AI and Machine

Learning in FCM

and Payments:

Hype or Added

Value?

16th July 2019

Jitesh Malik

3

Market Trends & Drivers

Asia Pacific dominates the global

payments revenue with ~50%

share of the global market or

~$1.6T (Y2022)

Global payments revenues grew

12% in 2017, the highest rate in 5

years (Y2022 – $2.9T)

Open Banking as compliance,

PSD2, Real Time Payments,

ISO20022, GDPR, Challenging

regulations & Risk environment

Global digital commerce - $3

trillion (2017) & expected to

double by 2022

Emerging Asia expected to

maintain rapid growth in

non-cash transaction at 29%

from 2018-21

Emerging Asia expected to have

$566 Billion payments revenue

(Y2025 - 28% of total global

payment revenues)

Source: Capgemini

Source: McKinsey Global Payments Map, 2018

Emerging technology mega trends

Big Data

Digital and Open Banking

APIs AI/Machine

Learning

CryptoCloud/SaaS

4

IOT Biometrics

5

Artificial Intelligence in Payments

Leading Asian Bank used Machine

Learning to analyse Key Datasets – Define

15,000 microsegment –

Build – Next-Product-to-Buy-Model &

Tripled the likelihood of customer buying

Improve Financial Health

Example Citi Ventures-

Compare Consumer interests on Credit

Cards and offer better product

Improving Customer

Experience

Right Product Right Time

Machine Learning can enable quick

and painless P2P payments through

integrations.

Example – PayPal is integrating its ‘bot’

with Facebook Messenger, Siri,

WhatsApp, others

Convenience for Customers

Better Lifestyle Management

Restricted Purchase of Alcohol Items

Physical & Mental Well Being

6

Artificial Intelligence in Payments

AI based Auto Repair and Automated

Exception Management

Improve STP Rates to above 98%

NLP – Setup Recurring Payments‘Bot’ is able to inform when new

products are available and when card is set to expire

Improving Efficiency

Increased STP

Leading UK’s Co-operative Bank has

used robotic process automation (RPA)

& machine learning to cut wire-

payments processing from 10 minutes

to just 10 seconds.

Leading Bank in Asia – 60% Time

Savings, 500 RPA

Payment Processing

Digital Engagement

Machine Learning - Behavior

Analysis, Pattern Recognition, Multi Factor Authentication, Biometrics

Payment Authorization

What is Temenos Payment Hub?

B

C…delivered as a service; supports Open APIs1

2 …available on cloud or on-premise; platform agnostic

3

4

5

…integrated and highly configurable Alert & Messaging Platform & Dashboards…reliability at peak working hours & peak volumes, 24*7*365 availability using Non-Stop processing on real-time

basis

…higher STP using AI based data enrichment and repair, rule-based payment orchestration

6

7

…ability to extend, customize & define workflows & products

…360 degree transaction view, real-time liquidity management, security & access controls , audit trail with complete transaction transitions.

&

Key

Attributes

7

A Single

Platform,

Channel

Agnostic,

All type of

Payments.

•Credit Transfer

•Direct Debit

•Book Transfer

•Cheque

•Standing Order

•Instant Payments

•Others

•SWIFT

•ISO 20022

•RTGS

•ACH

•Others

•Branch

•Internet Banking

•Mobile Banking

•ATM, POS

•H2H & ERP

•E-commerce

•Open Banking

•Others

•Corporate

•Retail

•FI’s

•Others

•Retail

•Trade

•Loans

•WMS

•Deposits

•Others

•Outgoing

•Incoming

•Redirect

•On-us; Off-us

•Batch Files

•Single

•Return Payments

•Others

Payment

Types

Payment

SchemesChannels Customers

Intra Bank

Departments

Transaction

Types

Acceptance &

Mapping

Payment

Preparation

Payment

Processing

Filtering &

Screening

Fee, FX &

Posting

Message &

File

Generation

Payment

Finalization

B &

Universal

Workflow;

End to End

Processing

Acceptance &

Mapping

Payment

Preparation

Payment

Processing

Filtering &

Screening

Fee, FX &

Posting

Message &

File

Generation

Payment

Finalization

Temenos Payments Hub

PAYMENT HUB (EXECUTION)

Route to

Payment Execution

AUTO

REPAIR

CHANNEL

Internet &

Mobile Banking

Other Channels RESTful

APIs

Internal &

External

Applications

API

CORPORATE

Banking

Receive

Instruction

SWIFT

Correspondent

network

CLEARING

systems

PAYMENT ORDER (INITIATION)

CO

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Co

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na

lytic

s

8

Source: IBS – ‘Annual Sales League Table 2017’. IBS Intelligence, 2019

9

Temenos Payment Hub Leadership

Winner – Payments

Innovation of the Year

Number 1 – Leader in

Payment Systems (IBS

Intelligence)

Temenos Payment Hub

A Leader in Kapronasia -

Payment Hub Evaluation

10

Temenos Payments Sample References

Overall 400+ installed payments clients in more than 140 countries

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Thank You

temenos.com