Temenos has launched Explainable AI (XAI) models to enable banks to rapidly offer loans to SMEs during the COVID-19 crisis.
This comes as businesses have seen their cash flow disrupted due to strict social distancing measures. Temenos’ aim is to allow banks to accelerate digital onboarding, conduct eligibility checks and process loan applications for SMEs and retail customers.
Speaking to RBI, Hani Hagras, Chief Science Officer at Temenos, said: “What we are seeing in the SME sector is a surge in SME loans. Before COVID-19, the situation was much different because the volume of loans was quite low. What completely changed is that the volume has immediately exceeded the manpower, which existed before to handle the processing. This is causing huge disruption for businesses trying to get access to loans.
“In addition, when processing applications, different banks rely on human input, which takes a lot of time. So, what we are offering is a system using XAI, which can be deployed in a few days and will automate the process of eligibility checks. This will give people who are eligible immediate access to cash.”
Temenos’ XAI models enable banks to take into account a range of variables when making lending decisions. These include additional incomes, new cost reductions, and alternative forms of collateral.
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The models can instantly calculate the impact of the new variables and suggest additional terms and conditions.
Max Chuard, Temenos CEO, added: “These are challenging times for small businesses in particular. I am proud that with our technology we can provide banks with a modern digital banking platform and decision-making capabilities. This will allow them to move incredibly fast and compress projects that would usually take months into days.”
The time to invest in XAI
Speaking on Artificial intelligence, Hagras said: “Some people might decide it is not the time to invest in XAI and that it is technology for the future. But I think this is the wrong attitude to have. Currently, we are seeing huge stress being placed on workforce’s and there is a need to support these people.
“So by having technology we can trust teaches us that now is the time to use artificial intelligence – not as a technology for tomorrow but as a technology for today. It will increase the resilience of our economies and make sure we maximise the well being of our people.”
The XAI models available worldwide include:
- Temenos AI – SME Smart Decisioning: Provides centrally created support for decision makers, for on-boarding, edibility checks and rapid loan processing.
- Temenos AI – Urgent Relief Loan: Identifies customers with a significant drop in income, who are at financial risk and offer further credit or credit deferral products.
- Temenos AI – Personalisation: Offers personalised products to customers in real-time based on their changing behaviours and needs identified using Explainable AI models
- Temenos AI – Loan Pre-Approvals: Lending pre-approval for all customers. Expedite short- term urgent lending to the greatest number of customers.
- Temenos AI – Digital Financial Advice: Identifies customers who are unlikely to be able to continue without a new income. Hence, both reducing risk and offering the opportunity to provide suitable financial solutions to them.