Post on 13-Apr-2022
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
RE B
AN
KIN
G
Ris
k &
Co
mp
lia
nc
eA
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
Pa
ym
en
ts H
ub
an
d
Ord
er
Ma
na
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Au
to
Re
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ir
Thank You
temenos.com