Temenos has introduced new Explainable AI (XAI) models to enable banks and credit unions to issue loans to small and medium enterprises (SMEs) whose cash flows have been disrupted due to COVID-19 (coronavirus) pandemic.
The Swiss-based banking software developer said that its XAI models allow banks to speed up several processes such as digital onboarding, conducting eligibility checks and loan application processing for SMEs and retail customers.
Temenos XAI models’ results are explainable to end-users and regulators in human language
The XAI models help banks in taking fast lending decisions that transparent and explainable in human language to end-users, customers and regulators.
The models can also help banks to identify the right products with acceptable levels of risk for both customers and the bank.
Temenos claims that its SME models offer an average of more than 25% greater accuracy compared to the risk score provided by leading credit bureaus.
The accuracy offered by the models is expected to enable banks to increase their pass rate by 20% while keeping defaults under control.
Temenos CEO Max Chuard said: “These are challenging times for small businesses in particular. As the leader in banking software, Temenos is committed to innovation that not only keeps banks and the global economy running, but also helps SMEs and retail customers access funding at a time of financial distress.
“We are delivering our cloud-native, advanced AI banking software as SaaS to enable banks qualify and process loans rapidly.
“I am proud that with our technology we can provide banks with a modern digital banking platform and decision-making capabilities, allowing them to move incredibly fast and compress projects that would usually take months into days.”
The new models are available on Temenos’ AI portfolio or can be integrated with its digital omnichannel product Temenos Infinity.
The XAI models also enable financial institutions to consider a wide array of variables while taking lending decisions, including additional incomes, new cost reductions, and alternative forms of collateral.