Temenos launches AI-based Suspicious Activity Prevention to combat fraud in real-time

Temenos (SIX:TEMN), the banking software company, today expanded its leading financial crime mitigation product to include an AI-based Suspicious Activity Prevention solution protecting banks and their customers from fraud.  Demand for financial compliance and the increasing levels of financial crime are putting huge pressure on banks. Their legacy processes have grown so complex with a high level of manual work for screening alerts and other fraud mitigation activities. Each manual step is inefficient and prone to errors. High level of false positive rates exacerbate this problem. These challenges mean banks are facing greater reputational risk, growing fines and loss to fraud, as well as spiralling costs.

Through its innovative and award-winning technology the Temenos Financial Crime Mitigation (FCM) product is able to offer banks the lowest levels of false positives in the industry (2.5% compared to industry rates of approximately 5% to 7%) while also reducing banks total cost of ownership (TCO) by approximately 50 percent. Through the use of sophisticated filtering techniques and advanced analytic capabilities the Temenos FCM product range has helped over 100 clients globally such as UBS upgrade their capabilities, reduce their manual processes and meet their clients’ expectations of rapid digital banking services.

The new Suspicious Activity Prevention capability further enhances the Temenos Financial Crime Mitigation product which includes surveillance and analytical capabilities, sanctions screening, anti-money laundering, enhanced due diligence (KYC) and now fraud. The new module uses a combination of AI-based, sophisticated, self-learning algorithms and expert business rules to block suspicious transactions based on real-time behavioral analysis, allowing clients to identify and trap fraudulent and money laundering transactions as they occur. It uniquely builds customer profiles to detect and stop suspicious transactions that deviate from normal and expected behavior. The Suspicious Activity Prevention module is configurable by any designated bank official, offering complete control to the business.

According to Daniel Mayo, Chief Analyst, Financial Services Technology, Ovum: Temenos has a strong specialism in services related to anti-financial crime, particularly in compliance and customer screening and is top-ranking in KYC/CDD and AML capabilities. The FCM product family has been designed to be highly configurable to work with multiple modern and legacy back-end systems, with transaction and alert data processed in real time. Temenos provides a specialist offering, evidenced with a strong market position, and should be considered by financial institutions looking to review their financial crime solutions.

Temenos Financial Crime Mitigation (FCM) product offers:

  • Lowest levels of false positives in the industry, through in-built alert reduction and review automation tools. Banks report an average global false positives rate of 2.5% compared to industry rates of approximately 5% to 7%. This minimizes manual intervention and staff costs and massively improves Straight Through Processing (STP) rates.
  • Substantially lower Total Cost of Ownership (TCO) particularly when pre-integrated to Temenos banking products. Indicatively, banks using Temenos’ FCM software are able to reduce their TCO by approximately 50 percent.
  • The most expansive aliases database. This unique knowledge base enriches transactions to ensure all parties and locations are fully identified, including those attempting to circumvent detection rules, thus ensuring a tighter net and maximum protection.

Temenos is the only global banking software company offering pre-built FCM protection within its core banking software. FCM is available as a standalone product and can also be integrated with any core banking solution. It can be deployed on-premise and is also available as a SaaS offering running on Temenos Cloud. It is the only complete FCM product on Microsoft AppSource.

Adam Gable, Product Director – Financial Crime MitigationTreasury & Risk, Temenos, stated: We are proud to be helping over 100 clients globally to tackle their financial crime, compliance and screening needs. Our financial crime mitigation product is a complete solution offering banks an unparalleled line of defence across all channels allowing them to not only avoid regulatory fines, detect fraud and mitigate reputations risks but also give our clients the confidence to bring new and innovative products to market through multiple channels.

Author: Yash Hirani

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