Temenos and NVIDIA Launch On-Premises AI Banking Platform

Banking software provider Temenos, which powers core systems for over 3,000 financial institutions, has unveiled its latest on-premises generative AI solution through a partnership with NVIDIA. 

By deploying large language models (LLMs) within bank infrastructure, financial institutions can maintain complete control over sensitive data.

Implementation Framework

Speaking to FinTech Magazine earlier this year, Malcolm deMayo, Vice President of Global Financial Services at NVIDIA, highlighted how data unification presents a critical first step. 

“Financial institutions are organised around products, which has led to the creation of data silos,” Malcolm explained. “Getting data into a place where you can make a high-quality data set is important for model accuracy.”

NVIDIA's NIM microservices framework underpins deployment and management of AI models, working alongside GPU hardware and AI Enterprise software. 

Banks can now process unstructured data, including customer communications and transaction records, without relying on external cloud providers. 

Model accuracy, Malcolm noted, “is influenced by the size of the model. The larger the model in parameters, the better its reasoning skills”.

Data Control and Compliance

Growing concerns around data sovereignty have shaped how financial institutions approach generative AI implementation. 

Under deployment architecture from NVIDIA, banks can process customer data within their infrastructure while leveraging pre-trained models for credit scoring and anti-money laundering (AML) detection.

Leading firms spent 2023 recalibrating their control frameworks. “Last year was about experimentation, having conversations with regulators around how varying inputs impact outputs, and explaining how models operate responsibly,” Malcolm noted.

Built-in explainable AI features provide visibility into decision-making processes, meeting regulatory requirements for transparency in automated systems. 

“AI is reshaping financial services, letting banks reimagine customer interactions and optimise secure, scalable operations,” Malcolm. says of the Temenos partnership.

Market Implementation

Integration focuses on pattern recognition and natural language processing capabilities. Primary applications include automated credit decisioning, where models process both structured and unstructured data to assess creditworthiness, alongside AML monitoring for identifying suspicious transaction patterns.

“This collaboration exemplifies the strength of combining Temenos' banking expertise with NVIDIA's industry-leading AI infrastructure, giving banks powerful tools to serve customers in real-time with precision and control,” says Barb Morgan, Chief Product and Technology Officer at Temenos.

Industry Transformation

NVIDIA's partner network enables distribution across global banking institutions, establishing standardised approaches while maintaining individual bank control. 

"Customising open-source models to your organisation's needs is achieved using various techniques, such as supervised fine-tuning and Retrieval Augmented Generation," Malcolm explained.

Malcolm sees 2024 as pivotal: “This will be the year when we start to see models get into production, as AI assistance, computer code generators, process automators and co-pilots, all requiring a human in the loop to make final decisions.”

For financial institutions implementing these systems, model validation remains crucial. Banks must prove models will generate accurate, fair and responsible insights while maintaining efficiency in deployment and operation across multiple environments.

The partnership marks a significant step in banking technology evolution, combining Temenos' sector expertise with NVIDIA's computing infrastructure to address growing demands for secure, on-premises AI solutions in financial services.

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