maintenance. So they say, "Well, compare your maintenance I have today, it's very cheap. It's -- I have a very few -- a small team running is very fine." But what they forget to add usually is the cost of change. Every time there's a new regulation, every time they want to launch a new product, that has an impact on the core banking, that's usually on a separate line, and that is very expensive. Another reason for change is it's old legacy. They may have teams that are aging. A lot of people start retiring. Cobol, after 30 years you get less and less people and less and less expertise. And in countries such as the U.K. here, you even hear about horror stories of banks not being able to serve their clients, and crashes, and bugs, et cetera, et cetera. So some of these banks even have a real operational issue right now, but they're still scared to change because it's so complex, because it's so risky. So we're tackling that with a microservice approach. Rather than coming with a full core banking replacement, even if it's progressive, we're going to be able to offer them piecemeal replacement of very specific functions, one by one. You don't have to replace all of your systems together, you can go really one by one. The ones we are launching this year are the key ones, let's say, for any retail bank, it's accounts and deposits, it's retail lending, it's the ability to manage their products centrally in a product hub and it's the ability to price at a much more granular level and much closer to their customers. There's a number of other services, smaller technical services I will not talk about, and this is really a road map. So we're starting in 2020 to leverage the functional richness of this software and make it available to really to the larger banks. So if a bank has an operational issue, wants to change something with their account processing system, which is really usually the core of the core, now they can do that. They don't need to migrate their customer database, they don't need to change their GL, they don't need to change their reporting, they can just focus on that. So we are mitigating the risk by making it a much smaller upgrade project, okay? Same goes for retail lending. Why did we pick this too to begin with? Because we're very strong. We have a very strong product in those areas. So we're quite convinced that it will address most of the bank's requirements and probably a lot more. The next 2, the product hub and the pricing hub, are even more interesting, because this is something that you can see as an add-on on top of an existing legacy platform. You don't even have to change your core platform, your spaghetti. You can add these blocks on top of it. Many banks have multiplicity of systems and no real clear view of everything that they offer as a product. So with the product hub, we want to offer them the capability to have a single point of reference for all of their products in a hierarchical form, and this is a place where you can even create new products that will be feeding into the underlying systems. This is -- we see a lot of interest. Just mentioning this a little bit has raised a lot of attention on the market, and in particular, in conjunction with Infinity, we have banks saying, "I just want to replace my digital platform at the front, but the back is such a mess, it's impossible just to upgrade. I want to replace the front, but the back is so complex. Can you give us a way by which we have a clear view of all of our products?" So yes. This is what we can do with a product hub. And same goes with the pricing. If you're pricing, your operations in multiple segregated systems, you don't really -- you're not able to aggregate all of that at a customer level. You're not able to price based on the relationship you have with a particular customer, which is what all the new banks are doing. This is what they're very good at. They know their customer. They have a single view of their customer, and they're able to price according to the conditions and the particular context of that particular customer. If you're dealing with a legacy system with many different systems, it's impossible. So again, we are proposing this additional box on top of the legacy, a pricing hub, which is something we use today in our core banking. So it's proven, it works, it's got a lot of great features and we want to make that available to any bank, even if they're not using any other Temenos software. So the benefits, and this is also why we decided to make that transition from T24 to Temenos Transact, it's to really make it clear to the market that there's a change. There is a before and an after in terms of the architecture of the product and the benefit that it provides. For our existing clients, it's also very beneficial. It means they will be able to upgrade module by module rather than upgrading the entire core system. So nowadays, when a bank wants to upgrade a core system in our galaxy of customers, they tend to do it every 2 or 3 years, we are now giving them the ability to upgrade much more frequently and to take the innovation as they come. So this is something actually almost 100% of our clients have been waiting for. So it's now available. For the larger banks, as I mentioned, it's an enabler. The message to all these bigger banks, it's not impossible to change anymore. We're making it possible. We're enabling this progressive and safe renovation. And with the pricing hub and the product hub and new features that we are going to launch this year or next year, we're also delivering enterprise capabilities on top of the existing systems. So there is a lot of value in this. Again, if you think of the spend on third-party software versus what banks actually really spend on their in-house legacy, we want to capture a much bigger fraction of that. It also enables us to have a much clearer view and segmentation of the market, of our clients and our targets. For the small banks, microservices, you could say it's irrelevant. We're running their business, so whether it's running as microservices or not, it's not really an issue for them. This is actually -- the benefits are for us as a SaaS operator. It makes things easier for us to roll out internally. But for a small bank, we want to sell them the full Transact, all the integrated capabilities, regular upgrades and we manage it for you, Mr. client. For the middle tier, on the other hand, the ones that are just slightly too big to be operating on a SaaS model, then the real benefit is what I've just mentioned, these partial upgrades. You can take innovation much quicker, you don't have to wait for 2 or 3 years, you don't have to build your own legacy, your own customization because you can't wait, now you get the new enhancements from Temenos much quicker. And of course, again, the Tier 1 and Tier 2 banks, largely an untapped market for the third-party vendors such as us. We want to be able to offer them those individual microservices and enable them to start this transformation. Again, we want a bigger piece of the pie. There's -- besides microservices, I don't have time to -- Mark mentioned, this is a 77, I think, enhancements across the product range. I just wanted to highlight a number of other things, because it's not just about microservices. Today, the market conditions are very tough for banks with their retail clientele. It's very difficult to make any money with retail clients so we see a lot of attention back on SME and corporate banking. So we've been investing heavily end of last year and beginning of this year into corporate banking, which, admittedly, we hadn't been doing for a while. So we are now back in business. We have a very strong competitive offering. We have very positive feedback from prospects compared to -- even compared to best-of-breed solutions. We are winning some deals against the old established players in this market with this new offering that we're building around corporate lending and corporate banking in general. So this is very exciting because, again, retail banking has tough conditions, so we see a lot of traction in this market. So on retail banking, well, we already have a very strong offering. So we basically, year after year, we keep building upon that. In the background, we are replacing the entire architecture, changing the architecture. But from a functional perspective, we just keep adding and incrementing the capabilities of the software, in particular, around pricing. And last but not least, we're leveraging the acquisition of Kony, even for the core banking. So we are using the great Kony technology to enhance the way we present the software to the users of the system, to back office people. Because nowadays, the trend is very clear, back office people need to do more with less. So they need to process more transactions, they need to be -- they need to work -- to provide -- to exhibit a lot more productivity, but how can they do that? So we're investigating a number of things such as robotic process automation, such as artificial intelligence. But right now, we're also thinking about what the users do in their daily jobs, the manual tasks and we want to help them with that with new user agents. And again, the feedback we get from the few prospects that have seen the very first prototypes are very promising. That's it for me. I think I was the only person between you and the break. So Adam?

Right. We're going to stop for a quick coffee break, caffeine injection, for 20 minutes. If everyone will be back in the room at 11 a.m. sharp, and we'll move on with the next session. Thanks very much. [Break]

Welcome back, everyone. I hope you managed to grab some coffee. I would like to introduce to the stage, Colin Jarrett, our Chief Cloud and Delivery Officer. It was announced yesterday evening that Colin has joined our Executive Committee. Colin's background, he came from Accenture, joined Temenos and is running development, been running our cloud operations and made a major impact on that. And now very proud that he's stepped up and joined the Executive Committee. So I'll hand over to Colin to run through our SaaS and Cloud section. Thank you.

Thanks, Adam. Hello. So it's Colin Jarrett. So promoted yesterday to be the Chief Cloud and Delivery Officer. And I'm incredibly excited about the opportunity, but let me explain why. I think this year, we'll see a real transformation in both our company and in Temenos -- sorry, in Temenos and in the market. Now that's something you hear quite a lot. We do a lot of transformation. We say this is going to be the year. I think this is the year when we will see more cloud deals than on-prem deals. Cloud will be the predominant part of our business in terms of the number of deals that we're doing. That's transformational. I think this will be the year when in the U.S., we will have a bank go live from signing in 90 days. So a new bank, new digital bank, launching 90 days from signing. I think that's transformational for the banking industry. Yes? And it's a huge privilege for me to be running our cloud operations during this year. You've seen lots of slides today. You've had a lot of information to take on board, yes? I think there's really 2 messages I want you to take away from the slides we're going to go through, yes? First one, unprecedented level of growth. When you saw Max's slides earlier, we said, "In 4 years, the cloud business has delivered the value that it [ has turned out ] to deliver in 19 years." I think that's unprecedented, yes? I think then when you look forward and you start saying, "What about demand?" I think the demand for SaaS is unstoppable, yes? When we look at, it's not a vision, it's not an idea, it's a proven concept that banks are now spending money on and are hungry for, yes? It's a transformational year, unprecedented growth, huge opportunity. They are the messages from the slides I'll go through now. Okay. A quick recap. What are we talking about [ with stats ]? We're talking about bringing the power of cloud, combining that with the power of the Temenos' products and putting that into a package, which is hosted and operated by Temenos. So we're talking about cost efficiencies, we're talking about operational efficiencies being delivered to our clients through cloud, through our products throughout our Temenos operations, okay? You've seen pictures like this before in some of the earlier presentations. I think the idea of the winning combination that Max talked about earlier, it's the extensive product, it's the 25 years building out feature and function that really can't be rivaled. It's about the clean architecture, the future-proofed architecture that is cloud native, API-driven through continuous deployment that can't be rivaled. And then on top of that, it's now building in the operational expertise within Temenos and the partner ecosystem, again, makes this an absolutely category-killer for -- and kind of the reason why we're seeing the level of growth that we're seeing at the moment, yes? So I think from a SaaS offering, no one can touch that. We compare favorably. I probably would have said it a little bit stronger. This is the unprecedented growth. You saw something quite similar from this earlier from Max, yes? And that'd be kind of the one image or one impression on everybody as they leave the room, yes? In 4 years, we achieved what it took Temenos 19 years to achieve with the on-prem model, yes? 42% of new deals are now on cloud. I expect this to be the year that becomes above 50%, transformational in the way we think about our deal structures. 68% ACV growth, yes? It's the real driver behind the business. But I would also echo something Max said earlier about this being additive, yes? When we look at it as a combined business, we see this as growing the overall footprint, growing the overall customer base as an additive service. The other part on this is, whilst we're growing at this rate, it's become very important that we're investing in building our internal capability, yes? There's always growing pains when you're growing at this sort of speed. So investing in our operating capabilities. Increasing our headcount in our operations by over 100% last year. Building out our central command center in India with specialists, dedicated resources in T24 inside and out and understand how to operate it using that capability. Investing in improved tooling, improved automation so that when you run a COB, the pre-COB, the COB, the post-COB, all automated functions that don't require manual intervention. So investing in the operational excellence whilst we're growing at this rate is something that we've been doing proactively, we continue to do and is, again, something we'll continue to invest in during 2019 (sic) [ 2020 ]. We bought Avoka and Kony. That has brought with it many good cloud skills. They are cloud-native companies, and that has expanded our overall capability. We now have 5 different regional centers based on the acquisitions that we're taking on from Kony. So we're in Australia, within Latin America, within North America, we're in Europe and with our central command center in India, there're 5 centers in total. That's kind of the growth story. Well, the other thing I said was, yes, the demand for SaaS is unstoppable. We see $21.5 billion of SaaS spend already. Projected growth rate 22%. 15% of bank applications are already on the cloud. This isn't an idea. This is proven. Banks are adopting this now. We see that with the greenfield banks. When -- the banks are getting difficulty implementing because of their spaghetti, because of their legacy, a drive towards greenfield, and in greenfield, a drive towards SaaS, okay? If we take a bit of a deep dive and say, "Okay. We understand globally that there's a demand," from a strategic point of view, we see specific opportunity within the U.S. market. And when you look at the U.S. market, we see interest rates are low. We have a low interest rate environment, which is driving cost pressures, yes? So from a manufacturing perspective, reducing the cost of manufacturing of products, critical in the U.S. We see new entrants and new digital banks and the acceptance of digital only. We see the rise of the FinTechs, adding additional competitive forces in the market. And on top of that, you've got the specifics around the U.S. regulation. So we see a global market that's driving towards SaaS. And in the U.S., we see a perfect storm of cost pressure, competitive pressure, regulatory pressure. And to resolve this, we see that the industry needs a fast, flexible, future-proofed, low-cost offering to help new digital banks launch quickly. So we're incredibly pleased to announce on 21st of January our new U.S. SaaS model offering, which will allow customers to go live in 90 days from signing. How do we achieve that? First of all, it's preconfigured for the banking landscape in the U.S. So we come with a preconfigured model ready with U.S. It's a front-to-back model, so it's rich in functionality. It's out of the box. So it's coming back to that point around being preconfigured. It's fast. Time to market is critical here, yes? And we're able to continuously update it. So the future-proofing and rollout of new functionality as we continue through our Temenos continuous deployment processes allows us to constantly update our clients on this model bank. It has rich functionality from day 1. We have the checking accounts, savings accounts, the things you'd expect to find. In addition, we have onboarding functionality, allows us to onboard new customers in 3 minutes. But not only do we have that functionality, we will then expand it with new functionality that will then be delivered through our continuous deployment so that we constantly keep refreshing and updating the U.S. offering. So what we're offering is the best technology with the best service provider for a U.S. opportunity, where we can roll out in 90 days from day 1 for greenfield banks. We think that's going to be a major competitive advantage and an industry changer in the U.S. That's all I wanted to cover in this session. I'm going to hand over to Tony, who's going to talk about technology. Thank you.

Thanks, Colin. Morning everyone. My name is Tony Coleman and, indeed, I'm going to talk about technology for a few minutes. So the technology that we're talking about today underpins everything that we do in our software landscape. So it permeates every single piece of the software stack. It's not just Transact. It's not just Infinity. It's across everything. And just to drill in a little bit on some of the words. So we're cloud-agnostic, meaning that we give our customers the choice of which clouds to run on. We're cloud-native, meaning that we leverage the managed services, and the architecture is designed to run in the cloud. And we're distributed multi-cloud, meaning that you can not only choose which clouds to run on, but if you choose to do so, run active-active across clouds at the same time. And all of that is on a loosely coupled, event-driven microservices architecture. Why do you need all that? You need all of that, and you'll see in the demos in a minute, banks need technology to deliver an exceptional customer experience. So what does that look like? So not only do you need a best-in-class core product engine with its loosely coupled, event-driven architecture, you need that supplemented and indeed designed and embedded with AI, be that explainable AI or RPA. And all of that rich functionality, every single thing you need to be better exposed is APIs. Not only do you need that, you need a distribution platform that's going to take all of that rich functionality, enhance it with distribution services, again exposable through APIs, and leverage AI again to create intelligent services, so pulling all of that together. All of that AI needs to be powered by data. Training those models needs data. That's where the data lake comes in. Not only that, you need to pull all this together to the channels using a multi-device omnichannel platform, so you can pick up on one device and carry on, on another. So this is banking. It's a highly regulated industry. You need to be able to do this in a proven, performance, secure way. And not only security, not only operations, but continuous, so that we keep the platform evergreen, the health is guaranteed, we're constantly patched as and when it's needed. And all of this to give platform choice and to drive through the analytics and reporting the risk that you need in this industry. And that is all available from Temenos. Because it's all API-driven, every single piece is fungible, but out of the box, as Colin was talking about, front to back, that's there. It's all wired together through our API-first methodology. Running that software together gives you the choice. As I say, the cloud-agnostic piece gives you the choice to run on different platforms. We've added in Ali for the [indiscernible] '20 release. And also looking on the cloud-like, on-premise solution where you can take the same containers, the same service architecture and deploy it on-premise in a cloud-like environment. And we've added in support for OpenShift on the OpenShift container platform, and that runs on Z as well as commodity hardware. Multi-cloud is great. It gives you the ability to run with the highest-level SLAs. It means you can meet a lot of regulatory compliance issues that you can't do when running on a single cloud. But there is an issue of manageability. So this is where we're looking to solutions like Google's Anthos or VMware's Tanzu, where you can run exactly the same software, single code base, updated, patched, pushed, managed from a central pane of glass and, again, giving our customers the choice of which platform and which solution to go with. So in summary, our technology permeates absolutely everything that we do, and it's available on a variety of platforms, which the customers choose. It's available, cloud-native, using the managed services that you'd expect from any well-architected cloud solution. It's cloud agnostic, giving you the choice -- our customers that choice. But also, back to the platform choice for on-prem, we continue to support the traditional applications over deployments but with a look to distributed multi-cloud to be able to run simultaneously, distributed across multi-cloud, active-active. So no DR testing, no downtime because you fail over, the data is there in multiple clouds. And all of that backed by, within the solutions themselves, a loosely coupled, event-driven architecture, which means you can deploy and swap out, upgrade independently any of the components that we've been talking about today. And with that, I'd like to bring Prema on the stage to talk about data and AI.

Hello, everyone. This is the last 10-minute session from product leadership team from -- with a slide deck, particularly. After that, I'll hand over for the demo. So I think it's apt that we wrap up the session -- the product session with data and AI. We talked so much about the feature function, the capability, deepening and broadening with Infinity, Transact, Funds and everything that we do. But no digital transformation is complete in a bank until the bank leverages the insights that they can derive from data, analytics and AI, particularly. You have heard a lot from us before about data and analytics, what we do there. So I'll drill down a little bit in detail on AI, where we are with -- after the Logical Glue acquisition and why explainability of AI model is something we have focused on so deeply. In a regulated industry like ours, explainability is the key. I'll explain a little more on why it is so important and what we are doing about it. So the opportunity statements here. Banks are struggling to come up with new use cases that can increase their revenue stream, right? And they have a great opportunity right now to consolidate information about customers, thanks to open banking. There is an opportunity to collect data from other banks about a customer and to understand the financial health of the customer more holistically. But it does give the opportunity for banks to then tailor the products and services that are required by the customers, understanding their needs, understanding their -- the life events and then to be able to cross-sell and upsell. So customer retention, that's absolute key. And doing that in a highly personalized manner, you need AI. You need an explainable AI platform. That's what we try to achieve through our capabilities collectively with data, analytics and AI. So how do we do that? It's through 3 of our products. You know Temenos Analytics solution already, Temenos Data Lake solution, and with the Logical Glue acquisition, we also have the explainable AI integrated fully with the complete product set. Our value proposition is quite simple and straightforward. It is to enable digital transformation in a smarter way, in a faster manner and also in a cheaper fashion. Smarter, why? Because the customers' behavior is changing. The demands are changing. There is so much pressure for the banks from the industry, from the rest of the challenger banks and the way that the marketplace is opening up. Solutions have to be smarter. They have to be adaptable. They have to be adaptable to the changing needs of the customers. So that's why the solutions have to be smarter, and the smartness comes only when you apply artificial intelligence. It has to be faster, which is what we focus on in training and building these analytical capabilities; understanding the structure of data that comes in, both structured information, unstructured information that comes in from so many channels now and then to be able to derive those insights; understanding the problem that a bank is facing; trying to understand if a customer is about to leave, what should be the next best product to sell to that customer; or a profitability analysis or a risk analysis, right? All this is prebuilt with the banking information, banking knowledge, and that is readily available for banks to implement. They don't have to actually do this job, right? We put this together for the banks. And to be able to deploy that at low cost. Tony talked about the technology choices, the platform choices. It's all about simplifying implementation and cutting down the cost of running the software. Cost of change is high. Cost of operations are high. So banks have to do this in a cost-efficient manner. And that's an absolute mandatory requirement these days whenever we build our software. So we make sure any new capability we bring in, any new software that we add to our product set, it's actually built on those principles. So this is pretty much how the landscape looks like for us. We suck in all the data from various product sets. We talked about Infinity, Transact, financial crime and fund management. We don't restrict the data sources to Temenos data sources. This is the key point. Because we operate in a very complex landscape, we do understand we have so many other systems within the enterprise that we need to work with, and that has got more valuable information as well. We need to suck all that in. So the Data Lake solution is an agnostic solution in that sense that it's not specific and integrated only with Temenos data sources. It also sucks in data from other data sources within a bank. And it takes care of all of the data requirements. For any bank to run proper analytics, to derive the insights, the data has to be clean. The data has to be purposeful. The data has to become useful before it can be used. And I think when you have a spaghetti-like architecture, when the systems have been grown in-house and aggregated over a period of time by taking off-the-shelf products from so many vendors, it can get really complex to get the right value out of the data, to even get the right data out. So this is what Data Lake source, data collection, aggregation of data, cleaning of that data, preparing the data in such a way that the analytics -- analytical models and the AI models can run effectively and to generate insights out. So that's pretty much the whole stack. And we take care of the prebuilt models ourselves, so the banks don't have to build these pipelines themselves, right? Everything from the data models to the adapters to connect to different data sources, to the analytical models, to the AI models, which have been trained, is prepared by us. It's built by us. It's deployed by us. It's supported by us. It can be upgraded by us, right? That's what this is about. That's how we take care of the data requirements, which banks are finding a massive challenge with and also innovating with that data. So this is our competitive position on analytics. I won't spend a lot of time on this. The fact that we are the only vendor to have about 100-and-odd different prebuilt analytical models, analyzing customer information, product information, transaction data for retail, corporate, wealth, across segments and then do this analysis for different purposes, risk, profitability, just analyzing the journey, to optimize the use journeys, that's not something we find in the market at all, right? And then to be able to integrate that with the rest of the product set and to deliver these insights that we generate out of the analytics into the right -- at the right places in the -- during the decision-making process, that's our differentiator. For a bank to actually put this all together with off-the-shelf products, it's immensely difficult. I mean none of them have been successful just taking care of a data warehouse project, let alone deriving this kind of insight and embedding that into the places that are required. This is our competitive positioning on Data Lake. I think it's very common for people to think that there are so many data warehouses and data lake solutions out there, what can Temenos do that is different to what these people are doing? Can they be more sophisticated? The answer is truly yes. The fact that we are able to collect so much data, not only that, it's about getting the data prepared for use into those analytical and AI models, getting the data models for the banking objects, that is a massively complicated exercise. There is so much banking IP that is required, knowledge that is required to -- that goes into this process, which we have, which we have built already. So that's what -- that's one of the key differentiators for us. There are so many banks who are in this data lake transformation journey. They haven't even gone to the stage of actually collecting data from 10 or 15 of their systems, let alone the 400, 500 systems in a big tier 1, tier 2 bank, right? The second problem they face is the quality of the data. They can't actually really get a decent information about their own customers. The data is duplicated. The data sits -- it's fragmented. It sits across so many systems. How can you rely on that kind of information to generate the useful, personalized offering to a customer? Impossible, right? Those are the problems we're trying to solve with the data lake solution, which is prebuilt with our software, right? Massive differentiator. With that, I'll get into AI, specifically because that's something relatively new. Why AI is better? Why is our AI better? The characteristics of any AI platform have to have these in mind. One is about personalization because when AI gets involved, we are talking about a self-learning, autonomous way of looking at data and generating insights and to be able to take some decisions automatically and actions. So the platform should have wide-ranging algorithms to take care of different types of predictions, classifications, segmenting information about customers, understanding the behavior of the customers' transaction, right? That is prebuilt in our platform. That's what we have been focusing on. Adaptability, the self-learning nature, the way the customer behavior changes, the algorithms also have to adapt to it. That's another key factor. All this is good. But because AI is self-learning, it's not rules based, how do you know that it has not learnt a bias? How do you know that the decisions that it takes are accurate? Trust it -- we can trust it enough to actually run all of this in production. This is the question banks are facing and that's why explainability comes in. I'll explain in a bit about how we do that. All of this is done with lots and lots of data. Therefore, the solution has to scale. As banks grow, as their volumes grow, as the channels through which the customers interact with the bank grows and the data point keeps multiplying, the systems have to scale. This is where the technology choices come in. Ours is a cloud-enabled solution. Automatically, we take care of the scalability problem, auto scalability problem. Bank only pays for what they use. They don't have to over-allocate resources for storing data or computing with that data. And the most important factor is, it's okay to have a great platform. A bank can put all this together on their own, but how do they integrate and take these insights and actually embed that into a user journey in a particular retail banking app or provide this information to a call center operator? This is where we come in. Because we have the complete product set which is pre-integrated, embedding these capabilities as part of our platform has given that ability automatically for us. So this is what we have been working on, and there is a road map of all the AI models. So we have now an explainable AI platform where all the decisions taken by the AI models, all the output that is generated out of the AI model are fully explainable, explainable in a way that a human user can read and understand why that decision has been derived. Not only that, they can interact with that decision, and they can change or override the decision if needed. This is a key differentiator. We have been focusing on credit scoring and improving the efficiency of the FCM decision-making processes as well. There are quite a few other use cases in terms of providing personalization, understanding the lifetime value of a customer, understanding what's the next best product, classifying the transactions, predicting what should be the next -- what could be the next transaction for a customer and then fine-tuning the products and the services that a bank offers to the customer. These are trained by us. And these models are available as packet software, and they are integrated with the distribution services in Infinity. So this is how we provide that type of personalization that Brian was talking about. It's now a feature for us as a standard in Infinity, right? Quite a few other models which are in the road map. I won't get into the specifics of it, but you can see it's a very healthy road map. On this one, I just wanted to highlight how the distribution of the AI capabilities look like because it's often easy to think that AI is more to do with just the customer experience and engagement and nothing to do with the back office or the core banking or the manufacturing side of it. Actually, it is not. If I just take an example of the product pricing capability, right, it's -- it can be completely transformed using AI and a data-driven approach. Banks don't often actually look at their products and try and simplify their products. Rarely they do, right? And if products are being treated that way, pricing structures are even worse. They don't even go near the pricing structures because they have a fear of value destruction if they start looking at their pricing structures. But treating it in a completely data-driven manner, understanding the customer's lifetime value, understanding the profitability of the products, understanding the overall -- the holistic nature of the financial health of the customer and then coming up with the right products and the services that can be bundled for a specific customer group or a customer itself, that can be path breaking. That's what we are working on. All this requires a lot of information data. So we are working with a number of banks who can provide us with the data and also help us actually fine-tune these use cases, but this is quite transformational. AI in manufacturing can be as effective as personalization on Infinity or front office can be. Okay. A little bit on explainability. Why is explainability so important? So as I said, AI is our -- AI model is notorious for being a black box model, right? Because AI model improves as it sees more and more data. It learns from more data that it sees. It's very difficult to understand how that learning has actually influenced the decision-making over a period of time, right? So explain -- without explainability, it's very hard for banks to be able to trust the model with massive decisions like credit scoring or credit underwriting. Banks should be able to explain why they have rejected a loan, why they are accepting a loan and why an AI model came up with that specific score. And this is where explainability comes in, and this is why our unique, patented solution is so much different from what we see in the market. Traditionally, the explainability is being -- has been done as an after-the-fact explainability. So a decision has been arrived at, and then based on the outputs and a bunch of inputs that were captured at that point in time, some techniques are available that can explain how potentially this decision or the output could have been achieved. But unfortunately, that's not accurate at all, right? Explainability has to be more intuitive, and it has to be intrinsic. And we use a physiologic-based algorithm, which completely transforms the way we can throw that explainability back at the user and say, "These are the inputs. These are the factors that resulted in this decision, and this is the weightage the model has given to that decision." And not only that, we allow the user to actually go and interact with it and change that weightage, change the factor and improve the decision-making and then model learns back from that. So that's why we are uniquely positioned. And we have made the -- done the analysis on explainability with other vendors who claim to do explainability as well. And we have found that some of these techniques are, as I said, not really transparent. They are not fully explainable. It's not fully human readable as well. Most of them are best guess. That's not good enough for a highly regulated industry like ours. So I'll leave you with just some value statements. I'm not going to read them out. But there is a significant improvement banks can achieve by applying AI into improving the efficiency and reducing the cost and also providing hyper-personalization that cannot be done in any other manner. So you will see Temenos investing a lot more in this space. You will see us building some of the capabilities through AI-driven solutions and not in a traditional manner. So with that, I will hand over to Holger who can show you some demos of our software, particularly on Infinity. Thank you.

So thanks, Prema. I have here my colleague, Ed, with me who will support me in that part of the day where we want to show you 3 different customer use cases that illustrate how customers of ours use our software to actually achieve and overachieve their targets. And we have picked 3 examples that represent different geographies and, above all, completely different types of banks. So the first one is Partners Credit Union. And with this, I will hand over to my colleague, Ed.

Thanks, Holger. So a little bit about Partners Federal Credit Union. So this is a U.S.-based customer. There are about 10,000 financial institutions in the United States. The vast majority of those institutions are small banks and credit unions. Those credit unions serve a very specific market, a very specific membership. Those could be employees of an airline. Those could be construction workers. Those could be very specific to a university, for example, and the list goes on and on. Partners' members all belong -- are all employees of Disney. They're what's called the Disney Cast members. And so these cast members deliver every day these magical experiences to the Disney customers, whether those are audience members, people who go to a Disney theme park, people who are buying Disney merchandise. So Partners specifically is a small credit union, $1.8 billion in assets under management. They're charged with delivering to a group of members that have very high expectations in terms of customer experience. However, unlike the big banks, they don't have the budgets of the Chases or the Bank of Americas of the world. So they have to deliver on a much smaller IT budget. Now as Max mentioned, this is where Temenos is uniquely positioned to deliver these tailored experiences. What Partners has done is they've taken the Infinity architecture and the Infinity retail banking packaged application and are in the process of delivering a number of other solutions to deliver this tailored experience to their customers. And the way in which they've done this is, they've taken on all the development themselves, and they've released in a very agile fashion to their membership. So let's switch over to a live demo now on my device. And before I launch the app, one of the things you'll notice, as I launch it, is they've really kind of put their own little touches into the application, right? So things like animation and a very personalized experience that's based on the geography. So you'll notice, as I launch the app here, we have this nice animation. These are all things that are enabled on the platform as part of Infinity that we build applications on. In this case, this is a native mobile application. One of the next things you'll notice that they very much tailored to their needs, even though they're built on a packaged application, is something called Relationship Rewards. This is a very specific value to their members where they can see their tier of loyalty, for example. In this case, I only have a standard tier, but I can open it up and I can see where I stand in terms of my rewards. So the more assets I have with the credit union, the higher my ranking gets, and I get a lot of benefits, discounts, better percentage rates on some of the financial products that they offer. They have all the functionality that one would expect from the Bank of America, and they have to. These credit unions are charged with delivering all the same functionality that a customer would get if they banked with Bank of America, Chase, Wells Fargo, et cetera. So they can do a transfer. They can -- they recently just launched the ability to pay a person. So what the large banks are doing with technologies like Zelle or Venmo, for example, they're able to deliver to their relatively small membership. They also have some unique advertising that's all powered by something that we call campaign management as part of the Infinity platform. This is all focused advertising, very specific and in alignment with the Disney brand, as you can see here. In addition to that, they can make mobile deposits, they can do bill payments, they can message the bank, get FICO scores, obviously, find an ATM, all of the functionality that you would expect from a big banking application, that they're able to, in a very agile way, deliver to their members on a very frequent basis. In fact, since they went live with their latest version in August of last year, they've released 4 to 6 versions of the application very, very quickly. If you go back to the slides. So results. So as I mentioned, since they launched their application in August, they went from a 2.2 star rating in the app stores, both iOS and Android, to a 4.6 star rating. So this is a very big deal for a customer -- any customer of Temenos when they launch an application is this drives the level of adoption that you see. So if you have a satisfied customer, less risk of adoption. 80% of all noncash transactions are performed through the digital channel, obviously, reducing operating costs. They had a 16% approximately growth of mobile users in 2019. This is a very big number. And as I'd mentioned, they release very frequently, and they're able to do this because of the Infinity platform, so 4 releases in 4 months. And they've added a lot of functionality with each of those releases. One of the ones that I'd shown is that payments functionality. So our next customer is HSBC. Back to Holger.

Yes. So our next customer, as Ed mentioned, HSBC, completely different type of customer, different size of bank. And HSBC launched a program in 2017 that was aiming towards offering all their products online to their customers. So when launching this program, they had 4 principles in mind that they wanted to see fulfilled. First one was rapid time to market. They wanted a solution that is able to push that plan forward quickly. So that lead it into the next decision. A handcrafted development from scratch is probably not the best solution. So that lead it into the decision for a platform solution that brings out-of-the-box, ready-made capabilities that can be used as an accelerator but, in the same time, provides all the flexibility to make these journeys -- the HSBC journeys as it is required by their guidelines. It also needs an openness to be connected to the FinTech ecosystem, to third-party providers of services. Whenever it comes down to customer origination, customer onboarding, you need integration of fraud detection, you need integration of scoring, you need integration of ID verification. And in the end, all of that needs to result in an outstanding customer experience. And customer experience is not only the look and feel of the application. It's not only the graphical design of the screens. It's the behavior of the complete application, how the customer interacts with it, how immediate the feedback of that application is towards the customer. So on the next slide, we see here -- my colleague, Ed, volunteered to apply for a credit card. You can see here he's filling out here the application form for that credit card, filling in his personal data: mobile phone number, address and identity information, which is then double checked against the entity or identity provider to see if that is real. In the background, we also run some KYC checks already. We get information back that we can then transform into a questionnaire where we present easy questions to the customer that only the real applicant should know. So that is an additional layer of security within the application process. Now that just leads into the third step, we need to gather some information about the employer. About salary information, which is obviously blanked out in this process as it is a real application for my colleague, Ed. And in the last step, you'll then just need to register for online banking, mobile banking, and your application will be processed straight through. So in less than 30 seconds, you will have an approved credit card application. So this part of the process is only 1/2 of the complete solution. The other half of the solution is how can we help banks to iteratively enhance the quality of these processes. How can we make them better? How can we drive a higher adoption rate, a higher conversion rate for their applicants? And therefore, we have an embedded journey analytics where you can analyze a given customer journey. And you will see immediately the KPIs: the bounce rate, completion rate, dropout rate. And not only you will see that on an overall origination process level, you will see that drill down into the various screens of that journey. And not only the screens, you can also identify the fields inside a screen that make customers hesitate or drop out. You have the metrics how long they take to answer that question. You have the metrics how many key strokes it takes them to fulfill that answer. You can filter that down further to figure out, are there any differences in between the different device types. Does our application behave differently in the web than on mobile phones? Does Android users have more problems than iOS users? You can also drill down into a timeline that gives you, in a monthly drill down, the metrics of that process where you can see how your drop-out ratio, completion ratio develop, and you can then further filter down into, I only want to focus on my conversion rate to be able to see if that is going up or down, which we'll see in this part. And in the last part of that section, you can see the average time it takes users to answer the complete questionnaire and to fulfill the process. So how you can make use of that, I will give you an example. One of the first questions in the original version of the application process was an invitation reference number. So HSBC was sending out invitation reference numbers to their clients with the objective that if they enter this reference number, they would come to a prefilled page where all of their data is already filled in. However, it turned out when they looked into the analytics, that 4% of clients dropped out on that field. And that probably resulted in -- they were thinking, I need an invitation code to proceed. As I don't have it, I drop out. But that was not the purpose. But by knowing this information, HSBC was able to simply skip that process, and that results into 4% higher conversion rate. Now 4% may not sound that impressive. But just imagine you can identify 10 of those fields that cost you 4% conversion ratio. I think that is an outstanding result of how you can make use of the embedded journey analytics and how it helps banks to overachieve their targets. So with that, HSBC was able to multiply the origination volume, 4 to 5x, and they were even over exceeding their own expectations by more than 50%, resulting into 75% of all applications are processed 100% straight through without any kind of manual intervention. And remember, when I said in the beginning, it was very important for HSBC to have a very short time-to-market and a platform that still allows an agile and flexible approach. I can give you another example of that. On a Thursday, basically, today, HSBC decided they need to change one of the journeys. They wanted to introduce a new FinTech into that journey to make it more comprehensive and better for their customers. So on Thursday, that idea was born. So we helped the bank to design the new process -- the adopted process to integrate that FinTech provider to prototype the new process, to implement the new process, to test the new process and to go live that new process on Monday. So basically, 4 days, including the weekend, it took HSBC to completely integrate a new process step and to be live with an enhanced version of their credit card journey. And I think that is an outstanding result. And with this, we move on to our third example that we want to give you, which is Credit Union of Australia. It's, again, different type of bank, completely different geography. And Credit Union of Australia is, again -- is slightly bigger than partners, but is not one of the dominant players in the Australian banking market. Australian banking market is dominated by 4 major banks, so they had to have a different strategy in mind. They couldn't simply outspend those 4 banks on innovation. They needed to out-innovate those banks, and they came up with a plan to tackle 3 areas that are important for them. So the first one is customer onboarding. Second one was customer servicing via a mobile banking application. And third is a new type of personalized customer relationship via chat that they implemented as well. And they have chosen 3 different vendors for that to implement it. And now it happens that all of these vendors are part of the Infinity platform. So basically, they implemented Infinity even before we had it. And here, you see the account opening journey. It's a little bit more simple than the HSBC one, and it also comes along with FinTech or third-party integrations. So whilst we are typing here, we can see that there is an address lookup service attached from Mastersoft. So it fulfills the address when you start typing. And on the next screen, we then have, again, integration with identity verification. In this case, we use greenID in Australia to verify the passport data. And when that step is done, you simply need to double check if everything is correct and submit your data to the bank. So when you are a customer, what happens next? Next happens that you most likely use your mobile phone to do your daily servicing. And this mobile phone application is actually based on the very same platform as the Partners' mobile phone application on the Kony Quantum technology. And it comes out of the box with a lot of features that help a bank to accelerate the process of go-live, of offering that services to their customers. It starts with accounts and transaction details and ends with Samsung, Google, Apple Pay integration plus, and that will be the last part of the demo, the integration with the unique chat solution. So here, in this part, we will log in with our Face ID. We will see the account overview, and we can drill down into a specific account. We see the transaction history, and we decide we want to initiate a payment. And this payment is a third-party person that I can create as a payee on the fly by just entering his account details, I can then use that payee for my payment. In this case, I transfer AUD 10 and review the data, submit it, authorize the transaction with a 2-factor authentication, and now it comes. And then this transaction is being executed in realtime again. So, so far, we have seen standard functionality that is expected. Nowadays, you need to have that as a bank. And now we move on into the personalized chat solution. Okay. So here we start. And this is a WhatsApp-type chat embedded in the banking application. And this WhatsApp-type chat allows a customer to initiate a person-to-person communication with an employee in the bank. And the first thing you do is when you log in, you can pick the agent that you like to interact with. And these agents, you typically pick based on your interest, based on the product area you want to select. In this case, we have picked Sarah. So Ed introduces himself and Sarah writes back, and you will be surprised how sticky customers are with their personal agent. 92% of clients would rather wait until their agent is online again before they start chatting with another person. So this is really a person-to-person relationship that builds up based on this technology. So basically, Ed here is introducing himself and asking if they have any recommendation for products that could give him a little bit higher interest rate. Sarah comes back with 2 different product recommendations she could do for him. And he decides that he would want to have the product that gives him 2% interest rate, and he would like to invest $90,000 from his savings account. And by just instructing Sarah, my other chat solution, everything else that is required to set up this product can be initiated by Sarah and this is a very, very efficient sales tool. So in the end of the conversation, Ed just says goodbye, and we can move on to the summary screen. So by introducing this service, CUA was able to really increase their metrics. So there was a 40% growth in mobile banking adoption by introducing a better mobile banking application. 220% increase in payments via mobile. Out of their customer base, 20,000 customers are active users of the personalized chat solution, we call it Engage, and they're aiming to use -- or to service 50,000 customers in this year. And also, in average, the number of products that customers have is increasing from 1.9 to 3.1 products per person when they are active, engaged chat users. And as you can see here, when you are able with one single agent to outsell 8 branches in a week, that is actually a fantastic return on investment. That is really pushing new boundaries. And whilst I talk about return on investment, I would like to thank you for your attention, and I would like to hand over to my colleague, Kanika, who is introducing the Temenos Value Benchmark.

Thanks, Holger. So all morning, you've been looking at the product offerings that Temenos has for the market. And I'm going to shift the focus a little bit to the tangible business value that these product offerings bring to our clients. And with that in mind, I'll introduce the Temenos Value Benchmark. We all know, we've been talking about the disruptive technologies that are having such a profound impact on the industry. They're leading to the twin trends of digital and open banking, and they are changing the very structure and value chain of our industry. What is happening is, as we've been talking about new entrants coming into the market, FinTechs, technology players, but coming in at a cost/income efficiency ratio of 30% or thereabouts, which is an order of magnitude lower than incumbent banks. Historically, banks have under-invested in IT. The operative word here is investment. Although banking IT spend at 11% of revenues is significantly higher than other industries, 2/3 of that goes into just keeping the lights on, keeping the systems running or on nondiscretionary regulation. Only 1/3 is spent on true business value add, growth and innovation. Banks are still running legacy systems. They have built a lot of complex modern systems around those legacy. They are hesitant to replace that legacy, not just because of the perceived risk or the business disruption to the business, but because it is very difficult to justify a business case for a multiyear transformation where there are high initial investments and late accruing benefits often many years after the program goes live. Now the disruptive technologies are changing that, but this is a big challenge for banks. Finally, banks have not had a great track record of business and IT alignment when it comes to transformation. Historically, a lot of big transformational projects have failed because they were IT driven and were not sufficiently sponsored by the business. This is also changing quite a bit today. Today, most technology transformations are sponsored and driven by the business. So what that means is that in today's world, banks need to understand and have a strategic and very clear view on the value that their investments in technology will bring them in a way that was not as important before. Never before has it been so important to really understand the impact from a cost/benefit perspective of your IT investments. And for Temenos, we need to engage with both the IT and the business leaders at our clients in a way that has reached new proportions. We need to be able to engage with the business and really explain to them what is it that our solutions truly bring. Banks struggle even today to answer very basic questions about around their IT investments on the returns they should have, could have and indeed have brought. Senior banking executives today really need to understand the impact of IT to understand how to prioritize their investments, how to think beyond the short term to build 3- to 5-year plans. And they struggle with this. I have personally been involved in a business case where the CFO insisted on only including the operational and IT cost savings, no revenue-related drivers were considered. So the business case that came out was not an accurate picture of what the investment could actually bring. With that in mind, we've launched the Temenos Value Benchmark. It is a strategic program whereby we, together with our clients, explore the drivers of business performance. We better understand in banking, what is it that really drives high performance, how does technology enable that performance and how well are banks doing compared with their peers and the best-in-class? Our clients' data is kept completely confidential, as you would imagine, in an exercise of this nature with strict terms and conditions. It's very, very sensitive data. Our clients literally open their books to us. We conduct this very collaboratively on-site, with strategy consultants who interview key stakeholders across the bank. In return, the bank gets a highly customized report with insights, trends, comparisons and recommendations. And we want to build a long-term relationship with our clients. So this is something that we would like to do on a regular basis, go back to the clients, either every year or 2 years or at a significant event in the bank's life, whether it's a merger or whether it's a significant go-live or whether it's a major upgrade. As a market-leading provider of mission-critical banking software, we believe that we are uniquely positioned to provide value through this program. We believe that we can help our clients really understand how and why they perform better or worse than their peers, and how they can improve in a more credible way than our competition or indeed, even the strategy houses. Why is that? Firstly, we can capitalize on our 25 years of banking domain experience. All relevant product directors in this room, whom you've heard all morning, have input into the questions. So the collective IP of our organization is reflected in the benchmark. Secondly, we have a front-to-back product stack, which covers the entire banking value chain. We have no competing or overlapping products, so our product map totally fits with the banking value chain and allows us to conduct a benchmark from the point of view of the bank very neatly. The depth and breadth of our client base, 3,000 banks across the globe, more than 800 running core banking gives us access to a very rich database, much, much richer than our competition. Even the strategy houses struggle to expand benchmark programs beyond the region because the devolved nature of their organization. We provide a truly global perspective with representation from all our regions. The methodology that we use is proven in the software industry. It is based on value life cycle methodology of business-led technology transformations around value discovery, value realization and value optimization. It was pioneered by Siebel many, many years ago, later adopted by Oracle, SAP and other ERP providers. We are not aware of any other competition launching a similar program so far. We want to capitalize on this first-mover advantage and build a really truly industry-leading program. Finally, we've heard about how data is such a competitive asset in today's world for our banks. By providing data-driven insights through this program, we actually walk the talk. The benchmark is structured around the banking value chain, not around Temenos solutions. We cover 8 domains. Six of them are part of the core chain, all the way from product management to sales and relationship to payments and to risk and compliance. And there are 2 supporting domains: analytics and IT. In each domain, we ask our clients specific questions on quantitative metrics, for instance, time-to-market or payments error rates, but we also ask them to rate themselves on a scale of 1 to 5 on the importance and majority of industry best practices. That's where our business domain knowledge comes in. And these qualitative best practices help us to understand why a particular quantitative metric is high or low. So for instance, commercially consolidated watch list in FCM. Is that something that drives false positive rates? Is there a correlation between them? The fact that we have qualitative and quantitative questions allows us to do that analysis. We are close to 50 banks in the program so far. And we -- definitely, we've got a lot of momentum with our existing clients as well as with prospects, and we want to double this in the next year or so. I mentioned that this is a truly global benchmark. We have covered many, many countries in all of our regions with adequate and a well-balanced distribution across all of them. We cover 3 banking verticals: retail, corporate and wealth. And we end up having very in-depth discussions with very senior stakeholders at our clients at the C-level and C minus 1 level, because we ask them questions, which are truly strategic to them. We've collected an enormous amount of data from a statistically significant set of banks, and that has allowed us to generate some very interesting insights. Let me explain and introduce some of them to you. This is the banking capability model in the age of digital and open banking that we believe describes the capabilities that a bank needs to differentiate. What we need is true differentiation and customer centricity on the distribution side of things, in the front office, and we need standardization and operational efficiency in the back office or the manufacturing side. And both of these need to be underpinned by analytics and AI. Now what the benchmark allows us to do is to really validate this hypothesis. And the numbers that you see here, you can look at them as almost the voice of the customer. So these percentages refer to the percentage of respondents that rated these capabilities very high, either 4 or 5 on a scale of 1 to 5, 1 being the lowest. So what we find is that 91% of our respondents said that front-to-back digitization and analytics is key. It's highly important for them. On the front office side, contextual user experience. Being all knowing, understanding the customers' interactions at every touch point, and consequently, being able to proactively produce personalized propositions and return was rated the highest by 93% of the respondents. 90% of the respondents rated having an adoptive and resilient operating model in the back office as very important. This is all about having in-built self-monitoring and optimizing and [ got the ] terms at the back in order to optimize your performance. And RPA comes in, in a big way. You'll notice that open banking is relatively low. And that is partly because of the true global nature of our benchmark. And in many markets, it is still nascent. We expect this to really go up as open banking gets adopted in multiple markets around the world. What we also find is that our top-performing clients significantly outperform the industry. So on cost/income ratio, the top quartile, the top 25% in our database had a cost/income ratio of 26.8%, which is really about half of the 59% global average across the world. And this is -- the number that I mentioned is also in line with some of the digital challenger banks and the neo banks that are coming in. We already have banks of a very good mix. These are not all-digital banks. This is a very representative sample of different types of banks in our client database that have this cost/income ratio. And similarly, on return on equity, the best-in-class have a return on equity of as high as 29% versus the industry average of 9.5%. If we look at how much of their IT spend is on growth and innovation versus keeping the lights on and/or nondiscretionary regulation, we find that our best-in-class, those banks that are the highest performing banks by cost/income ratio spend 51% of their IT spend on true value add compared to the industry average of 27%. We find that this is -- this leads us to the conclusion that Temenos solutions help banks to focus their IT spend on real business value add, and the greater the focus, the higher the performance. So Temenos can really invest in commodities, so that our clients can focus on differentiation. Here, we explore the relationship between a bank's financial performance and some of the operational metrics. So what is it that makes a high-performing bank different from the not so high-performing banks? What you see here are 15 operational metrics, they are not a random selection. These are the metrics that positively correlated with either cost/income ratio or return on equity in our sample. So what it tells us is that those banks that had the higher spend on growth and innovation had the lowest loan origination times or the lowest false positive alerts also happened to have the lowest cost/income ratio and/or return on equity. It's a correlation. It's not a causation, but it does tell us what is it that is behind these financial metrics in terms of operational drivers. These have been categorized into 5 groups. And these are intuitive, this is what you would expect. Innovation and growth is all about how quickly and cost effectively a bank can launch customer-centric, differentiated products or enter new markets very quickly. Customer centricity is about the omnichannel contextual experience that you can provide, giving greater convenience, relevance, responsiveness and reliability. Operational efficiencies, end-to-end optimization of both operations and IT from the front to the back. Risk and compliance, it's about managing enterprise-wide risk and again, very cost-effectively handling regulatory and reporting obligations. All of this underpinned by analytics. How widely do you use analytics to -- for managerial decision making across your enterprise and help that -- help -- and how that helps you to improve performance. From data, trusted data, both within the bank and outside the bank. Let's look at customer centricity in a little more detail. So there were 3 operational metrics: The percentage of digitally active customers, the percentage of front office staff on admin tasks and loan origination times that positively correlated with other cost/income ratio or return on assets. By virtue of this fact, we can say that high-performing banks have the lowest origination times. They engage digitally with more of their customer base, and they have front-office staff that spends more time on business value-add rather than manual back-office admin tasks. Then we went further, we said, what drives these operational metrics? What are the business drivers behind some of these metrics? So let's take the example of digitally active customers, and the use of a single rules engine and a single point of integration to channels. If we explore this further, what we find is, that those banks that have the highest percentage of digitally active customers also rate themselves the highest on this capability, the capability of having a single rule engine and how integrated their front-office channels are. This leads us to the conclusion with banks that have siloed channels struggle to engage digitally with more of their customers. Afterwards, although the benchmark is totally structured around the value chain, we are able to also analyze the Temenos footprint at this client base, and we've grown an interesting conclusion. One example of that is that those banks that run Transact-only versus the ones that run Transact plus Infinity or any module of Infinity as is our definition here, also fare better on some of these key operational metrics. So onboarding time is significantly lower when you have more of the Temenos stack. Similarly, the customers per FTE almost doubles. And the front-office staff is also significantly lower when you have a front-to-back solution from Temenos. What does the client get? They get a 100-page report, very detailed, divided into 3 sections. The first section is really the trends that I just shared with you. But what we do is we plot each bank on the trend, and we give them specific recommendations on their positioning. The second section is on quantitative metrics where we compare key quantitative metrics and ratios to the average, the top quartile and the bottom quartile in our benchmark. The third section is on the qualitative best practices where we compare each bank's importance and maturity against the top quartile, average and bottom quartile. Now these reports have been very well received. We have shared them with a number of our clients where we've completed the exercise. I want to particularly cite one example of a CIO, whereby the bank was reasonably good on cost/income ratio versus the benchmark, but they were spending only half the benchmark average on IT. They were also very low on the digital -- on digital -- digitization. And what we found is that he was able to take that report to his Board and get double his IT budget -- approval for double his IT budget and launch a digital transformation program at the bank. Another bank, which was a challenger bank, used the report to understand the full value of his IT. He had underestimated the amount that he was spending on IT, he had not included certain FTEs, and he then became very cognizant of the fact that as he was going to scale the bank from a very small base, he needed to watch out for costs. So there were 2 insights, 2 very different banks. One, a very established player, not so digital in an emerging market, and one, a digital neo bank. Now I want to talk about the sort of benchmark and how it impacts our own sales and go to market. In that context, we believe that the benchmark is a foundation for value selling across our enterprise. What we do is we build a database with the true metrics derived from our existing client base, clients that are mature on Temenos, that have been running our solution, and we use that to build business cases for prospects. Now the main purpose of value selling is to complement and reinforce our already very effective go-to-market strategy with real business impact messaging and to become trusted advisers in addition to just providing the software. It's about improving our credibility as thought leaders in banking. For existing clients, it could unravel new opportunities to sell additional solutions, so cross-sell, but it could also just encourage the client to upgrade or to use our software better, thereby improving the relationship. And for prospects, we build compelling business cases that justify the investment that they are about to embark on. Let me give an example of an ROI model and how we would build it. So a typical business case would have benefits from Temenos, the cost of the project and any other dependencies on the bank. The benefits from Temenos, we can derive directly from the operational and financial metrics that we collect from the benchmark exercise from the database. And we are able to provide very tangible numbers strongly justifiable because of the correlating best practices. These are essentially evidence of how our solutions enable the business and justify the financial benefits. So this benchmark makes it easy for us to build business cases that are not assumption-based, but evidence-based. Thank you.

Thanks very much, Kanika. Great. We're now going to break for lunch. If I can ask everyone to be back in the room by 1:30, please, for the afternoon session. Thanks very much. [Break]

Good afternoon. Yes. Good afternoon, everyone. Welcome back. I'd like to introduce our next speaker, Alexa Guenoun. She's very recently been appointed President of the Americas and Global Head of Partners. For the first time in a Temenos Capital Markets Day, she's joining us live from the U.S. in the thick of the action. So I'll hand straight over to Alexa, who's going to be in one of the screens there.

Hi, I hope everybody can hear me well. Good afternoon for you. I guess it's after lunch. It's great for me to be back here, actually in the U.S. except for remembering that you need to be up early, so I'm still on morning coffee on my side. But yes, been here, probably about 15 years ago, so it's really, really great to be back and back in this market. And I'm talking to you from Malvern, our headquarter, headquarter for the U.S. Hopefully, you'll be able to hear everything now I want to say about this great opportunity that we have for Temenos in the U.S. So really, if we look at where we are today and our growing presence, I mean there's no -- our strategy has always been very clear. We've always -- we've had a historical presence, but we've grown through acquisition. It is a market we cannot afford not to be in, obviously. So with the second acquisition we've had recently, I would say, the last year, 1.5 years, most significantly, Kony and Avoka, we now have about 700 people just in the U.S. So locally, it's about 50% more than we used to have just in 1 year, thanks to Kony acquisition last year. We are operating about -- in about 7 major offices. So that's where our people are based, that's where we run the business. And overall, the combined client base now is actually quite significant at over 1,300 clients. Obviously, there's always, as you would imagine, flagship clients that use different part of our portfolios, Citibank is one of them. Varo and Grasshopper on the digital front, obviously, also Credit Unions. Regions, you have Commerce Bank that everybody's heard about. Again, a big core client for us. Everybody's watching us, too, as well. So really, today, for us, this is a big presence. This is a large footprint. And that's why we are invested there to make sure that we can capitalize on the opportunity. Because the opportunity itself is actually quite significant. By every measure and every research you can make, you obviously know that it is the largest market for us. Almost half of the asset under management globally are based in the U.S. So again, very significant. And if we look at third-party software spend, again, the largest market, 2019 we were about 42%. 2020, we assume it will be at 50%. So definitely not something we can pass. 10,000 institutions in the market. So a large, large play that we need to be in, and it's very attractive. It's something that we want to be part of. That wouldn't be enough though. I mean we have a lot of market, and we have some large markets, obviously, historically, Europe. It has to be sustained by strong drivers for us to be interested, obviously, and to make a play in that market. And they are very strong drivers that we see in the U.S., some of them are specific to the market, other are quite close to what we see elsewhere. But what we see really is around 5 drivers that will impact what we can basically drive out of this market. The first one is around deposits. We know that all the banks now are trying to protect a deposit, share of wallet. So obviously, protecting customer acquisition and increasing this. Making money for them is becoming very challenging. So the pressure really is to grow -- is on growing deposits, and growing deposits at a lower cost, obviously, is that also something that everybody is very mindful of is in this day and age What we also see, which plays very well to terminal strength is the new entrants, the new competition, especially the digital-first competition. In that space, everybody wants to play. I mean Europe has been at it for a while with the likes of N26 and Monzo and Raisin. But in the U.S., there's a lot of initiatives you've all heard of Chime, you've all heard of Simple, you've all heard of Moven. We've seen the big players thinking that they also need to play in that space. So Marcus, everybody's heard of it and [ go manually add it ] , and Marcus are actually quite successful. So really, when it comes to digital first, it is a very, very big play now. Fintechs are also going at it. They have a slightly different view on how they're doing it. They're focused on distribution, obviously, and they usually are backed by incumbent bank or smaller banks. But they don't usually do the manufacturing themselves. They focus on distribution. However, they're big players in the market. There's obviously [ launch ] every year, everywhere, every market, a complex regulatory environment, U.S. is no exception. It's actually probably even more complex because of the state regulation as well. So the layers of regulation is actually quite heavy. It has changed though. People are -- regulators especially are less interested these days in globalization. They're more interested in the trade tensions that we're seeing everywhere and how they're going to regulate this. Also on their agenda now, which we didn't really use to see before, are technological changes. They used to be an enabler. Now they are a concern for regulators. So it's actually slightly different. And then, obviously, like in every domain, the social concerns, including the environmental concerns, the environmental sustainability. All of these are challenges that are not only now facing our day-to-day life, but the regulators are very concerned, and they are making sure that their financial sector gets concerned with this. So obviously, the financial services firms have to get ready for this. The other 2 are more classic. We've been at it for quite a while, but it's still there, and it's still there on every market, it's very present in the U.S. The cost -- the pressure on costs, everybody needs to find a way to operate cheaper, everyone needs to find a way while they still need to be compliant, they'll be -- a big cost for them on the regulation. They need to still find a way to spend less, spend better, increase -- better their cost-to-income ratio. So all of these things are still in play as well as their pressure on interest rates. So all of these really are challenges that we see in the U.S. But they are actually for us, very, very strong driver. So yes, the size of the market is important for us to think we need to be there, but it is sustained by quite strong drivers that we can explode and we have solutions to when it comes to offering solutions to the financial institutions in the U.S. At the helm of this, obviously, is the digital opportunity. All of those challenges, whichever way banks are trying to address them. Most of them start from the digital front office. What should they do in the front office first. And most significantly, really, how do they address those challenges through the digital play. So for us, obviously, the answer was Infinity, which we announced last year, and how to increase the speed to market of Infinity, our answer was Kony. So we realized that, that would give really 2 things. First of all, increase our time to market on the product front and obviously increase our presence in the U.S. specifically. So on the product, really, with this being a global leader, we got a SaaS digital offering that is readymade -- that is at the heart of how this company used to operate. So again, goes played well to our driver growth around SaaS that you have seen earlier. The platform itself is an award-winning platform. It's well recognized in the industry, sold the banking experience platform, the multi-experience development platform as well complement our Infinity agenda. So really combining this with Infinity and Avoka, we get a superior offering for Infinity and we get it fast. So that's time to market. The local development platform, something that, again, is very, very unique, very, very useful for CIOs and CTOS. And again, we talk time to market for them and for us, it's a very good play. Finally, obviously, it's very, very functionally rich. It has the right technology underpinning it. So again on the product side, it's really been a leapfrog for us, it's really helped us in that front. And obviously, it's a U.S. player, it's the largest digital player in the U.S. So that comes with the U.S.-centric product. So yes, Infinity will be complemented by Kony globally and it helps globally our portfolio. But in the U.S., again, if I talk about leapfrog and jumpstart, we got it with Kony because their excess solution is tailored for the market from the get-go. It comes with 50 U.S. clients, especially good traction on the other tiers. So again, where we play very well. Knowledgeable people, knowledgeable people not only about the solution and technology, but the U.S. market, and a lot of cross-selling opportunity for us. So overall, that was one of our key way in and key reason for doing this acquisition and really thinking this is going to strengthen significantly our U.S. offering and U.S. presence. However, I mean, when we talk about this, yes, there is a specific for the U.S. and the narrative is different, the CIOs and CTOs have a different view of addressing their stack and their technology. We hear a lot, which we are hear less in the rest of the world, we hear a lot about system of engagement, systems of record, systems of insight. But if you look at it compared to what you've probably heard in this morning, you heard probably a lot about distribution and manufacturing. And really, while this vision of the world, of the IT landscape in the U.S. is, is no different. You pretty much have system of insights sitting in the middle. But in a way, and by and large, it is not a stretch for our offering as this is what we're doing globally. It is just a slightly different presentation. And obviously, some specific, I wouldn't say, customization, but market-specific features that we got from our market presence. So on that, really, we can capitalize on the 1,300 institution that we have in the U.S. that are live and which have one part only [ offer of the ] portfolio that we can then start cross-selling to. Of course, I mean, for us, that's probably not enough. We talked a lot about capitalizing the digital opportunity. And that's why we felt that we need to complement and enhance the offering in the U.S. with a specific and targeted offering for that market. That's why we launched about a month ago our U.S. SaaS offering. So it's really a dedicated offering for digital banks; front to back; out of the box; continuously deployed, meaning, continuously enriched and enhanced for banks who want to get into that market, want to get into that market quickly. It can be banks, it can be new entrants, it can be FinTech. But the idea really is to say, in 90 days, you have a bank up and running. You have a front-to-back solution, up and running, continuously deployed. You can then start servicing and entering and benefiting the market. As I said, really relevant to the play around the new digital entrants, specifically around deposits. I think all the banks that are starting up these days are only starting from 2 angles, deposits or loans, it's pretty much what we see. It's not super sophisticated in terms of what kind of product they're offering. But the key is time to market, quickly getting those deposits. So we've seen a lot of interest in the U.S., we launched that on year, year -- sorry, a month ago and there's really a lot of interest. We had a lot of inquiries. Interestingly enough, obviously, which is a good proof point for us from the Kony clients, from all the Akcelerant clients as well. So all the clients that are at that end of the market where they're thinking I need to do something else, but also a lot from the big ones who are thinking we need to get into that market. So very encouraging for us. In terms of how we're planning to go-to-market in the U.S., obviously, it is quite different from what we see in other markets. I mean the structure of the market is really based on tier and the size of the organization. You have a very, very fragmented market, a very large market, over 10,000 institutions. And the behaviors, the spending patterns, engagement is different from every tier you go to. I mean, the majors, obviously, the big ones, the clients, the Regions which are clients of ours, for example, they operate within their boundaries. They have different business segments. They have different things we could talk to them about, and they are closer to what we see traditionally. The nationals, again, quite a large client base for us. You've all heard about commerce, you've all heard about sterling national banks, Ally. Again, slightly different, what you will equate to a Tier 2. Closer to major, I would have to say, but again, less business segment-driven, more global in the U.S., so a very different play for us as well. The regional, there you have a mix of credit unions and banks. They are often community banks serving a particular community in a location or an affiliation. So again, very specific in terms of the market they serve and the customers they serve, but usually not very broad in terms of what they do. In that space as well, we do have quite a lot of clients, partners. One of them with this, I don't know if you might know, that it is the Credit Union for the Disney employees. So all the Disney employees today are [ served ] by us, which is quite fun, if you look at it this way. The first -- the techs as well. If you look at First Tech Federal Credit Union, that's the bank for the Silicon Valley employees. So in there, lots of LinkedIn, Facebook, Google, Apple, Microsoft employees, very trendy. But again, at the place where it's very specific in what they do, it's very narrow. It's a different -- again, a different market for us. The digital banks we talk about, I mean we talk about [ the plans ]. Whether you're talking new entrants, whether you're talking affinity banks or are you talking big banks, large -- majors wanting to launch new brands and attack a new market, for us, again, a different play, a different way of going at it. And then the funds and wealth segments. In the U.S., we have half of the world's AUM sitting in the market. So a place where we have offerings, a place where we are well positioned to attack the market and quite significant for us to go after. So in terms of how we're going to work, it's really about tiering the market and finding which are the right solution to offers. We know that our solution are diverse, we have the large portfolio, we have 5 drivers of growth. Some of them apply to all segments, others don't. And we need to be focused. We need to understand what to offer. I mean, with 10,000 institutions, quite frankly, you need to know what you're going to attack where and which solution you're going to deploy. So obviously, the majors we know there's a play around Infinity, of course. There's a play around the core. There's a play around the -- anything to do with the analytics as well. If you look at the nationals, pretty much everything is of interest, not funds. That's not something they do. On the regional, it's really going to be centered around Infinity and cloud. That's what they're interested in, that's the entry point. They might then move into looking at Transact and the back, but the entry for us is going to be through the Infinity platform and the cloud. The digital bank, a bit of everything. As we know, our solution, anyway, the way it's been built, it's on cloud, so that's one tick. It has front-to-back and analytics. So pretty much everything is in there. Payments obviously underpins all of our core banking platforms. Wealth sector in that front, it's Infinity because Infinity covers the wealth, so it's Infinity from the front office point of view. Whether it's for wealth managers or for fund administrator, the platform we can give to them on the fund side as well as our dedicating offering for the fund side with Multifonds. So if you look at this, really, we are actually quite clear on how we going to attack which segments. However, one thing is also very clear, and I'm sure you heard that before, we can't just go ahead with a big bang deployment. So all of this is going to be underpinned on our side with how we're going to distribute and deliver those solutions to them. So micro services are key, especially in the high [indiscernible] tiers, the majors, they're not going to do a full core banking replacement big bang. Every product line in one go. We need to be able to offer distribution services to them. We need to offer different Transact services on -- also so that they can start plugging and unplugging the legacy. So that's something that we're going to have to pick and choose for every single segment, but we have the portfolio. The good thing for me, getting back into this market, is really the offering. Because yes, it is what we have globally and Temenos is like that. We deploy globally our solutions. We don't really do specific. However, with our presence in the U.S., with the [indiscernible] acquisition, and now, through the microservices, we have a different way of going after the market that is probably more suited to the way the CIOs and the CTOs in this market operate. A good proof point -- I don't know if you've been reading the American Banker this week. But there was a very good article, we're very proud of this, on Varo. Varo has been one of our very early adopter. They have been a partner of ours from the beginning. And actually we tested pretty much our model bank, our U.S. model bank, which is at the heart of our SaaS offering, we tested that with them because they're using Transact on the cloud, they're using lifecycle management, they're also using payments. So really everything within our portfolio that we are actually putting on the SaaS model, they've been using. They've been piloting with us. They have been steering us in the right direction. And what better proof than having the FDIC say you're good to go? You are now able to get your charter, you can launch your operations. So for us, it's been a great week, I'd have to say. I mean we've been working with them for a while and getting this on the newspaper is actually proof point for us, that what we have can be deployed, can be approved, is actually state of the art. I mean if you look at what Varo is going to do with [ it's suite ]. So quite frankly, all the work that's happened and all the acquisitions have actually paid off and it's a good launchpad for us. So if I summarize, really, where we are now, it's all about scale. We know that in the U.S., the market is there in terms of scale. The offering -- our offering is there in terms of scale. We do have our 5 engine of growth, they're all relevant. We have a great partner network. I mean we've been working with the partners in the region for a while with Cognizant to Deloitte for the deployment. But now a new -- Max has talked about it. We are actually focusing also on the big tech companies to make sure that we leverage as well the distribution network and their sales force. So complementing this with our own sales force, which has actually grown significantly, we've added 25 headcounts in the U.S. just in sales. We went from 49 to -- from 44, sorry, to 69. So if you look at this, we do have everything to succeed in the U.S. We have the product. We have the scale of the organization. We have the partner network. We just need to go engage. I think it's starting. It's starting big. We've done quite a lot of very nice customer acquisition over the last 2 to 3 years. And I think we have now the next wave ahead of us, and I'm actually very excited to be leading this. So hope to share more of you, and I'll be talking to you more also on what we see coming here. Adam?

Thank you very much, Alexa. Thank you. Very glad that, that went fine in terms of technology as well. Filing in from the U.S. is not necessarily easy. I'm now going to hand over to Takis, who's going to cover the section on creating shareholder value.

Yes. Welcome to this afternoon session. As usual, we're not going to talk about Q4 results. We did this yesterday. We have given an outlook for 2020. I think we're convinced we can deliver on those. So this is more about taking, first, a look back, but then also give you some of the background required, why you believe this is an exciting story, not just for 2020 but for the midterm and the long term. So if we look at the basics, I think this is good, classic, strong business model based on software, packaged software, continuous investment into R&D, and put that back all into software, make it available to all the clients and, therefore, building this very strong business model. It has delivered, as we heard from Max, 25% total software license growth CAGR over the last couple of years. It is 64% of total shareholder return over the same period. And I think that's something, it's a testimony to the strength of the team, to the strength of the ecosystem, but also the strength of our culture, as Max pointed out. Now if we take a look at the revenue KPIs over the last couple of years, you've seen the 25% already, but if you look at recurring revenues, and this is, I think, important for the investor community, that the growth here is also building. And this is basically locked in -- or a large part is basically locked in profit. So it gives you the visibility and it gives us also the confidence that this business model is also working in the future. We touched upon SaaS revenues in more detail today, 53%, and you see a massive acceleration. Yes, there was also M&A included. But definitely, this is for us. And Max mentioned or quoted this, a tectonic shift. I'm going to talk about this. This is really a step change. And this is really something we believe will going to be more important going forward. And the good thing about it, it's incremental. So far, we're not seeing or a very minimal impact in terms of cannibalization. So it's still on top of a strong license business model which we project for the future. Now just delivering growth, and there are many companies out there in the U.S. or many software companies which can deliver growth, but they lack the other ingredients for what we believe is the perfect business model in the software industry. You also need to deliver profitable growth, and you also need to deliver cash. We're going to talk about this. So here, you see actually that, over the last couple of years, the margin expanded an average of 100 basis points. And I think that makes sense about there to see for the next couple of years for the medium term. This is what we believe is possible. Maybe in a year, a bit less if we do M&A or invest in sales and marketing and maybe a bit more in another year. I think that's a good average. What is also important is to see that EPS growth was basically at the same pace. So whatever we do is not diluting to shareholders. And I think that's very important. So M&A is always prudent and not dilutive in the midterm. Looking now at cash flow. And we talked about the small bump we had last year at the end. But overall, this is tracking very well. So it's not just delivering growth and profit. It's also delivering cash and this will continue. And we believe it's also a testimony to the hard work of the team out there and we believe we're doing more with Tier 1 to 2 banks, obtaining even better payment terms than we have today, bringing more of the services to partners, as we have already seen, and especially having a larger contribution from SaaS will help us increase operating cash flow and get DSOs down to, I think, 90 days will be an appropriate level. We're going to talk about this in a minute. What about capital allocation? Now you can be wasting shareholders' money. We definitely have proven not to be in that category. If we look at the last 5 years, there was a $1.2 billion we spent on acquisitions, on accretive acquisitions and returned $800 million to shareholders through buybacks and dividends. And this is all driven by a strong free cash flow generation we have just seen. Also dividends, while we're not a dividend stock, still in the last 5 years, the dividend has more than doubled $0.40 to a proposed $0.85 per share to be paid out after the AGM, if approved. But still, we maintain a very disciplined approach to cash. So we're targeting to basically go back towards 1.5x net debt to EBITDA as a leverage from today, 2.6x by the end of 2020. And I think with our strong cash flow profile, that is a very feasible target. Now you heard from Max this morning and basically from the entire team, we touched upon the 3 acquisitions done last year which added a tremendous technology portfolio, but also a lot of talented people, global clients and also scale, in general. So I think this is -- this has been a very good year in terms of the different areas we'll going to be focusing also in the future. Data, AI, analytics, as we heard from Prema, is an important driver. The Infinity portfolio will remain a significant focus of ours. But overall, we always stay very disciplined in our approach to M&A. I think that's important for you as shareholders that we are very responsible in what we do with the capital. And the pace. If you look at the last 1, 5, 10 years, okay, the NASDAQ beat us by a margin. Last year, we had a small blip in Q3. But then basically, the share price took pace again. This is adjusted for FX and believe is a testimony to the strength of the business model and also to shareholders seeing the value a true software business model can generate, i.e., packaged software, upgradable software, investing in R&D, widening the gap to competition and expanding the #1 leadership position. So some very big numbers. I think outside of -- if you were to compare the big tech giants to that, I think with the exception of Netflix and Amazon, we will be up there with the best. That's, I think, a good testimony. So what is going to drive growth in the future? Now we heard about technology being a cornerstone. We heard about the broad product portfolio. We heard about the U.S. opportunity just a minute ago from Alexa. So overall, those engines of growth are firmly in place and the market remains very attractive and continues to grow. And if we look at the small box on the right-hand side, we talk about $14 billion growing to $16 billion by 2022. So still third-party spend at those 8%. But the addressable market as a whole is also growing. So it's not just one dimension, it's basically moving in 2 dimensions. So for us, we're important. As we've seen, Infinity and Transact being the largest ones. But also payments and the other product offering, a very attractive growth profile. Now what we have done in the past, and these are some of the milestones reached in the last couple of years, the addressable market has expanded by a factor of 6 in the last 10 years. We added payments. We added fund administration, that was 2015 with the Multifonds acquisitions. Then we added origination capabilities. There was Avoka, for example. So this is still what we believe the right way to address this large opportunity. So again, growing in 2 dimensions. One is the market itself is growing. But then also carving out a bigger piece for us, which we can address with our product portfolio. Now there has been a lot of debate in the last couple of years. Yes, what about Tier 1 and Tier 2 clients? I think this is a clear testimony to Tier 1 and Tier 2 banks doing more with us. If you look back 5 years, it was around 26%, and the other tiers contributing the rest. Last year, it was 43%. It always can fluctuate between years, depending on the number of Tier 1 deals you have. But we still believe those wallets at banks are still best, and we have everything in place to address those wallets. So we believe, in the medium term, this should be maybe around 45% to 55%. I think that's the right value. On the one hand, we're seeing Infinity also being something large banks are looking at. On the other hand, with very, very fast adoption of SaaS and cloud, especially by smaller banks, this is a bit of an offsetting effect. So 45% to 55%, I think, is probably the right number in terms of a medium-term target. And medium term, in that context, is always about 3 to 5 years. Now North America, we heard this opportunity from Alexa just before. Again, showing very good development, also helped partially by M&A. But I think we have been winning reference customers in the last 5 years. And with more and more of those going live, we just saw Varo as an example. There's going to be larger ones going live this year. I think it's a huge opportunity for us because once -- the difficult part is building a reference space, building a localized product, and we have that in place. And that's why we believe there is going to be an even stronger acceleration of our U.S. business. So we're very confident that the U.S. business, or North America as a whole, will grow faster than the rest of the world, also in the future. And I think 35% to 40% is probably the right number in terms of what we see based on our current forecast as a medium-term share. Now we talk a lot about SaaS metrics, and you've seen some of the slides that are in TCV on an annual base. As you've seen, a forecast on ACV now for the upcoming period, i.e., we are expecting ACV to at least double for 2020 based on the $21 million we have achieved in 2019. So exceptional growth across all those SaaS metrics. And this is why we're showing this is, on the one hand, help you with the modeling and why we're so confident that this SaaS business will continue to grow tremendously, but also to underline our conviction that we can achieve with more and more SaaS business, providing very good visibility that we can achieve our 15% total software licensing growth in the long term. So you've seen those, and I'm not going to go into more details. I think it's really a shift in growth acceleration. We've never have weakness before and pretty massive. Yes, there is M&A involved for both time periods, but we believe this is something we'll be closely watching. It's really a tectonic shift, and we believe, and that's the important message here. It's not one or the other. I think we'll going to continue to grow license bookings at a very strong pace and even stronger on the ACV side. And specifically, if you look at it more on a short-term basis, and this is just 2019 versus 2020, so the bookings growth on ACV is set to accelerate even further. It was already more than 4x if you take the run rate for Q4 '19. And it's going to be even faster if we look at current forecast for 2020. So an acceleration here and a multiple of 5x, I think it's very, very attractive for shareholders. And I think we have everything in place. The product, but also the organization, the partners to deliver on this one. If you look at this from a long-term perspective, and we did a lot of number crunching to see whether this contribution or what the contribution to overall total software licensing growth of SaaS will be. And you look at the slide, and we started at 5%. 2019, obviously also helped by M&A. But we believe more than 60% of our growth in total software licensing will already be coming from SaaS. And if you look at the size difference, you can imagine what kind of growth rate we're seeing here. In the long term, and this is the left chart. We believe SaaS should be anywhere between 35% and 40% of total software licensing. So really a massive volume. And the good thing about this, this is not dilutive to margins. And why not? We're still relatively small versus the size of the company, what we do in SaaS, so there is still a lot of operating leverage coming from improving our SaaS offering and really scaling that. So it's growing as a percentage. It's growing in absolute terms, but it's also growing in terms of profit contribution. Now we had this discussion internally. And I thought, okay, let's try to show how we build those models internally and to basically give you some of the building blocks which are the bases, which are the pillars for achieving our mid-term growth or long-term growth and our EBIT target. On the left-hand side, this is more the regional split and probably not much of a surprise. But even Europe, which is our largest region, we see a lot of opportunity there across all products. North America, coming from a lower base, also helped by M&A, definitely helping. But also the other regions, APAC, which had a strong year in 2020. So it's broad based, it's not just we're betting the company and the growth just on one region. If you look at how do we get to the 36% in the medium term, I mentioned already the operating leverage and the SaaS growth, which is profitable growth, yes SaaS has still lower margin than our license business. But this is improving fast, thanks to Colin and his team. Maintenance, as you know, a software company, this is an important driver. That's basically pure profit, what we have in terms of maintenance growth, which would remain double-digit. And then services, yes, we're offloading more and more to partners, which makes it more profitable. But even without that, I think we have still some optimization potential. And then the other cost lines, we're leveraging G&A and also R&D a bit. Definitely continue to invest in sales and marketing because we see this as a really important element to deliver the kind of growth we're expecting. Looking at cash. What are the building blocks on this one. On the left-hand side, first, for the operating cash flow performance, definitely profitability is one thing. That's pretty straightforward. But we also see the growth in SaaS and maintenance revenue obviously boosting deferred revenues, and this is a material contributor as well. And then finally, yes, there is some way to go on DSOs, partly offset by payable days, but this should get us to operating cash flow growth, which is obviously at least in line with what we expect for EBIT growth. On the DSOs, 120 as a starting point. I think we can definitely improve or still improve our terms on our license business. The SaaS mix will help tremendously. And as I just mentioned, services DSO, some regions are very well advanced and optimized. Others, we still have a bit more headroom to improve to get to the 90 days in the next 3 to 5 years. Now M&A. We did the backward-looking view. Going forward, I think it's still the same strategy. As Max pointed out, we want basically M&A to accelerate our organic growth. That can happen through various areas or pillars. Yes, we can accelerate our R&D road map. And basically, gain access in key markets and new segments or expand our position as we did with Kony, increase scale that was also partially covered by Kony, especially in the U.S., adjacent markets and complementary products. I often get the question, "Would you go back into capital markets?" I think we can clearly say this is, right now, definitely not a priority. We do not want to dilute our growth. I think that has been also a message by the shareholders, that they want to have somebody, a pure-play in banking, delivering consistently on this growth target. Okay. So 6 minutes to go. Let me get to the growth targets. We confirmed the long-term target this morning. As you can read in the press release, maintain the at least 15% total software licensing growth, 10% to 15% CAGR on total revenue growth, the EPS growth of at least 15%, tax rate and cash conversion. What we did on the medium-term targets was we basically brought forward the EBIT margin. That was a long-term target, 36%. We pulled this forward for the next 3 to 5 years. If it's 3 years, it's an average of 130 basis points. If it's 5 years, it's an average of 70, 80 basis points. Now obviously, we have the ambition to achieve this in 3 years. However, we're not going to do something which is not smart in terms of the organic growth. If we have the opportunity to invest in sales and marketing, to accelerate organic growth, we definitely will do this. DSOs, as I mentioned, 90 days. We should get there before the 5-year period. And tax rate, we're not yet running out of deferred tax assets, but I think this is something which will slowly creep in and push our tax rate a bit higher. Okay. I think that's it from my side. With that, I conclude. I think that was helpful to build your models and get the DCF values up there. And with that, I hand over to Kalliopi. Thank you.

Hello to all of you. We're going to talk about corporate social responsibility a little bit different from what you've been listening the whole day. So we, at Temenos, we rely on 8,000 people of 90 nationalities in 68 offices in 40 countries in client sites and from everywhere to deliver value to all our shareholders. So let me briefly give you a little bit of background in the kind of environment we are operating in right now. I'm pretty sure that last summer, we saw, at the business roundtable, the CEOs of 200 of the most prominent U.S. companies updated the purpose for corporations in order to include the interest of suppliers, clients, employees and the local communities at the same level as those of the shareholders. At the same time, a few days ago, we heard the CEO of State Street saying that ESG is going -- is not going to be optional anymore. A couple of years ago, we all heard BlackRock CEO saying that sustainability is going to be in the center of its strategy. So at the same time, we see a lot of teenage world-change-makers to be sitting on the same table as CEOs in big events like the United Nations or the World Economic Forum event. At the same time, we're also witnessing a lot of adverse environmental and public health events that are actually changing the way we live on a daily basis in the way that companies are operating globally. I could name a lot of other examples of that sort. At the end of the day, what we're seeing is that sustainability is becoming mainstream. It's going upwards on the corporate agenda, and it's affecting the way companies are working, are planning and operating. So Temenos has been operating with integrity and responsibility for over 25 years. So our goal is to grow our business in a way that takes care of the world around us, delivering value to anyone associated with us. And how we do that? We do not just simply have a CSR strategy as an add-on. What we do is we incorporate sustainability to the way we operate, promoting a more sustainable business model. So our sustainable business model actually helps us create value for all our shareholders with a positive impact on our business model. At the same time, it helps us manage risk with a positive impact on our operations. And at the same time, it helps us give back to the local communities with a positive impact on society. So -- and we do that because we have commitment from the top. And we have our CEO, Max discussed it -- mentioned it in his presentation. We have our CEO, Max, chairing the CSR and Ethics Committee and driving the sustainability agenda in the company. At the same time, we have Board oversight of the CSR and ethics framework. So this is something that goes beyond regulatory requirements. This is something we do on our own initiative. And our ESG strategy focuses on 3 priority areas: ethical governance, environment and society. So let me briefly start -- let me give you a couple of examples, I don't want to get into too much detail. Ethical business conduct and governance, we have a 97% compliance with our business code of conduct and mandatory trainings. At the same time, we also do responsible procurement, meaning that we risk assess in all our new and also existing suppliers based on environmental and social criteria. At the same time, information security, the data privacy and resilience are a material issue for our company, meaning that we are delivering secure products that comply with global international standards. On the environment side, environmental management, we have rolled out a global environment management system, which is either certified in our offices globally, covering, so far, 60% of the total Temenos population. At the same time, we're also looking into climate change and carbon, which is something really important to us. We measure our carbon footprint. We also reduce as much as possible and offset our business travel, which is our biggest environmental impact. And at the same time, we organize sustainable and carbon-neutral events, just to name, Temenos -- TCF , Temenos Community Forum as well as Temenos KickOff. On the society part -- on the social part, what we are doing is we're focusing on something that we know really well, and this is part of our mission, is how to actually help young children and especially kids in India, which is a very material location for us since more than 55% of our Temenos population is based in India, to help them gain digital skills and help them become -- have a better future for themselves and their families and their communities. So how we do that? We have so far built 5 computer labs, solar-powered computer labs, in 5 government schools in great need in India. At the same time, we have built girls restrooms because we would like to help girls have equal opportunities with boys in life. But we didn't stop there because innovation is part of our DNA. We created an innovation -- a Temenos innovation lab in one of the leading universities in India, College of Engineering. And at the same time, we have initiated a program where, for the coming years, we're going to provide scholarships to College of Engineering students, second, third and fourth year students. And also, we're going to promote a new initiative of how to encourage more girls, more women to study engineering, to study IT and then have a career in IT. At the same time, we are going to provide them with job opportunities at Temenos, and this is -- because digital skills is something really close to our mission. On the gender diversity and equal opportunity front, we have been -- we are very proud of being 8% above the average, we have average women in the IT sector. So we have been -- for the past 6 years, we have been following a diversity strategy -- a gender diversity strategy. And we can actually say that at this point, we have targeted young women getting into Temenos and encouraging women as a -- young woman to get into an IT career. And right now, we're at this 47% of women in Temenos, young women under 30 years old. And at the same time, we're also targeting senior women -- advancement of senior women in senior positions, and we can say that we are at 45% of female are senior management -- managers reporting to the CEO. And last but not least, we're focusing a lot on giving back to the community through our people, through our expertise and also through our time of our people. So we have been, for a year to 2019, we have had 800 unique and returning volunteers, offering 1,400 hours doing community service, mainly in the schools and at the university in India, but also globally. And following also the London benchmarking group model, we monetized the amount of hours that were actually given by our employees. And the money is like USD 28,000, which is part of our community investment as well. So -- and it's good to do all these kind of things and to see how you can actually incorporate sustainability into your strategy, and see that the results, at the end of the day, are really rewarding. And we see a really positive feedback coming from the markets. We have been among the 25 most sustainable companies in the Swiss SMI Expanded Index. At the same time, we were also among the 10% of the world leaders within listed in the world -- in the Dow Jones Sustainability Index. We have the highest score in information security, cybersecurity and resilience. And at the same time, the highest score in environmental management and environmental policy. At the same time, we were also -- we're listed in the FTSE4GOOD. We have really positive and good ratings for MSCI and ISS, Environment and Social scores. Also, we have received the gold medal from EcoVadis, which actually evaluates the supply chain. And we are also happy and proud of our people, as we have been recognized in 5 different regions, in 5 different countries, with 5 Great Places to Work recognitions in Luxembourg, Greece, Europe, UAE and India. So I would like to close with one very simple message that we will be -- we will continue to do what we know best, which is actually delivering IT services, IT software to financial institutions of any size around the world. This is exactly what we know how to do best, but the right way, not just the easy way. Thank you very much.

Thanks, Kalliopi. Thank you very much. Well, amazingly, we're about 30 seconds ahead of schedule. So if you bear with us just for one second, we're going to set up some chairs for Q&A. And anyone on the webcast, if you'd like to submit a question, you can do so through the link under the main screen. I've got an iPad here, and I can read those questions out. If I can ask Max, Takis, Mark and Colin to join me on stage, we'll go to Q&A. There will be some mics around the room as well. So please put your hand up if you have a question you'd like to ask. So if you could just introduce yourself and who the question is directed to, that would be great.

It's Charlie Brennan here from Crédit Suisse. Just a high-level one to start with, if that's okay. On one of the opening slides, you laid out the market opportunity that suggests that the payments was the fastest-growing opportunity and fund administration was pretty high up there. But we've hardly heard about payments and fund [ admin ] at all. Do you feel like you're underweight in payments, especially relative to what's been going on in the U.S. and some of the M&A? And can you just update us where you are with the Bloomberg relationship? I haven't heard from them in a while. Thank you.

Thanks, Charlie, for that. Yes. I would say it's a very good question. And we try to package the day in the most efficient as we could. And if you look at the -- some major initiatives that we've done in the last 12 months, clearly, we thought we should focus the discussion today more on Infinity, including the acquisition of Kony and Avoka. So that's probably why we focused more on that part. But definitely, we've done a lot on the payment. And on the payment in fact, what I can say, we are doubling the investment we are putting in the product. So I truly believe that there is a big opportunity on the payment side. So it's not because we've not spent like 30 minutes on payment today that we don't see that as a big opportunity for us. At the same time, on the Multifonds side, we continue to invest, we continue to innovate at the whole [ UXI ] thing. We're putting this on the cloud as well. So a lot is happening. But somehow, I think it was already quite a long day. We try to focus. But next time, we'll spend more time on them. On the Bloomberg opportunity, we announced that around a year ago. And I think it took us longer than we were expecting to be able to package the offering within the Bloomberg network. Obviously, Bloomberg operate at huge volume and scale, I mean, whatever goes into the network of Bloomberg has to pass so many [ tailors ] it took longer than expected. Finally, all the tests that have been done, and we expect to sign our first customers very soon. Clearly, I was expecting this to go faster. Let's be honest. I still believe that once we've got the first customers that we sign up with the offering, the business case is very strong. I think there is really a market for that for a shadow accounting as such. And once we've got the first customer here, we'll see the traction. Bloomberg continues to be highly focused, committed to it. Probably the mention to us when we engaged in the partnership that it takes longer than you think to get through all our different security walls and to be able to be up and running. But typically, the Temenos way, we want to go fast, we want to go and deliver immediately. And probably it took longer than we were expecting. But to summarize, I believe the opportunity is still there, and I'll keep you posted on the progress.

Great. James?

It's James Goodman from Barclays. I wanted, firstly, just to come back to the cross-selling opportunity in the U.S., and not Infinity into your core base, which you've articulated very well, but whether it's realistic at all to think that you can increasingly sell Transact into some of the Kony base over time. And I just remember this time last year that you -- or at the last Capital Markets Day, I think you talked about a front office client, which was seriously thinking about implementing a back office Transact system. So in light of those sales cycles, what needs to be done to get that to sort of come to fruition? And then just secondly, on the proportion of revenue from larger clients versus smaller clients, which we've discussed a few times today, and you've emphasized the larger client focus. I think yesterday, it was one of the biggest SKUs we've seen towards, actually, the lower-tier bank. So I just hope you can help us understand what it is, at the moment, in your sales structure is focusing on some of the smaller banks, which is going to change towards the larger.

Just on the U.S., Infinity, I think it's not just in the U.S. But clearly, we believe that to enter a relationship [ in each ] on the front with Infinity in the back with Transact, ultimately, the full benefit, as we've seen in the value benchmark is to have an end-to-end solution and then some. Probably in the U.S. right now, with the dynamics in the market, we see the Infinity probably as a better way to start into a relationship. But definitely, the goal is to go through an end-to-end transformation. And that customer that you mentioned before who is an Infinity customer and are using at the back, legacy third-party core, now that they are going through the benefit of our modern technology at the front end, they see the limitation of what they can get ultimately out of the solution because of having a back-end software, which is still batch and so on. So if you really want to have the whole opportunity of our solution, we believe the end-to-end transformation is ultimately where you need to go. It takes time. As we know that to innovate the back end, it takes time. But we do believe that once we are into the relationship, that's the best way to go about it.

Let me take the second one. If you look at current trends, you have 3, which are basically putting or working into that number. So on the one hand, you have the increasing number of, let's say, smaller banks, so Tier 3 to Tier 5 moving to the cloud. That's obviously pushing to a lower Tier 1, Tier 2 share. On the other hand, we have Infinity being also actively marketed and sold to the large Tier 1, Tier 2 banks. So that's offsetting that. If we can get it done and we strongly believe it will happen, what Max just said, eventually selling front to back also to larger U.S. banks, Commerzbank and this kind, that will push it up again. So overall, that's why we think it should be around 45% to 55% in the medium term with those trends basically equalizing more or less each other.

Michael, do you have a question?

Yes. Actually, I wanted to follow-up on the -- sorry, it's Michael Foeth from Vontobel. I wanted to follow-up on the cross-selling. You were very excited about cross-selling when you acquired Kony. And I was wondering if you can update us on how much of your Infinity customers actually taking up the Kony offer. So what the -- how the cross-selling is really working out in the U.S. there more specifically.