Temenos Introduces Self-Service Financial Crime Mitigation Solution on Temenos Banking Cloud

Temenos today announced that it is the first to market with a SaaS offering that enables banks to manage financial crime mitigation (FCM) with composable banking services on a secure, continually evolving, self-service platform.

Temenos’ FCM-as-a-Service delivers pre-built configurations aligned to global industry regulations. Now with self-provisioning and automatic upgrades for fast compliance and time to value, banks can achieve lower total cost of ownership and improved customer service.

Temenos FCM is used by over 300 banks from global tier ones such as UBS to regional banks, neobanks and digital only banks such as Flowe. Temenos CEO Navigator, a survey-based customer value benchmarking and advisory service, shows that Temenos clients using the FCM solution, benefit from lower false positives, and increased risk and compliance efficiency. Furthermore, these banks have 92% faster client onboarding time compared to banks that are not using Temenos FCM.

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Temenos FCM, which uses patented Explainable AI (XAI), helps banks make smarter, faster decisions by quickly determining if an alert is genuine or not to improve accuracy and productivity. This flexible, pay-as-you-go solution, scales elastically, guaranteeing high availability and performance for peak loads or anticipated growth. The service includes industry standard certifications spanning risk, security and data privacy without the need for new IT infrastructure. At small and mid-size banks where the cost of FCM is disproportionately high, this can significantly boost profitability and reduce operational risk.

The FCM service can be consumed through the Temenos Banking Cloud. Easy to deploy, the SaaS solution comes pre-integrated with Temenos core banking platform or with an API catalogue for fast connection to any other third-party core.

The Temenos banking service covers all financial crime mitigation needs from sanction screening and Politically Exposed Person (PEP) matching to AML transaction monitoring, payment fraud mitigation and KYC customer risk assessment. It delivers industry-leading levels of detection accuracy and false positives (under 2% vs industry average of 7% and above), enabling banks to reduce overheads and costs while delivering a better customer experience. Banks composing their FCM service on Temenos Banking Cloud can deploy the complete FCM solution or in parts to meet their immediate needs, and add on capabilities as their needs change, paying only for what they use.

Chuck Subrt, Director, Fraud & AML Practice, Aite-Novarica Group said: “With a rising number of threat vectors and tightening regulations, many legacy financial crime systems struggle and may no longer be enough to meet today’s demands. Many banks are investing in technology to address these challenges. A 2021 Aite-Novarica Group study indicated about two-thirds of institutions will increase spending on AML technology. As such, institutions are looking for offerings like Temenos’ FCM SaaS solution that can deliver fast time to value while empowering compliance teams to meet global regulatory requirements. Flexibility and predictable cost are critical considerations for banks especially as the volume and high rates of false positives are a recurring pain point. This can be particularly relevant to mid and smaller banks where the cost of implementing and managing financial crime mitigation can be disproportionally high.”

Adam Gable, Product Director, Temenos, said: “Temenos FCM-as-a-Service is the first offering where banks can self-provision and consume financial crime mitigation as a service. This flexible SaaS solution can help neo and challenger banks get to market faster and incumbent banks to future proof their financial crime mitigation with a continually evolving platform so they never need to upgrade again. FCM as-a-service is also particularly attractive to existing Temenos clients who wish to move to the cloud. Tackling financial crime is growing ever more complex; with FCM-as-a-Service, banks can stay ahead of the threat – and never upgrade again.”