In simple language, Artificial Intelligence(AI) is a device that performs various tasks successfully just like humans. AI can be defined as a machine that can perform various operation to solve a specific problem for achieving a goal.
Virtual commerce has started to extend beyond the laptop or even past the mobile phone. As the Internet of things (IOT) looks to link consumers various levels – from gadgets to clothing and home equipment- the capacity to pay for goods everywhere and at any time is becoming real. Artificial intelligence will is likely to take this even further, due to the intelligent technology having the potential to streamline bills at every degree.
Artificial Intelligence in Debit Cards
A Fintech start-up called Douugh built an AI engine to help users to achieve financial health. Choice Financial is planning to integrate a new digital bank account and debit cards with Artificial Intelligence. The two companies agreed on a partnership where they will soon, launch a debit card under Douugh’s brand tag, and an AI virtual-assistant called Sophie. With the help of Choice, Financial Douugh have been able to expand their business, with Douughraising around $2.5 million till now.
Launched in August 2016, Douugh uses Artificial Intelligence to help its users in making better financial decisions. Andy Tylor, the CEO of Douugh said that “We’re trying to build a smart bank account” by improving “the ability to tack on deposits and issue a debit card is crucial to that.”
The new product of Douugh, i.e. Sophie will be “running diagnostics” to perform various tasks like paying bills, making payments and helping users to track and manage their savings and spending.
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The integration of AI in banking chatbots is also going to be a new trend in the market soon. Chatbots integrated with AI will be helping users to receive faster responses to solve their issues and queries. The Bank of America has launched an AI-based chatbot Erica, with whom users can easily communicate through voice commands or text messages for managing their financial services.
Nearly 20 years ago, e-commerce websites were launched, and they completely changed the process of purchasing or selling goods online. Now people can purchase or sell anything they want, and at any time, and from anywhere. This resulted in the failure of traditional fraud-detection systems, and they became outdated and obsolete with time. Now payments have turned real-time, so we need real-time fraud detection techniques. Since transactions are now done online, the management of these transactions to eliminate fraud and errors by humans alone is becoming nearly impossible. According to the latest reports of global digital payments, the volume of transactions will reach a milestone of approximately 726 billion by the end of 2020. Banks are using Machine learning and Artificial Intelligence techniques to easily monitor all the data of transactions in real-time by eliminating the chances of fraud from transactions. Moreover, AI can help users to spot illegal or suspicious activities during transactions.
Reduced False Declines
At instances, the layered protection efforts taken to reject suspicious activity can cause inconvenience to innocent customers at some stages in the checkout system. Via use of AI pattern identity skills and device studying, MasterCard is planning to facilitate “an actual-time authorization… that applies thousands of facts factors and complex modeling techniques” to push legitimate transactions through. This will provide a much more enjoyable shopping experience for buyers.
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So how is artificial intelligence changing cellular payments? Our global environment is becoming more and more complex, and the call for clean and hassle-free purchases of products and services will continue to accelerate. As greater technology is brought with each Operation System update, international giants like Apple and Samsung, are gaining purchaser reliance on device capabilities that leverage artificial intelligence and machine learning. As a result, customers will increasingly expect artificial intelligence to be part of the payment process.
Banking industries are realizing the importance of using Artificial Intelligence into their branches to enhance customer services as well as their business. In order to make customer interactions more seamless, or to help users while navigating, finance industries are adopting chatbots that are integrated with AI. Capital One has already deployed a chatbot Eno in the market. Their chatbot helps their users to perform basic activities like checking account balance or transferring funds.
On the other hand, another payment technology provider Ingenico Group has tied hands with IBM to develop a messaging chatbot, which will be integrated with Artificial Intelligence. This chatbot will be helping sellers of various industries like retailing, hotel, hospitality, and restaurants; to process transactions with customers in a more seamless and secure way. With the help of Machine Learning; the chatbot will be observing the activities of humans to study their interests, as well as enabling them to make payments through the app’s API. The current status of AI-enabled chatbots shows that with the help of AI, chatbots are able to interact with users in a personal manner to provide them enhanced recommendations.
Moreover, AI is also allowing the lenders to have a look into the user’s creditworthiness to help them score credit more accurately. In the United States; lenders use the FICO score like a traditional method to know about the credit score of an individual. The FICO score has its flaws; leading to the possibility of making someone’s credit score bad who is actually well worthy of obtaining a loan. With Machine Learning algorithms, lenders can analyze user’s data to make more personalized profiles with more accurate predictions; which will then be used to approve the loan of those who are eligible.
To improve the services of their users; financial enterprises are taking things a step further by using Artificial Intelligence for analyzing their customer’s behavior; their daily spending, and recommending various ways for them to cut their spending.
Increased Automation for Better Insights
There is no doubt that the impact of Artificial Intelligence on the payment industry is quite promising, and from changing the way how people used to invest their money to make the borrowing process fully automated, AI has made a huge development in the payment field. One of the major advantages of using AI in the payment; landscape is that it helps companies to improve the efficiency of their operational services. This is achieved through reduced payment processing time and providing user insights with improved automation.
So far, AI has been found to help groups restructure their working models and procedures. For example, it is able to assist agencies in processing massive volumes of data to generate financial reviews; satisfy regulatory and check against compliance requirements. This extra efficiency and accuracy of information help enterprises to spend more resources on corporate strategy.
More Informed Decisions
AI has the capacity to help guide making investment decisions through quantitative techniques. These quantitative techniques are used for analyzing big data; with it being adopted by an increasing number of teams from key marketplace players in recent years. The information collected can be leveraged by investors to make extra informed choices. As the quality of this method to obtain information improves, this will, of course, increase the number; of adopters even further in the coming years.
All being said, there is still a long way to go before we reach a point where all our common; activities involve an influence. Fintech, however, is likely to be one of the first industries that do become heavily influenced by AI. Furthermore, the many crossovers between AI and fintech are creating a great environment for disruptive start-ups to take advantage.
Many industries have already started to extract the potential that Artificial Intelligence holds for them. It seems inevitable that the payment industry will be heavily affected by AI in a variety of positive ways. Since the future holds even more advancement in technology, the full potential of AI is yet to be revealed. This is just the beginning of the positive changes AI can bring to various industries, especially for the payments landscape.
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