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Temenos helps US banks and credit unions to respond to surging demand for emergency loans

Source: Temenos

Temenos (SIX: TEMN), the banking software company, announced today that its Temenos Infinity digital omnichannel product is enabling US banks and credit unions to accelerate loan applications to small businesses under the U.S. Small Business Administration (SBA) Paycheck Protection Program ( PPP).

Implemented under the US Coronavirus Aid, Relief, and Economic Security (CARES) Act, the PPP seeks to inject an immediate $349 billion in rescue loans for small businesses impacted by the Covid-19 pandemic. Banks had to respond to the new demands from the government in a timeline that was less than a week. As reported in the press, banks ranging in scale from large Tier 1s to regional banks and credit unions are seeing unprecedented demand for loans from businesses and are struggling to process the application volumes.

Temenos is already enabling banks deploy to a digital experience for customers applying for PPP. Temenos was able to deliver a specific PPP digital loan application solution with integrated processing workflows in 4 days. This enables small businesses to apply for funding digitally without human assistance from the bank and it includes built-in quality controls to ensure that mandatory fields get filled in so it does not need to be reworked and delay the loan processing. The digital portal also allows to streamline the application for funds for the banks to route to the SBA E-Tran system for approvals. With Journey Manager, part of Temenos Infinity, Temenos can deliver flexible and agile digital workflows to accelerate customer journeys from loan applications, to account opening and KYC due diligence. Furthermore, Temenos is enhancing its Temenos Infinity product with additional functionality for SMEs by automating decisioning options through its Explainable AI (XAI) platform, while enabling banks to explain in plain language to their customers and regulators how AI-based decisions are taken.

Kelly Dakin, Chief Digital and Customer Experience Officer, Atlantic Union Bank, said: “Our top priority in these unprecedented times is supporting our small business and commercial clients. By working with Temenos’ dedicated and customer-focused team, we were able to build a brand new digital loan portal specifically for the PPP in less than a week. But, most importantly, through this work we continue to support our business clients and their employees, so they can receive funding and support in their time of need.”

Alexa Guenoun, President, Americas and Global Head of Partners, Temenos, said: “We are proud to support financial institutions to in-turn assist small businesses apply for rescue loans and speed up economic relief during this time of disruption. Our teams - Temenos and the banks - are working tirelessly to deliver projects in days that would normally take months. We are delighted we could help Atlantic Union Bank process loan applications and support small businesses and their employees. Temenos’ cloud advanced technology gives banks the flexibility and agility required to serve digitally the rapidly changing customer needs and respond immediately to the new government requirements.”

Christine Barry, Research Director, Wholesale Banking, Aite Group said: “Banks are struggling to come to grips with the implications of Covid-19 not only because they have to ensure seamless continuity of their business and systems operation but because they also have to respond to exceptional demands from governments such as the PPP within impossible timeframes. Temenos Infinity with dynamic digital banking user experience and flexible technology can help banks respond to the immediate customer and regulatory demands as well as anticipate future changes such as further stimulus packages or changes in the application processes.”

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