Reliance Bank picks Temenos SaaS for digital overhaul

Reliance Bank has selected Temenos SaaS for its core banking, digital and payments systems as part of the UK bank's digital transformation programme.

Owned by The Salvation Army, the bank will replace its legacy systems with Temenos software delivered as a service. The agreement covers core banking, digital banking and payments.

The change is intended to improve operational efficiency and support deposit growth. Reliance Bank also expects the new setup to help it launch products more quickly and reduce the cost and risk associated with further software customisation.

The lender has a specialist position in the UK market, focusing on ethical and community banking. Founded to provide banking services to The Salvation Army and associated organisations, it now offers savings accounts for individuals, as well as current accounts, savings and loans for charities and small and medium-sized businesses.

Reliance Bank will use Temenos' UK Model Bank, a pre-configured system designed for the local market. Its API-based architecture is also expected to help the bank connect with fintech partners as it seeks to broaden its customer base.

System overhaul

The deal involves a full replacement of the bank's older technology estate rather than an incremental upgrade. By moving to software delivered on a SaaS basis, Reliance Bank will shift ongoing updates, support and maintenance to Temenos instead of managing those processes in-house.

This model has become a common route for banks seeking to modernise legacy systems without maintaining large internal technology stacks. For smaller and specialist lenders in particular, software delivered as a service can provide a way to update products and channels while keeping tighter control of operating costs.

Reliance Bank presented the project as part of a broader effort to build modern infrastructure for its next phase of growth. It linked the technology move to plans to scale services and strengthen support for the organisations and communities it serves.

"Implementing Temenos SaaS is a key element of Reliance Bank's digital transformation strategy, providing a resilient, modern infrastructure that will support our growth plans. With Temenos, we'll be able to scale efficiently and launch customer-centric digital solutions quickly, helping us to grow our deposit base and provide more financial support to charitable and ethical institutions," said Nikki Fenton, Chief Executive Officer, Reliance Bank.

UK market

For Temenos, the agreement adds another UK customer to its software-as-a-service business. The banking software provider has been targeting institutions that want to replace older core platforms and consolidate digital and payments functions on a single managed system.

The UK remains a significant market for such projects as banks face pressure to refresh ageing technology while meeting customer expectations for digital services. Providers have increasingly focused on pre-configured products tailored to local regulations and market practices, helping shorten implementation times and reduce the need for bespoke development.

Reliance Bank's ownership and lending focus make the deal notable. As a bank owned by The Salvation Army, it has maintained an emphasis on socially focused, ethical banking, including lending to businesses that aim to deliver positive social impact in the UK.

That position gives the technology overhaul a strategic role beyond back-office modernisation. A more flexible system could affect how quickly the bank introduces products for individuals, charities and smaller businesses, while also shaping how it connects with third-party financial technology providers.

Temenos said its system would support that shift through a combination of locally configured software and open integration tools. It presented the agreement as evidence of demand from institutions with specialist requirements.

"We're proud to partner with Reliance Bank on this strategic transformation, and support the bank's mission to deliver a positive societal impact. With its flexible, cloud-native architecture, broad functionality and pre-configured capabilities for the UK market, Temenos SaaS will help Reliance Bank to meet the needs of its specialist customer base with agility and speed. This agreement reflects Temenos' proven ability to support institutions with specific requirements, as well as our strong track record and continued momentum in the UK," said Yamin-Ali.