Artificial intelligence (AI) is impacting every aspect of technology and has played a pivotal role in banking and finance over the past few years. Financial institutions are now leveraging AI to make credit card issuance a robust experience for both customers and financial institutions.
A survey jointly conducted by the World Economic Forum and the Cambridge Center for Alternative Finance found that a significant portion of executives expect to implement AI at scale within the next two years, and believe that AI is a major driver of their business. I am aware that there is. Key insights from the survey include:
- Today, 85% of financial services organizations have implemented some form of AI.
- 77% predict that AI will become integral to their operations within the next two years.
- Over the same period, 64% aim to broadly integrate AI into their processes.
- Approximately 52% are already developing AI-powered products and services.
- Half of respondents see AI as a competitive threat as new players enter the market.
Improving customer experience with AI
One of the biggest benefits of incorporating AI into card issuance is the way it streamlines customer service and provides a personalized experience. Through chatbots and virtual assistance, AI transforms credit card management from a customer perspective into more than just a payment location.
One of the latest trends in AI for financial institutions is conversational AI, which takes chatbots and virtual assistants to a new level. From a customer perspective, conversational AI allows customers to ask questions that go beyond the typical “What is my balance?” question. Through conversational AI, customers can gain deeper insights into their spending habits and trends, helping them reach their financial goals. Examples of this would be if you were interested in where your customers spent the most, or even the number of days they spent the most or their last transaction. Customers simply open the app and ask, “What are her last five transactions?” and receive answers and spending insights within seconds.
AI-powered systems provide customers with a deeper understanding of transactions and 24-hour support. Additionally, AI-powered sentiment analysis allows financial institutions to accurately measure customer feedback and sentiment, allowing them to improve service delivery and continuously best meet customer needs. Masu.
AI for card management and fraud detection
At the heart of AI's value proposition for card issuers is the ability to optimize card management and fraud detection. By leveraging AI-driven automation, tasks such as application processing, credit scoring, and transaction monitoring can be streamlined, significantly reducing manual intervention and processing time.
AI is a powerful tool for organizations in the fight against fraud. With advanced algorithms that can analyze large amounts of data in real-time, AI identifies suspicious patterns and potential fraud. Additionally, AI-powered fraud detection systems continually evolve to adapt to new threats and provide proactive protection against the ever-evolving tactics employed by fraudsters.
Complying with regulatory frameworks and protecting sensitive customer data remains a major concern for financial institutions. Deploying AI must seamlessly align with financial institutions’ goals to strengthen their competitiveness and market position in the evolving payments landscape.
Credit judgment and issuance by AI
Credit decisions and analytics are not a new concept and many large institutions have been using them for years, but it's not too late to incorporate this AI capability into your institution's technology stack. One of the most important parts of credit card issuance is ensuring that the customer is a viable candidate and establishing a credit limit based on that customer's history, especially for individuals with little or no credit history. is to set it. Through the use of AI, financial institutions have access to robust tools that capture and analyze an individual's credit data from multiple sources, giving them insight into what they should offer individuals with minimal risk to the institution. will be able to provide it.
Similarly, AI can analyze existing relationships and present offers to customers that drive profitability and cross-selling to grow the institution.
Introducing AI for the future
Time is of the essence for financial institutions to incorporate AI into their technology stacks. Customers are driven by instant gratification and access, and without AI, this is difficult to provide and financial institutions can lose customers to outdated systems and practices.
Babin Turakia Co-founder and CEO of zeta.