MONTSAME spoke with Baatar Sukhbaatar, Deputy Chief Executive Officer in charge of Information Technology at the Trade and Development Bank, about the bank’s ongoing technological transformation.

- Good afternoon and thank you for accepting our invitation. To begin with, could you please introduce yourself to our readers?

- Good afternoon. My name is S. Baatar, and I serve as Deputy Chief Executive Officer in charge of Information Technology at the Trade and Development Bank of Mongolia (TDB). I have worked in the banking sector for nearly 20 years, primarily in technology and IT.

- Last month, TDB’s system upgrade attracted considerable public attention. Although customers were informed in advance, criticism and frustration followed the migration, particularly over difficulties accessing the mobile application and temporary service disruptions. Could we begin with what happened?

- First and foremost, I would like to apologize to our customers who experienced inconvenience or frustration following the system upgrade. For more than three years, TDB has been preparing for this transformation in phases, and last month we successfully migrated to our new core banking environment. It is important to understand the scale of this project. This was not simply an update to the mobile banking application that customers see and use on their phones. It was a comprehensive transformation of the bank’s core banking system and the interconnected systems that support it.

In simple terms, a core banking system is the technological heart of a bank. It continuously records, processes, stores and protects vast amounts of information, including customer transactions, account balances and lending records. Mobile banking, card networks, branch operations, regulatory reporting to the Bank of Mongolia and many other services are connected to this core.

If we compare a bank to a car, the core banking system is its engine. If we compare it to the human body, it is the heart.

So, when we talk about this transformation, we are talking about replacing and modernizing the technological foundation on which the bank operates.

- Why did TDB need to replace its core banking system in the first place?

- There were four main reasons, and all of them are directly related to the services we provide to our customers.

First, customer expectations have changed. People increasingly expect fast, reliable banking services anytime and anywhere, without necessarily having to visit a branch.

Second, transaction volumes continue to grow, which places greater demands on banking infrastructure.

Third, requirements relating to cybersecurity, fraud prevention, regulatory compliance, and customer data protection are becoming increasingly stringent.

Fourth, emerging technologies such as artificial intelligence and open banking require a modern and flexible technological foundation.

After evaluating these developments from multiple perspectives, we concluded that a transition to an internationally recognized banking platform was necessary.

Continuing to make incremental modifications to our legacy systems would not have been sufficient in the long term. From the beginning, therefore, we chose to prioritize sustainable growth and long-term competitiveness over short-term convenience.

We also understood from the outset that a transformation of this magnitude would require substantial time and investment, together with careful risk management.

To date, TDB has invested approximately USD 30 million, or around MNT 100 billion, in this technology transformation.

The scale of the investment and the project itself reflects its significance. In many respects, this is a technology initiative of national importance, and we will continue to invest as technology evolves and our systems advance.

Most importantly, we have successfully introduced international banking technology standards in Mongolia through the skills and expertise of Mongol professionals.

This has been an extensive undertaking, shaped by the knowledge, commitment, and hard work of many people.

- So, this goes far beyond updating a banking application. You have essentially transformed the technological foundation of the bank. Which system did TDB choose, and why?

- We selected the banking platform of Temenos, a Switzerland-headquartered global banking technology company, and have been adapting it to TDB’s operations, Mongolia’s legal and regulatory environment, and the specific needs of our customers.

Introducing an international banking platform is not simply a matter of purchasing software, installing it and switching it on.

It requires a thorough understanding of the system’s architecture, data structures, business processes, cybersecurity and data-protection requirements, followed by careful adaptation to the operational realities of the organization.

As banking services become increasingly digital, the importance of protecting information and maintaining a high level of cybersecurity grows with them.

For that reason, our decision was based not only on the functions the system offers today, but also on its scalability, flexibility, integration capabilities, security, regulatory compliance, and ability to evolve over time.

Temenos Transact has a modular architecture capable of supporting a wide range of banking products and services. Its API-based design also enables different components and external systems to integrate more flexibly.

Today, more than 1,000 banks across over 150 countries use Temenos core banking technology in their day-to-day operations. These include Austria’s Raiffeisen Bank, France’s Société Générale, the Netherlands’ ING Bank and ABN AMRO, South Korea’s Woori Bank, Japan’s MUFG Bank, Switzerland’s Swissquote, as well as globally renowned Standard Chartered.

These capabilities and its global track record were among the key reasons TDB selected Temenos.

- What tangible benefits will the transition to Temenos bring, particularly for customers?

- Fundamentally, this transformation takes TDB’s technological capabilities to the next level. It creates the foundation for many improvements, both for the bank and for our customers.

First, it enables us to manage customer information in a more integrated way and streamline internal processes.

International experience provides useful examples. At MidWestOne Bank in the United States, for instance, the reported processing time for a new account application fell from approximately 15 minutes to around two minutes following the introduction of Temenos technology.

Similarly, Italy’s Credem reported significant growth in digital activity following its transformation, including an increase in online transactions and active digital customers.

We believe our customers will increasingly feel these benefits as they become familiar with TDB’s new platform and services.

Second, the new system provides a more flexible foundation for APIs, allowing banking services to integrate more efficiently with other platforms.

This creates opportunities for the future development of Open Banking and deeper collaboration with fintech companies and 3rd parties service providers.

Importantly, it also gives us a technological foundation that can be integrated with artificial intelligence solutions.

For example, AI can help organizations consolidate and analyze operational data, identify redundant workloads and duplicated processes, assess resource allocation needs and support better-informed management decisions.

Third, the transformation strengthens existing data and cybersecurity controls, risk management practices by bringing them to the new, more advanced technological level.

Technology-enabled financial fraud has become a global challenge, and fraudsters are constantly looking for vulnerabilities they can exploit.

For banks, protecting customers’ financial assets and personal information is therefore paramount.

As part of this transformation, we introduced HID Approve, an additional authentication layer widely used internationally, to replace MFA (Multi Factor Authentication) methods that previously relied on one-time codes sent via SMS.

Customers naturally want banking to be as simple and fast as possible. At the same time, banks have a responsibility to protect them from fraud.

Finding the right balance between convenience and security will therefore remain one of our continuing priorities.

- A transformation of this scale clearly requires substantial investment, time and human resources. But for customers, what they felt most directly were difficulties accessing everyday banking services after the migration. Why did this happen?

- Over many years, we had developed a considerable number of customized solutions around our legacy core banking environment to meet TDB’s specific business and service requirements.

Moving from that highly customized environment to a world-class, international standards based platform required us to migrate and test the  new systems, train our employees and, at the same time, completely rebuild our mobile and internet banking applications to further improve the customer experience.

In other words, many complex workstreams had to come together at once.

Following the migration, some challenges emerged as we worked to ensure that every customer could register, authenticate, and access the new environment smoothly while meeting the enhanced security requirements of the new system.

One of our highest priorities during the transition was to close potential avenues for fraud and strengthen customer protection. As a result, we applied more stringent authentication requirements. During the initial period, this contributed to additional system load and affected the experience of some customers.

There is also inevitably an adjustment period whenever people move to a new digital environment. As customers become more familiar with the new TDB application, we believe they will increasingly experience its improvements.

Some customers have also asked why the old and new applications could not have operated simultaneously while we transitioned gradually.

Although operating two systems in parallel may appear less disruptive from a customer’s perspective, it introduces significant technical complexities and creates additional challenges because two different core environments must operate and remain synchronized simultaneously.

That is why, despite the difficulty of the transition, we chose to implement the transformation in a big-bang approach, with the long-term interests of our customers in mind.

- So, adapting to a completely new digital banking experience naturally takes some time. Why was it necessary to redesign the application itself?

- Yes. All of us need some time to adapt to changes.

As customers become more familiar with the new TDB application, we believe they will find it more intuitive and convenient to use.

The new TDB application was redesigned using user-centered design principles. Customers can now complete the functions they use most frequently in fewer steps, making everyday banking faster and simpler.

We also incorporated spring-based animations into screen transitions to create a greater sense of continuity as users navigate the application.

Frequently used controls are positioned within the natural reach of the thumb, allowing customers to perform common actions such as payments and transfers more comfortably with one hand.

Another important improvement relates to accessibility. The color contrast of key elements, including monetary values, headings and buttons, has been designed to meet the highest AAA level of the Web Content Accessibility Guidelines, or WCAG.

This makes important information easier to read, including for customers with visual impairments and in challenging lighting conditions such as direct sunlight.

Some of these improvements may not be immediately obvious, but together they are designed to create a more accessible and intuitive digital banking experience.

- Another issue that drew significant attention was the change in account numbers. Why was this necessary?

- First, I want to reassure our customers that their previous account numbers remain valid.

Customers can continue using their existing account numbers to receive money from friends and family and for their everyday transactions.

There is also no need to change the account number registered for government services such as E-Mongolia and E-Barimt, or for social welfare payments, child benefits or pensions.

Likewise, customers do not necessarily need to amend the account number used in existing contracts and arrangements relating to salaries, rent or other transactions.

In practical terms, one account can now be identified by two account numbers.

When migrating to the Temenos core banking platform, we were required to adopt an account-numbering structure aligned with the new system’s architecture and numbering principles.

However, to avoid unnecessary inconvenience for our customers, we made the decision to keep their previous account numbers valid as well.

- Thank you. One of the questions customers are asking most frequently is when services will be fully stabilized. How is the system performing now?

- At present, digital banking services, including downloading and using the new application, have stabilized for the vast majority of our customers.

I would like to sincerely thank our customers for their patience, understanding and cooperation throughout this transition.

International experience shows that, following a core banking migration of this scale, a stabilization period is normal before every part of the environment reaches its optimal state.

We will therefore continue strengthening security and service reliability while resolving any remaining issues.

For a bank, there is nothing more important than protecting the trust customers have placed in us over many years.

Our customers can be confident that TDB protects their funds and personal information, and we will continue to do so.
- Technology has become inseparable from our daily lives. To conclude our conversation, from your perspective as a technology professional, how do you see it shaping the way we live and work in the future?

- I believe advances in artificial intelligence and technology will increasingly create practical solutions that make people’s work and everyday lives easier. We are already seeing this beginning to happen in many countries.

Tasks that do not require human intervention will increasingly be supported or performed by AI, allowing people to focus their time and expertise on areas where they can create greater value.

Human resources have always been one of the most complex areas in business. Technology has the potential to transform even areas such as customer service and recruitment.

Until recently, for example, few people would have imagined robotic servers in restaurants. Similarly, future recruitment processes may involve candidates interacting with AI-powered virtual interviewers rather than always meeting another person face to face.

My outlook is optimistic. I believe technology can make many aspects of work and life simpler and more efficient.

Technology is advancing rapidly around the world. At TDB, we recognized this change early and made the decision to invest for the long term by pioneering the adoption of international banking technology in Mongolia.

Behind this transformation are the knowledge, expertise and years of dedication of TDB’s technology professionals.

This was not an easy decision, nor was it an easy project.

What makes this achievement particularly meaningful is that Mongol professionals studied and mastered international technology solutions, then successfully brought that expertise home and implemented the solutions in Mongolia.

Beyond strengthening TDB, we believe building this kind of technological capability can contribute to Mongolia’s international reputation and to the competitiveness of its businesses.

Looking ahead, government institutions, businesses and, in particular, organizations that interact closely with the banking sector will also need to continue modernizing their technologies so that they can integrate more seamlessly with platforms such as ours.

Achieving transformation on this scale requires coordinated effort across the wider ecosystem. Standards for interoperability and data exchange, cybersecurity frameworks and the regulatory environment must continue to evolve alongside technology.

Ultimately, TDB will continue working to provide customers with faster, simpler and more secure banking services while playing a leading role in advancing Mongolia’s banking and technology sectors. Thank you.

Interview by Suren M.

Published Date:2026-11-09