The new Generative AI-powered solution, a part of the Temenos platform, will help the banks securely classify and automatically label customer transactions from free text narratives, with high precision and in different languages


Temenos rolls out new transaction classification solution. (Credit: Kaitlyn Baker on Unsplash)

Temenos, a provider of enterprise software for banks and financial services, has rolled out a Generative AI-powered solution that enables banks to automatically classify transactions.

The new Generative AI solution, a part of the Temenos platform, features the financial software company’s digital banking capabilities.

The tool will help banks classify and automatically label customer transactions from free text narratives, with high precision and in different languages.

Its models are trained on anonymous data and the final models are deployed in the customer environment, which prevents the need to exchange information with a third party.

Also, the new solution eliminates additional integration, as it can be independently deployed at banks and can connect with their existing core system through APIs.

Temenos claimed that it is the first company to deploy Generative AI and Large Language Models (LLM) in banking, for a transaction classification solution.

Temenos product president and COO Prema Varadhan said: “We have continually invested in embedding Explainable AI and ML capabilities into our banking platform and make available all products through an easy-to-use interface or APIs.

“Building on our experience with Explainable AI, Temenos is now harnessing the power of Generative AI as the next step in a strategic AI roadmap, powering the future of banking with ethical, secure, and responsible deployment.

“We believe that such transparency and explainability will be critical for all AI use cases in banking to help satisfy regulatory requirements.”

According to the Swiss financial software company, traditional AI/ML systems are already improving operations and enhancing customer experiences.

However, Generative AI and LLM can better understand language, video, audio, images, and code to provide new outputs in different modalities, said Temenos.

Its new transaction classification solution will help the banks provide personalised insights and recommendations, along with more engaging and intuitive digital banking experiences.

The rapid and accurate classification of transactions is key for many banking use cases, from cash flow prediction to customer attrition analysis, said Temenos.

Canadian credit union BlueShore Financial has tested Temenos’ new Generative AI solution to provide personalised insights on income and expenses.

BlueShore Financial CIO Fred Cook said: “At BlueShore Financial we are passionate about improving our clients’ financial well-being in an interconnected, digital world.

“Data and AI is critical to our strategy, and we are excited to safely and securely leverage new technologies which deliver innovative new customer experiences.”