Temenos acquires AI firm Logical Glue
Temenos, the banking software company, announced it has completed the acquisition of Logical Glue, a London-based provider of a patented, explainable AI (XAI) platform with financial clients in the UK and Europe.
The acquisition accelerates Temenos’ AI roadmap by bringing together a patented, proven XAI platform, AI credit scoring models that are immediately available worldwide, and deep AI and machine learning expertise.
The Logical Glue XAI platform will be immediately embedded within the cloud-native, cloud-agnostic Temenos banking platform and will be available with all Temenos software including digital front office, core banking, wealth management, payments and fund administration products.
Max Chuard, CEO at Temenos, says: “This is a highly strategic acquisition for Temenos as it […] brings an impressive team onboard that is immersed in AI and Machine Learning and builds upon the work.”
“We are delighted and excited to be joining the Temenos family at this hugely exciting time,” says Professor Hani Hagras, co-Founder and chief science officer at Logical Glue.
“With our patented, cutting-edge XAI platform and our highly experienced machine learning experts, we are helping financial institutions harness the explosive power of XAI and helping them master AI decision making. We are excited to combine our strengths with Temenos’ expertise, reach and passion. Together, I am sure we will be able to transform the industry,” adds Hagras.
The Logical Glue XAI platform will be immediately integrated with Temenos’ cloud-native, cloud-agnostic banking platform and will be available with all Temenos products giving our customers, the next generation of AI-powered explainable applications. It will provide banks with the next generation of AI-powered applications irrespective of the choice of cloud that banks decide to deploy the platform or on premise.
The XAI platform will be fully integrated with the Temenos Data Lake to give banks a real-time, end-to-end Smart Data Lake, offering higher quality and richness of data through multiple sources.
This means that banks can make faster, more accurate and explainable decisions driven by AI algorithms. All these products can be consumed either through an easy-to-use interface or through APIs and can be delivered on-premise, in the cloud or as a software-as-a-service (SaaS) offering. The provision of explainable AI as part of the Temenos platform is central to the Temenos strategy to deliver both cloud-agnostic as well as on premise products to banks.
Logical Glue’s explainable AI platform addresses one of the key challenges for banks using AI applications, which is that they typically operate as ‘black boxes’ offering little if any discernible insight into how they reach their decisions.
Regulators globally are increasingly mandating that financial institutions should be able to explain to their customers the results of automated decisions that affect them. For example, Europe’s General Data Protection Regulation (GDPR) includes ‘a right to explanation’ for all decisions made by AI algorithmic systems, while the US Equal Credit Opportunity Act compels creditors and lenders to provide specific reasons to borrowers when negative decisions have been taken.
Through this acquisition, Temenos aims to bring innovation to the banking industry by helping banks explain in plain language to their customers and regulators how AI-based decisions are taken.
