We live in an age where instant gratification is now the rule, not the exception. With the emergence of artificial intelligence (AI) like Siri and Alexa, we have answers and information at our fingertips instantaneously.
Newer generations thrive on instant responses and the ability to complete tasks with the press of a button. As technology makes even the simplest of tasks easier, we want more. Unsurprisingly, the banking sector has followed this trend by providing its customers with the latest technology for easy access and flexible banking. As financial institutions (FI) revolutionize the industry with the newest technology, cybercriminals are poised to exploit new vulnerabilities due to increased use.
Artificial Intelligence (AI) in the finance sector
The significant increase in contactless payments for most of the western world’s payments presents another unique twist. For the first time financial organizations have real insight into how their customers are spending. Therefore 2022 we see a rise in financial organisations turning towards Artificial Intelligence (AI) algorithms to predict consumer behavior, spending habits and enhancing their experience. Hopefully financial organizations will act responsibly. They should understand their obligations under the European General Data Protection Register (GDPR).
Detect fraud before money leaves the account
Financial Institutions must stop fraudsters before they transact because it prevents financial losses and maintains a trusted client relationship. FIs customarily absorb the cost of losses, but in some cases, banks are not liable. Sometimes, customers bear the loss, which weighs on the relationship of trust between FIs and their clients. By implementing AI, especially products built for banking,
FIs can close the gap in identifying and stopping breaches before they occur. Sifting through millions of cyber events for an average client (and much more for larger institutions) is virtually impossible, even for the most substantial and proficient teams, and AI creates a baseline of transaction patterns and can identify anomalies as a proactive approach.
The Future of AI in Financial Institutions
As we continue to operate businesses with more advanced technology, financial institutions are finding themselves in a war against malicious acts. The future for FI is to utilize this new technology not just to ease daily operations but to provide an elevated level of protection.
With the ever-changing world of security, risk, fraud, and compliance, the financial sector requires FIs to stay current and competitive. Artificial Intelligence is the way to revolutionize the way banks and credit unions provide security to keep their customer’s assets and data safe.
Diversified payment acceptance strategy
Merchants should keep one word in mind – diversification. Having a diversified payment acceptance strategy will ensure that a merchant stays close to consumer payment trends and preferences. Therefore allowing customers to pay for goods and services in a safe and easy manner.