Temenos this week launched what it claims is an industry-first secure solution for banks using generative artificial intelligence to classify customers’ banking transactions automatically.
Transactions classification helps banks provide personalized insights and recommendations, offer more engaging and intuitive digital banking experiences, and enhance customer loyalty through more relevant products and offers.
A provider of explainable artificial intelligence, Temenos has deployed generative artificial intelligence and large language models in banking with a solution for transaction classification. While traditional artificial intelligence and machine learning systems are already paving the way, improving operations and enhancing customer experiences, Temenos sees generative artificial intelligence and large language models as better understanding language, video, audio, images, and code to generate new outputs. The firm believes that generative artificial intelligence promises to unleash a wave of innovation and personalization, revolutionizing how organizations interact with customers.
Temenos’ new generative artificial intelligence solution enables banks to classify and label customer transactions from free text narrative automatically and with a high degree of accuracy in different languages.
The Temenos generative artificial intelligence solution is part of the Temenos platform and is packaged with Temenos’ digital banking capabilities. It can be independently deployed for banks to connect with their existing core system through APIs with little or no additional integration. The new product provides a secure generative artificial intelligence solution where the models are trained on anonymous data. In production, the final models are deployed in the customer environment without exchanging information with a third party.
In a pilot with BlueShore Financial, Temenos said its generative artificial intelligence solution was used to provide personalized insights on income and expenses. With their banking app, clients could view income from sources like salary, interest, dividends, and rental income, with sections aligned with Canada’s tax categories to check their intra-year tax burden and reconcile end-of-year tax reporting. A ‘Year in Review’ feature is also available with statistics on spending and saving and comparisons to others in their cohort.
“At BlueShore Financial, we are passionate about improving our clients’ financial well-being in an interconnected, digital world,” BlueShore Financial CIO Fred Cook said. “Data and artificial intelligence (are) critical to our strategy, and we are excited to safely and securely leverage new technologies which deliver innovative new customer experiences.”
“We have continually invested in embedding Explainable AI and ML capabilities into our banking platform and make available all products through an easy-to-use interface or APIs,” Temenos president of product and chief operating officer Prema Varadhan added. “Building on our experience with Explainable AI, Temenos is now harnessing the power of Generative AI as the next step in a strategic AI roadmap, powering the future of banking with ethical, secure, and responsible deployment. We believe that such transparency and explainability will be critical for all AI use cases in banking to help satisfy regulatory requirements.”
Explainable artificial intelligence software capabilities are embedded in multiple areas within Temenos solutions, including wealth management such as with their robo advisor, anti-money laundering, attrition minimization, credit scoring, customer management, customer support, cross-selling, smart money management, collections optimization, tailored pricing, and an active ongoing roadmap for enhancing wealth robo advisor.
By embedding artificial intelligence and machine learning into its products, Temenos said it has accelerated the release of explainable models that underpin multiple – and growing – artificial intelligence use cases that focus on creating seamless customer journeys and automating manual processes with self-learning capabilities.
Transaction classification is the first Temenos product to leverage generative artificial intelligence, and the company is exploring further use cases for the technology, such as in chatbots and customer interfaces. They can also guide customer journeys and triage and route customer queries.