Julius Baer has selected banking software maker Temenos to replace its legacy core IT system in Switzerland, according to four people with direct knowledge of the decision, marking a major step in the private bank’s push to modernise its digital backbone amid rising regulatory pressures.
Chief Executive Stefan Bollinger revealed in June that the group had launched a digital transformation unit and begun work on a sweeping IT upgrade in its home market, though he did not disclose the chosen vendor at the time.
“It has to be done, and I want to complete a substantial share of it within the current strategic cycle,” Bollinger said, referring to the period ending in 2028. He pointed to growing regulatory requirements as one of the key motivations for the overhaul.
Two of the sources said the bank plans to align its Swiss systems with Temenos’ T24 platform, already in use at Julius Baer operations in Singapore and Luxembourg. One source added that the bank will also introduce a Temenos wealth management interface designed for relationship managers and affluent clients.
Both Julius Baer and Temenos declined to comment on the selection or specific systems.
Temenos generally structures new agreements under a subscription model, spreading payments over five years, according to Reto Huber, an analyst at Research Partners.
Swiss regulators introduced rules in 2016 requiring banks to run computerised systems capable of monitoring transactions, a shift that has driven further digitisation of customer data, according to financial watchdog FINMA.
Julius Baer, which remains under a FINMA enforcement process related to losses tied to the collapsed property group Signa, said the IT upgrade is unrelated to the ongoing proceedings.
“The IT infrastructure programme in Switzerland is not an operational risk matter, but an initiative to secure strategic flexibility as the bank pursues future growth ambitions,” the bank said.
