TCS unveils BaNCS AI Compass for global financial firms

Tata Consultancy Services has launched an artificial intelligence upgrade for its TCS BaNCS financial services platform, unveiling a new AI core called TCS BaNCS AI Compass.

The new product brings machine learning, deep learning, generative AI and pre-built software agents into a single environment. It sits on top of the existing BaNCS platform, which runs at more than 500 financial institutions worldwide, including several in the UK.

TCS BaNCS AI Compass focuses on operational tasks in banking, securities services and wealth management. It uses a no-code, configurable interface so business and technology teams can build, train, test, and deploy AI agents without bespoke development.

The company says it's pitching the tool at senior technology decision-makers in financial institutions. It places particular emphasis on governance, transparency and the ability to trace AI decisions.

Process automation

The BaNCS platform is widely used by banks, insurers and building societies, including Scottish Widows and M&G Prudential. The new AI layer extends this installed base with pre-built agents that sit inside existing processes.

In retail and commercial banking, the agents can support account opening and credit underwriting. They can also handle tailored query resolution across multiple channels, including digital and assisted-service environments.

In securities services, the AI engine targets back-office and middle-office tasks. It can predict the tax treatment of payouts and distinguish between dividend and interest classifications. It can detect missing data in corporate action events and streamline the ingestion and interpretation of complex documents.

Governance and controls

Financial institutions face regulatory pressure around explainability and control of AI systems. TCS has built explainable AI and audit logging into the Compass product as core design features.

The system records AI interactions and decisions, allowing stakeholders to track data flows and outputs. It incorporates systematic bias testing and traceable workflows. These features aim to give compliance and risk teams greater visibility over automated decisions.

Data lineage and strict process controls apply across the platform. Privacy-by-design principles apply to data handling and model deployment. Users can inspect the logic of AI decisions through the tool's explainability functions, according to the company.

Venkateshwaran Srinivasan, Global Head, Financial Solutions at TCS, said the launch represents a significant step in the firm's use of artificial intelligence across its financial services software portfolio.

"Our vision is to unlock greater value for our customers through AI agents tailor-made for multiple use cases across the transaction life cycle of our solutions. Our primary focus is on making AI integral to TCS BaNCS, enhancing operational efficiency and helping our customers manage risk effectively while prioritising robust governance, transparency and responsible AI practices. We are committed to helping our customers shape the future of intelligent, customer-centric financial services," said Srinivasan.

TCS plans further extensions to its AI agents and use cases within BaNCS as financial institutions expand their adoption of AI in regulated environments.