Swiss core banking provider Temenos has introduced an innovative generative AI tool designed to automatically classify customer banking transactions. This development aims to empower financial institutions by delivering personalized insights and tailored recommendations.
The new tool is capable of accurately analyzing and labeling customer transactions derived from free-text narratives in multiple languages. This swift and precise classification is essential for a variety of banking applications, including determining the next best product offers, predicting cash flow, providing budgeting guidance, conducting peer group analyses, and assessing customer attrition rates.
Integrated into Temenos’s core banking suite, this tool is also available independently through an API plugin for non-customers.
In a pilot collaboration with BlueShore Financial, the large language model was utilized to generate personalized insights related to income and expenses. Users can track income streams from diverse sources like salaries, interest, dividends, and rental income. The app features sections aligned with Canadian tax categories to facilitate year-to-date tax burden reconciliation and finalize end-of-year tax reporting. Additionally, the ‘Year in Review’ feature offers users insights into their financial achievements, including spending and saving statistics and comparisons with peers.
Prema Varadhan, President of Product and COO at Temenos, states, “Building on our experience with Explainable AI, Temenos is now harnessing the potential of Generative AI as a strategic advancement in our AI roadmap. Our focus is on fostering ethical, secure, and responsible deployment to shape the future of banking. Transparency and explainability will be crucial for all AI initiatives in banking to ensure compliance with regulatory standards.”
The transaction classification tool marks Temenos’s first application of Generative AI, and the company is actively exploring additional use cases for the technology, including its implementation in chatbots, customer interfaces, and optimizing customer journeys as well as query triage and routing.