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Payments Industry Recognizes AI Value

Report by American Banker found AI is being used to streamline compliance, loan processing and underwriting

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  • Written by  Banking Exchange staff
 
 
Payments Industry Recognizes AI Value

Financial institutions are leaning into generative AI for support in payment businesses.

A report by American Banker found 80% of financial institutions are using or intend to implement generative AI to support their payments businesses within the next two years.

The report also examined professionals’ current perspectives on the payments business, including new technologies and fraudulent concerns.

Generative AI can be helpful for institutions seeking to streamline processes such as compliance, loan processing and underwriting.

“AI offers promising pathways to better customer service and marketing that banks and credit unions shouldn't ignore,”  Janet King, vice president of Arizent Research, said.

The report found more than 95% of respondents stated that faster payments are important for delivering on their desired customer experiences and remaining competitive.

Fraudulent activity remains the largest barrier to the digital payments industry’s growth and report respondents voiced a concern to speedy solutions allowing for increased criminal activity.

"Financial institutions need to carefully monitor and balance the need for fraud and risk mitigation with advances in customer experience, as new technologies like faster, mobile payments solutions become new threat vectors,"  King added.

The report also highlighted the importance of the mobile channel within the payments industry, driving interest in digital wallets when it comes to product development.

More than half of financial institutions surveyed are therefore adopting a “mobile-first”  approach, positioning it as best practice.

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