Temenos has unveiled what it claims to be the first Responsible Generative AI tools specifically developed for the core banking sector.
The company launched the solutions to meet growing demand among financial institutions for secure, explainable, and efficient AI technologies that enhance productivity and help unlock business value from complex data systems. The move also addresses banks’ increasing concern around transparency, compliance, and responsible AI use.
Temenos, known for its cloud-native and API-first banking platform, has consistently invested in artificial intelligence as a cornerstone of its innovation roadmap. The firm has previously patented its Explainable AI (XAI) solutions and is now expanding that expertise into the Generative AI space. Its technology serves hundreds of financial institutions worldwide, helping banks modernise operations and deliver personalised services.
The newly launched Responsible Generative AI tools integrate directly with Temenos Core and its Financial Crime Mitigation (FCM) platform. These solutions allow bank users to engage with data using natural language queries, producing instant insights and reports that reduce time-to-decision and operational friction. For example, queries such as identifying top-performing customers by demographics can be answered on the spot.
Temenos has ensured the solutions remain explainable, secure, and auditable, with a robust permissions framework that meets regulatory standards. The platform supports deployment across a wide range of environments, including on-premise setups, public and private clouds, and Temenos SaaS.
The applications for the technology span across customer-facing operations, middle-office functions, and product development. Banks can use the tools to create hyper-personalised financial products in real-time, based on client behaviour and preferences. The technology can also streamline reporting and enhance straight-through processing by pinpointing operational bottlenecks.
Temenos plans to extend these AI capabilities into its Wealth and Digital platforms later this year. A feature already being piloted uses Generative AI to automatically classify banking transactions—a first in the industry.
Temenos president product and COO Prema Varadhan said, “We all use AI in our daily lives and benefit from the personalized services and insight. Temenos Explainable AI offers transparent, auditable insights while our Generative AI infused platform delivers these insights instantly in an intelligent and personalized way. Temenos ensures responsible AI practices by providing explainability, security, safe deployment, and banking-specific capabilities. With our AI platform, banks can rapidly implement real-world use cases that enhance efficiency, boost profitability, and create hyper-personalized customer experiences.”
CCS Insight chief analyst Bola Rotibi said, “GenAI heralds a new era of efficiency and competitiveness in banking, with the potential to revolutionize customer experiences, streamline processes, and uncover actionable insights. Banks are naturally cautious in embracing generative AI to the full and want to ensure they do so responsibly.
“A proven track-record in delivering responsible AI will be vital for financial institutions to confidently experiment and deploy generative AI models for critical business functions across the enterprise. Providers such as Temenos that place responsible AI operations at the heart of their banking solutions, are well-placed to give financial institutions confidence to experiment and deploy GenAI solutions to critical business functions across the enterprise.”
MidWestOne Bank, headquartered in Iowa and servicing around 140,000 customers across four states, previously successfully implemented Temenos Digital Onboarding as Software as a Service (SaaS) on Amazon Web Services (AWS).
The implementation was facilitated by RCG Global Services, a North American Temenos Delivery Partner.
The partnership with Temenos allows MidWestOne to significantly improve customer acquisition and retention through enhanced digital channels. The bank now leverages Temenos Digital Onboarding to offer quick and efficient customer onboarding experiences, meeting the rising expectations for speed and ease in digital banking while also boosting operational efficiency.
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