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."
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