Fintech software provider Temenos (SIX: TEMN) announced on Wednesday it is increasing the development of Artificial Intelligence capabilities throughout its digital banking platform. The company reported that its Temenos AI initiative will enable banks to offer personalized services to customers, augment users’ decisions with data-driven machine intelligence, and maximize straight-through-processing (STP) rates for financial transactions at reduced cost with limited or no human intervention.
Temenos noted that as part of this global initiative, it has launched a Centre of Excellence for Artificial Intelligence as its innovation engine. The company explained:
“The Temenos AI Centre of Excellence will foster a collaborative ecosystem with Temenos’ banking clients and partners to help identify and validate use cases where AI could have an immediate impact on customer experience, as well as operational excellence, and hence improve the bottom line.”
Temenos also revealed that the initiative will involve injecting AI throughout its packaged, digital banking platform available on-premise and in the cloud. The company is now assisting banks to get “AI-ready” by providing modern data architectures and integration tools that promote real-time data quality and governance and allow high volumes of data to be consumed by AI and machine learning-based applications. Speaking about the initiative, Prema Varadhan, Vice President of AI Centre of Excellence, Temenos, went on to add:
“Our drive for innovation is constant. We invest over 20% of our annual revenues in R&D, an amount that surpasses what a global Tier 1 bank would typically spend on its core banking systems, the bulk of which is usually spent on maintenance of legacy systems rather than innovation. Our vision is to build and fully embed own and third party AI capability throughout our banking platform to improve efficiency, automate processes, and crucially provide personalized customer engagements.”