Temenos launches SaaS Explainable AI model for custodians and fund administrators

Explainable artificial intelligence model provides transparent and explainable AI-decisions in human language to help operational efficiencies and reduce manual validation.

By Jonathan Watkins

Temenos is set to launch a SaaS Explainable AI (XAI) model to help fund administrators and custodians improve operational efficiency by leveraging static and transactional data patterns, coupled with human judgement and expertise.  

The new technology aims to provide transparent and explainable AI-decisions in human language and help users identify why exceptions occurred, which they can relay back to regulators and customers.  

The Swiss tech vendor said the new functionality will reduce manual interventions by up to 80%, speeds up exception management, and increases efficiency. The launch follows the extreme market volatility caused by COVID-19, where the technology identified several price threshold breaches during the crisis. 

“With this technology innovation we are enabling our fund administrator clients to use AI to reduce manual interventions and detect potential breakdowns in workflow and speed up exception management related to price movements. This future-proofs their operations against black-swan events and increases overall efficiency and productivity,” said Hani Hagras, chief science officer, Temenos. 

The SaaS XAI model can also be trained to uncover potential breakdowns in operational workflows before they occur, saving further time and costs. 

The model can be constantly fine-tuned, based on both data and human judgement, to consider volatility and how prices typically move in line with increased market movements.  

Effective from the first day of operation, the XAI model allows Temenos Fund Administration clients to understand the different patterns, profiles and behaviors as soon as it is switched on. The solution can be deployed on-premise or as a cloud-native solution and can be deployed within weeks.  

“The impact of COVID-19 on world markets and investors has been unprecedented,” said Paul Sinthunontsenior analyst, Aite Group.Temenos XAI technology can help fund administrators respond to COVID-19 and other black swan events by monitoring pricing movements to identify threshold breaches faster and reduce the number of manual interventions at a time when most teams are working remotely.”  

Temenos will look to build on its current relationships with top fund administrators with this service. At present, Temenos Multifonds Global Accounting is used by nine of the top 15 global administrators and services over 30,000 funds at a value of over $7 trillion.