Image source: tearsheet.co

Revolutionizing Banking Through Collaboration

In a rapidly evolving financial landscape, the demand for innovative technology solutions is at an all-time high. As traditional banks face new challengers from fintech startups and digital-first banking solutions, the banking sector is increasingly turning to technology vendors for transformative tools. Leading the charge is Temenos, a global banking technology firm dedicated to redefining how banks operate through advanced artificial intelligence (AI) solutions. The distinctive aspect of Temenos' approach lies in their commitment to co-creation—partnering directly with banks in the development of AI products rather than simply providing off-the-shelf solutions.

This strategy allows Temenos to craft solutions that address specific challenges faced by banks, ensuring that the resulting AI applications are not only innovative but directly aligned with the operational realities of financial institutions. By working collaboratively, banks can provide insights that drive the development of products designed to meet their unique needs, leading to enhanced efficiency and customer satisfaction.

The Temenos Product Manager Copilot: A Case Study in Innovation

A prime example of Temenos' pioneering efforts is the introduction of the Temenos Product Manager Copilot in May 2025. This generative AI assistant represents a significant leap in how banks can approach product development. Integrated within Temenos’ Retail core banking solution, the Copilot utilizes the Microsoft Azure OpenAI Service to provide a conversational interface tailored for product managers, IT teams, and customer service representatives.

What truly sets the Copilot apart is its iterative design process, which incorporates direct feedback from banking partners such as Banque Internationale à Luxembourg. This collaboration ensures that the tool effectively addresses real-world requirements. Rather than presenting a static software package, the Copilot provides dynamic capabilities that enable users to design, launch, test, and optimize financial products in real-time, streamlining the entire product lifecycle from conception to execution.

With banks under increasing pressure to innovate quickly and effectively, the Copilot's ability to facilitate product design and improve operational efficiency has tremendous implications. By actively involving bank personnel in the development process, Temenos enhances the utility of the tool, ensuring it meets the specific demands of the banking sector while incorporating essential features that streamline workflows.

Enhancing Compliance with the FCM AI Agent

Continuing in the same vein of collaboration, Temenos also developed the FCM AI Agent, another notable product created alongside Banque Internationale à Luxembourg. This cutting-edge compliance engine employs agentic AI to continuously evaluate and screen transactions against both global and domestic watch lists in real-time.

The necessity of robust compliance mechanisms cannot be understated in today's regulatory environment. Financial institutions are faced with stringent requirements to minimize risks associated with anti-money laundering (AML) and counter-terrorism financing (CTF). The FCM AI Agent effectively addresses these challenges by reducing false positives—a common pain point for compliance teams—thereby enhancing the overall efficiency of regulatory adherence. Furthermore, the technology provides clear, explainable intelligence to investigators, which is vital for maintaining compliance and ensuring transparency in decision-making processes.

By co-developing the FCM AI Agent directly with banks, Temenos is not only delivering a solution that meets current industry standards but also one that optimally serves the needs of banks in real-world applications. This approach fosters a strong foundation for continual improvement, with the possibility of ongoing updates based on real-time feedback from end-users.

The Benefits of Co-Creation in Financial Technology

Temenos' co-creation methodology offers numerous benefits that extend beyond the development of individual products. One of the key advantages is the enriched knowledge transfer between Temenos and its banking partners. As banks engage in the product creation process, they gain deeper insights into technological capabilities, which can further empower their workforce and enhance their overall tech savviness.

This not only allows banks to tailor AI products more effectively to their needs but also fosters a partnership ethos. Instead of a traditional vendor-client relationship, banks and Temenos form a collaborative alliance focused on mutual growth and innovation. Such partnerships are essential in a landscape that is constantly evolving, providing both parties with a framework to innovate rapidly and adapt to changing market conditions.

Moreover, the iterative nature of co-creating solutions ensures that products are continually refined, incorporating feedback and adapting to new challenges or opportunities as they arise. This agility is vital in the fast-paced financial services environment, driving not only product enhancement but also a culture of innovation within banking institutions.