Artificial intelligence (AI) is one of the most commonly referenced terms by financial institutions (FIs) and payments firms when describing their vision for the future of financial services.
AI can be applied in almost every area of financial services, but the combination of its potential and complexity has made AI a buzzword, and led to its inclusion in many descriptions of new software, solutions, and systems.
This report from Business Insider Intelligence , Business Insider’s premium research service, cuts through the hype to offer an overview of different types of AI, and where they have potential applications within banking and payments. It also emphasizes which applications are most mature, provides recommendations of how FIs should approach using the technology, and offers examples of where FIs and payments firms are already leveraging AI. The report draws on executive interviews Business Insider Intelligence conducted with leading financial services providers, such as Bank of America, Capital One, and Mastercard, as well as top AI vendors like Feedzai, Expert System, and Kasisto.
Here are some of the key takeaways:
- AI, or technologies that simulate human intelligence, is a trending topic in banking and payments circles. It comes in many different forms, and is lauded by many CEOs, CTOs, and strategy teams as their saving grace in a rapidly changing financial ecosystem.
- Banks are using AI on the front end to secure customer identities, mimic bank employees, deepen digital interactions, and engage customers across channels.
- Banks are also using AI on the back end to aid employees, automate processes, and preempt problems.
- In payments, AI is being used in fraud prevention and detection, anti-money laundering (AML), and to grow conversational payments volume.
In full, the report:
- Offers an overview of different types of AI and their applications in payments and banking.
- Highlights which of these applications are most mature.
- Offers examples where FIs and payments firms are already using the technology.
- Provides descriptions of vendors of different AI-based solutions that FIs may want to consider using.
- Gives recommendations of how FIs and payments firms should approach using the technology.