Temenos buys Explainable AI firm Logical Glue

Temenos buys Explainable AI firm Logical Glue

Swiss banking software provider Temenos has acquired Logical Glue, a London-based Explainable AI (XAI) specialist with financial services customers in the UK and Europe. Financial terms were not disclosed.

The Logical Glue XAI platform will be immediately embedded within the cloud-native, cloud-agnostic Temenos banking platform and will be available with all Temenos software including digital front office, core banking, wealth management, payments and fund administration products.

The move will see AI credit scoring models available worldwide and, Temenos claims, will take manual underwriting to the next level through AI automated decision making and recommendations. Additional use cases include robo-advisor, intelligent pricing, product recommendation, real-time fraud detection and debt collection products.

Temenos says that Logical Glue’s Explainable AI platform addresses one of the key challenges for banks using AI applications, which is that they typically operate as ‘black boxes’ offering little if any discernible insight into how they reach their decisions.

Regulators globally are increasingly mandating that financial institutions should be able to explain to their customers the results of automated decisions that affect them.

Just this week, The UK's Financial Conduct Authority revealed it is partnering with the Alan Turing Institute to explore the transparency and explainability of AI in the financial sector. The project will aim to meet one of the biggest challenges in customer-facing applications of AI - how to explain to a consumer why a product or service has been denied by a machine.

Max Chuard, CEO, Temenos, says: "This is a highly strategic acquisition for Temenos as it accelerates our AI roadmap, brings an impressive team onboard that is immersed in AI and Machine Learning and builds upon the work carried out by Temenos’ AI Centre of Excellence.

"Explainable AI is a game changer for our customers. It will give them greater transparency and explainability of AI automated decisions and recommendations helping them harness AI technology to create seamless customer journeys and automate manual processes while meeting the growing regulatory demands."

Comments: (1)

Justin Staines
Justin Staines - YELLOW SUBMARINE LTD - Bedford 20 July, 2019, 10:43Be the first to give this comment the thumbs up 0 likes

As the first guy on the ground in December 2013 I played a central role in bringing the Logical Glue platform to market and securing key customer wins and new partnerships. The vision for LG was pretty strong, a data science platform without data scientists - however it soon got torn apart by other data scientists, especially the fuzzy logic models which never had the same gini coefficient as linear regression. They would just go up against Hani, who was and still is a real clever guy and probably apart from all the deals I brought in lol the reason they are valuing LG at £12M , which is great news for me by the way! After coming out of stealth for just over a year I have now cofounded www.yellowsubmarine.io with my business partner Nash who just had a successful exit to Motorola with his last company, and we developed Heimdall (named after the Norse God of Foresight and also one of my favourite characters in the Avengers™ franchise), an explainable AI machine learning platform using multicollinearity algorithms enabling it to be open box and the decisions transparent in what I call The Magic Donut™ . Unlike other ML platforms like Datarobot which again start pandering to data scientists with every different type of model you can imagine, SVM’s, random forests etc, we just use one model and I want to democratise prediction for everyone just like Microsoft did with Word and like typing pools are now in the dim and distant past eventually so will rooms of data scientists. We have also just launched our CrowdAlpha email alert platform which runs on the same multicollinearity algorithms which I’ve coded from scratch and gives you from 2 hours to 2 days foresight of individual security movements , take a look here and you can even buy from my online shop www.crowdalpha.co.uk)

 

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