By Ashish Sherlekar . May 25, 2023 . Blogs
In today’s rapidly changing business landscape, data has become an invaluable and essential asset. But making sense of this growing volume of data hasn’t been easy for banks and financial institutions. That’s where Artificial Intelligence (AI) plays a huge role in boosting payment accuracy and efficiency. Read on as we unravel the role of AI in revolutionizing the payment industry.
Customer experience continues to be the focal point for both regulatory and industry stakeholders. With the payments horizon continually expanding, traditional and new players must monetize new business models within a dynamic operating environment. But as the emphasis on business stability and customer risk mitigation grows, organizations find themselves struggling to keep up.
In addition, the COVID-19 pandemic caused a sudden and widespread shift toward instant payments around the world. This has resulted in a surge in the volume of transactions, with digital payments transaction value expected to reach $9.46 trillion in 2023. As more and more users use digital modes of payment, the challenges being faced have also grown manifold:
With competition increasing and customer expectations growing, the pressure on organizations to enable better scale and efficiency is intensifying. Gaining insight in real-time from burgeoning volumes of data is the only way to unlock additional value and enable new revenue streams.
Data allows businesses to see the big picture, right from monitoring payment fluidity to identifying transaction issues. It also provides deep insight into individual transactions, allowing for better granularity. Payment data, when converted into insight, can be a powerful tool for businesses to:
In the payment industry, AI offers tremendous capabilities in utilizing growing volumes of data and driving better payment decisions. Deploying AI in digital transactions and as an integral part of innovation strategy can help in improving payment efficiency, reducing costs, and enhancing customer experiences.
AI can also help meet the growing demands of the digital fintech industry. When powered with AI, companies can stay ahead in the ever-growing competitive digital market. Here are 4 ways in which AI can revolutionize the payment industry:
AI offers several capabilities, enabling companies to predict customer behavior. Using advanced AI models, they can better understand customer payment preferences and spending habits. Such insight can allow them to create user-specific marketing campaigns and services, thus improving customer satisfaction and retention.
Fraudulent transactions are a common sight in today’s digital payment landscape. Using AI, banks can minimize the chances of payment fraud, thus preserving customer privacy as well as brand reputation and trust. Rule-based algorithmic techniques can be used to correctly identify anomalies while alerting IT staff to take quick and necessary action.
AI-enabled chatbots are a great way to streamline customer service in the payment industry. Customers who are new to digital payments can engage in conversations with chatbots and find quick answers to simple queries and concerns. Not only can these chatbots minimize the load on human executives, but they can also offer the next level of customer experience via intelligent conversations.
AI can also be used to carve the future of touchless payments. Machine vision-based AI models can enable voice-activated payments for improved customer convenience. Using AI, businesses can also enable biometric payments for stronger security and a more streamlined checkout process.
The payment industry is increasingly playing a crucial role in the global economy. To develop new revenue streams and models, organizations must possess the ability to convert data into insights and insights into sustainable value.
As banks and other financial institutions constantly strive to make business decisions and serve customers better, AI offers several capabilities to remain efficient, competitive, and customer-centric.
Are you looking to leverage AI to streamline payments, align your business with customer preferences, and keep up with payment trends and requirements? Then we can help!
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