Temenos (SIX: TEMN), the banking software company, today announced the release of the Temenos Peer Group Identifier, an AI-powered financial profiling tool to assist banks in improving their customer experiences by focusing their financial crime detection efforts on the highest risk transactions.
This launch strengthens Temenos’ award-winning Financial Crime Mitigation (FCM) product which covers watch-list screening, anti-money laundering, fraud prevention, and KYC, delivering industry-leading levels of detection and false positives.
More than 200 clients use FCM which offers pre-built financial crime mitigation protection across all Temenos products and is also available as a standalone product.
The new Temenos Peer Group Identifier capability uses advanced statistical analysis and machine learning to assess large quantities of data to form a unique financial ‘DNA’ for each customer. Based on their income flow, transaction types, spending patterns and the extensive data set maintained in the Temenos Financial Crime Mitigation product, it then groups customers with a similar ‘DNA’ into peer groups which are then used to provide a measure of normal financial behavior in relation to customers with a similar financial DNA.
This level of enhanced detection improves the customer experience significantly as banks can focus their efforts on higher risk groups while reducing the need to seek additional level of verification from low risk customers.
Martin Stiller, senior research analyst, IDC, said: “Banks need to deliver frictionless omni-channel digital experiences while at the same time improving fraud detection, thereby protecting their customers and their own reputations. Temenos Peer Group Identifier is an innovative tool which helps banks understand where their risk is, so they can apply resources effectively and stop fraudulent activity.”
Adam Gable, product director - financial crime mitigation treasury and risk, Temenos said: “Temenos Peer Group Identifier provides high protection without unnecessary interruptions and inconvenience to customers. Through the use of AI and machine learning, we enable banks to derive highly valuable insights, which simply wouldn’t be possible with conventional techniques. I’m excited about what this delivers to banks and ultimately their customers in terms of protection, and convenience. Temenos FCM is the most complete financial crime prevention solution covering a multitude of scenarios from AML to fraud detection.”
This development is the result of a close collaboration between Microsoft AI in Redmond and Temenos’ AI Centre of Excellence. The models were built using Azure and can be deployed on a variety of technology platforms. This means that the solution can scale out for individual banks as needed, which is particularly important since the processing demands of AI solutions vary and banks only pay for the capacity required.
Temenos Peer Group Identifier is part of the FCM product, which is embedded within the cloud-native, cloud-agnostic Temenos banking platform. It’s available to all Temenos software products including digital front office, core banking, payments, wealth management and fund administration or standalone. This will provide banks with the next generation of AI-powered FCM capabilities that can run on any public cloud, as a service or on premise.