Switzerland-based banking software company Temenos has rolled out a secure solution for banks using Generative AI to automatically classify customers’ banking transactions. A specialist in Explainable AI, Temenos has deployed Generative AI and Large Language Models (LLM) in banking with a solution for transaction classification.

These two technologies can better understand language, video, audio, images, and code to generate new outputs of different modalities. Hence, the rise of Generative AI promises to unleash a wave of innovation and personalisation, transforming how organisations interact with customers. Temenos’ new Generative AI solution enables banks to classify and label customer transactions from free text narrative automatically and with a high degree of accuracy in different languages.

Fast and accurate classification of transactions is important for many banking use cases, from next best product, cashflow prediction, customer budget advice, peer grouping, customer attrition analysis, and many others. Seamless integration and enhanced security The Temenos Generative AI solution is part of the Temenos platform and is packaged with Temenos’ digital banking capabilities. Furthermore, it can be deployed as an independent capability for banks to connect with their existing core system through APIs with little or no additional integration.

The new product provides a secure Generative AI solution where the models are trained on anonymous data and in production, the final models are deployed in the customer environment with no need to exchange information with a third party. In a pilot with BlueShore Financial, Temenos’ Generative AI solution was used to provide personalised insights on income and expenses. With their banking app, clients would be able to view income from various sources such as 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, with statistics on spending and saving, and comparisons to others in their cohort, provides an interesting way for customers to view their financial highlights. Officials from BlueShore Financial said that they are passionate about improving their clients’ financial well-being in an interconnected, digital world. Data and AI is critical to their strategy, and they are excited to safely and securely leverage new technologies which deliver innovative new customer experiences.

Temenos’ representatives highlighted the significance of introducing explainable AI in the financial industry. They have consistently invested in integrating this technology into their banking platform, with a focus on user-friendliness. Now, they're moving towards Generative AI to shape the future of banking responsibly, believing that transparency is crucial to meeting regulatory standards in AI applications.

Integration of Explainable AI capabilities across Temenos' solutions Explainable AI software capabilities are embedded in multiple areas within Temenos solutions including Wealth Management such as with our Robo-Advisor, Anti Money Laundry, attrition minimization, Credit Scoring, Customer management, Customer support, Cross-Selling, smart money management, Collections Optimisation, Tailored Pricing, and an active ongoing roadmap for enhancing Wealth Robo-Advisor. By embedding AI and Machine Learning into its products, Temenos has accelerated the release of explainable models that underpin multiple – and growing – AI 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 AI and the company is exploring further use cases for the technology, such as in chat bots and customer interfaces as well as guiding customer journeys and triage and routing customer queries.

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