• Temenos unveiled a new solution, based on Generative AI, that automatically classifies customers’ banking transactions.
• The new offering will help banks offer more personalized insights and recommendations to their customers.
• Temenos’ Generative AI solution is part of the company’s strategic AI roadmap. Other use cases for the technology include chatbots and guiding customer journeys.

How will financial services companies take advantage of Generative AI? One way, courtesy of a new solution from Temenos, will be to leverage the technology to automatically classify customers’ banking transactions. This functionality will make it easier for banks to offer personalized insights and recommendations to their customers.

While traditional AI and machine learning technologies have been deployed by financial services firms in a variety of contexts, generative AI and Large Language Models (LLMs) offer these companies the ability to enhance both operations and customer experiences even further. This is due to the fact that Generative AI and LLMs outperform traditional AI and machine learning approaches when it comes to understanding language, images, sound, video, and code – and then leveraging these inputs into a variety of solutions for customers.

Temenos’s new Generative AI-based offering enables banks to automatically classify and label customer transactions. The technology has a high degree of accuracy and operates in multiple languages. The automatic customer transaction capability has a number of use cases including cashflow prediction, customer attrition analysis, next best product, and more.

“We have continually invested in embedding Explainable AI and ML capabilities into our banking platform and making available all products through an easy-to-use interface or APIs,” Temenos President of Product and COO Prema Varadhan said. Varadhan referred to the new offering as part of the company’s strategic AI roadmap and underscored the value of transparency and explainability when it comes to deploying AI.

Temenos has deployed explainable AI in a wide variety of use cases ranging from wealth management, AML, credit scoring, smart money management, collection optimization, and more. However, transaction classification is the first instance of leveraging Generative AI in a Temenos product. The company said in a statement that it plans to extend the technology to chatbots and customer interfaces, as well as in guiding customer journeys and responding to customer queries.

A Finovate alum since 2013, Temenos was founded in 1993 and is headquartered in Geneva, Switzerland. The company serves 3,000 customers and its open platform enables more than 1.2 billion individuals to conduct their daily banking activities. Two-thirds of the top 1,000 banks in the world and more than 70 challenger banks in 150+ countries use Temenos’ technology. Max Chuard is CEO.

Photo by Tara Winstead

• Banking technology provider Temenos is launching ESG Investing-as-a-service.
• The tool will help banks and wealth managers offer a digital experience that allows end customers to build an investment portfolio that reflects their values.
• The move comes amid a time of major growth for ESG investing, which is expected to exceed $53 trillion by 2025.

ESG investing has been on the rise for the past couple of years. According to Bloomberg, money held in sustainable mutual funds and ESG-focused ETFs rose by 53% in 2021 to reach $2.7 trillion and ESG assets are on track to exceed $53 trillion by 2025. Banking software provider Temenos has taken note of this and is launching a new tool to help banks and wealth managers compete in the new environment.

Temenos’ ESG Investing-as-a-service, which can be run in the cloud or on-premise, combines Temenos’ market data management and digital capabilities such as filtering, scoring, and modeling techniques with external data feeds. The company generates easy-to-understand ratings to evaluate hundreds of ESG factors such as carbon footprint, water usage, diversity and gender equality, and executive compensation.

“At Temenos, our purpose is to power a world of banking that creates opportunities for everyone,” said Temenos Product Director of Wealth Alexandre Duret. “With the new ESG Investing service, we will help private banks and wealth managers to become compliant, and their customers invest with a purpose. Available as a service on our open platform for composable banking, it provides a fast track for our banking clients to launch innovative ESG investment products underpinned by robust, compliant processes, including new MiFID rules applicable in the EU from August 2022.”

Banks and wealth managers can leverage the tool to create ESG compliant products, with a lower cost of development. Ultimately, they can offer a digital experience that allows end customers to choose investments that they feel good about and build a portfolio that reflects their values.

Temenos serves 3,000+ banking and financial institutions worldwide representing 1.2 billion end customers. The Switzerland-based company has embedded sustainability practices into its own operations with ESG governance, reporting, and measurable targets. The Carbon Disclosure Project awarded Temenos an A- rating along with platinum recognition.

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Just when you might have thought that the momentum behind the Buy Now Pay Later phenomenon might be waning, banking software company Temenos announced today that it is launching its own BNPL offering.

Temenos brings its patented Explainable AI technology to the BNPL party with its Temenos BNPL. The company says that the new solution will give banks and fintechs new revenue opportunities, enable them to access new markets, and strengthen their relationships with both customers and merchants with its ethically-driven lending program.

“In an extremely competitive market, financial services providers need to evaluate new business models to drive revenue,” Temenos CEO Max Chuard explained. “As the strategic technology provider for over 3,000 banks worldwide, we are committed to empowering our clients to pioneer and adopt those new, profitable business models. Buy-Now-Pay-Later has shown the industry that we can come up with new solutions to old problems.”

Temenos BNPL brings transparency to the automated decision-making and credit offer-matching aspect of the Buy Now Pay Later process. Courtesy of embedded Explainable AI, the technology allows clients to pre-approve loan applications or offer variable installments in real-time, contingent on pre-determined criteria. The technology offers visibility into the credit decisioning and provides a recommended payment timetable during the application process so the borrower can be assured of being able to make the repayments as scheduled.

Temenos BNPL is core banking system agnostic – accessible via the Temenos Banking Cloud, which means that institutions and businesses can deploy the technology along with Temenos Transact or any other core banking system. In a statement, Temenos noted that one company – “a global payments provider” – went live with its own Temenos BNPL-based Buy Now Pay Later service and received 22 million loan applications in nine months. The product launch was reportedly the fastest and most successful in the company’s history. It was also especially popular with customers, 70% of whom are repeat users of the technology with 50% using the technology more than once within three months.

“(Buy Now Pay Later) has challenged the way we think about customer engagement, acquisition, and retention,” Chuard said. “We are very excited to launch this new solution to enable our clients to offer alternative financing that is fast, seamless, and scalable.”

Photo by RODNAE Productions from Pexels

Banking technology provider Temenos has teamed up with telecommunications equipment and consumer electronic giant Huawei this week. Through the partnership, Temenos will make its cloud-native core banking solution available on the Huawei Public Cloud.

The agreement makes Temenos the first core banking software certified with Huawei infrastructure and Huawei Public Cloud.

Specifically, banks will be able to use Huawei Public Cloud to modernize their core banking systems, an action that is critical in today’s digital-first, partnership-forward banking environment. Ultimately, modernizing their core will help banks scale, reduce cost, and gain operational efficiencies by increasing agility and opening up new business models.

“Together, we can help digital-first banks as well as large banks in need of core modernization accelerate their move to the cloud,” said Temenos President of Strategic Growth Philip Barnett. “Our API-first, cloud-native core banking solution based on Huawei Cloud will provide flexibility, agility, elasticity, and accelerate time to market for banks.”

The two will focus on marketing in China, which represents a six billion dollar addressable market. Temenos’ solution will also be available to the broader APAC region and include Africa, Europe, Latin America, and the Middle East.

Temenos serves 3,000+ banking and financial institutions worldwide representing 1.2 billion people with its cloud-native, API-first technology. Huawei counts more than 2,000 financial institution clients worldwide, including 47 of the world’s top 100 banks.

Photo by Jake Oates on Unsplash