Swiss financial technology company Temenos has introduced its latest innovation, the FCM AI Agent, at the Temenos Community Forum in Madrid, Spain.
This new tool is designed to improve the detection and prevention of financial crime by leveraging artificial intelligence (AI) for real-time assessment and compliance frameworks. The product is now available for general use.
The FCM AI Agent provides financial institutions with enhanced capabilities to detect, investigate, and prevent sanctions violations against both global and domestic watchlists.
Temenos chief product and technology officer Barb Morgan said: “By utilising advanced AI technology, the solution aims to significantly reduce false positives, achieving rates below 2% in live deployments, compared to an industry average of 5-8%.
“This reduction is projected to enhance customer satisfaction, lower compliance risks and costs, increase employee productivity, and boost revenue.”
Compliance costs represent a major challenge for financial institutions, with over 40% attributed to personnel due to reliance on manual processes. Such processes can overburden compliance teams and potentially hinder their ability to identify genuine threats effectively.
By minimising false positives, the FCM AI Agent allows more seamless payment processing without manual intervention, said Temenos. This adjustment enables compliance teams to focus on higher-risk cases and improves customer satisfaction by ensuring timely processing of legitimate payments.
The increased use of sanctions as strategic policy tools heightens the need for real-time and accurate compliance measures. Additionally, the rapid global expansion of instant payment systems, driven by open banking and account-to-account wallet transactions supported by banks, increases the demand for transaction screening capabilities in financial institutions.
The FCM AI Agent is said to be adaptable for deployment either on-premises or in cloud environments, whether public or private. Its features include patented technology and an interface that explains AI operations and decision-making processes in straightforward terms.
The tool is pre-integrated with Temenos FCM and is claimed to have demonstrated high accuracy that meets regulatory standards in screening processes.
Moreover, the FCM AI Agent allows a quick transition from data gathering to model application, facilitating the efficient addressing of banking requirements. It is accessible as an on-premise solution, via cloud services, or as a Software-as-a-Service (SaaS) through the FCM interface.
Temenos said that it developed the FCM AI Agent with a focus on customer needs in collaboration with a European tier-1 bank through its Design Partner Program.
