Temenos launch SaaS AI Fund Administration Tech to address volatility

Temenos, the banking software company, today announced that it’s the first to launch a SaaS Explainable AI (XAI) model to help fund administrators, insurers and asset managers and custodians improve operational efficiency by leveraging static and transactional data patterns, coupled with human judgement and expertise.

Using Temenos XAI technology, fund accounting teams can reduce the number of manual interventions in their exceptions management processes by identifying price threshold breaches caused by the extreme market volatility caused by COVID-19. This can help reduce manual validation by up to 80%. Furthermore, fund administration teams can reduce their operational risk and cut down costs by identifying false positive exceptions faster. The Temenos XAI 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.

With the power of Temenos XAI, fund administrators can benefit from more efficient and accurate workflows and exception management capabilities. Unique to this technology, clients benefit from fully transparent and explainable AI-decisions. Temenos XAI provides simple, easy-to-understand explanations in human language helping users identify why exceptions occurred, so they can relay that information back to regulators and customers.

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; it can be deployed within weeks and scales as needed, enabling clients to respond to the current market and quickly achieve­­ results.

Paul Sinthunont, Aite Group, said: “The impact of COVID-19 on world markets and investors has been unprecedented. 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.”

Hani Hagras, Chief Science Officer, Temenos, said: “Temenos Multifonds Global Accounting is a best in class system and we are now accelerating it with the SaaS-based XAI model. 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.”

Temenos was awarded the highest status in Aite’s Matrix Evaluation of Investment and Fund Accounting Systems report. Temenos Multifonds Global Accounting also gained the highest status in five portfolio management and accounting solution categories by Adox Research.

Temenos has been providing class-leading fund administration software for over 20 years. 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. Temenos Multifonds Global Accounting is an agile and scalable product for fund managers’ key asset servicing, position keeping, valuation and accounting functions. It allows the consolidation of fragmented legacy systems into a single, global solution that combines sophisticated workflow and production management techniques to drive enhanced automation and efficiency.