The findings reveal more than eight in 10 respondents plan to deploy generative AI in support of their payments businesses in the next two years, using it — among other things — to address the fraud and customer experience hurdles facing the industry.
NEW YORK, May 9, 2024 /PRNewswire-PRWeb/ -- Arizent, the parent company of American Banker, an information resource serving senior executives in financial services, publishes the Emerging Payments Technology 2024 report. Sponsored by i2c, the research reveals that more than eight in 10 respondents plan to deploy generative AI in support of their payments businesses in the next two years.
When it comes to using generative AI in payments operations, fraud and risk management and customer service are at the top of the agenda. Functions like compliance, loan processing and underwriting are also on the list of current and future applications.
The research also indicates that the mobile channel has become so important to the payments business that it is driving interest in new mobile wallets and affecting how new payment products are designed. More than half of financial institutions are designing new products with a mobile-first approach, making it a best practice.
Regardless of channel, organizations are looking for speed in their payments services. Driving this need for speed is customer experience (CX): More than nine in 10 (95%) respondents say faster payments are important for delivering on their desired customer experiences. Beyond improving CX, institutions are looking to faster payments technology to drive acquisition, retention and stay competitive.
Even with a clear desire for faster payments, respondents express concerns that more speed results in more fraud, which is perceived as the biggest obstacle to growth. About nine in 10 (91%) respondents are concerned that faster payments solutions make it easier for criminals to commit fraud.
"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," says Janet King, Vice President of Arizent Research. "The ease of making faster payments, especially from mobile devices, raises industry concern about the security of these transactions."
Additionally, more than nine in 10 (93%) respondents predict that their payments businesses will grow in 2024, with two-thirds (65%) expecting moderate to significant growth. As a result, three quarters expect to increase their investments in technology in the coming year.
"Now is the time to learn how generative AI-based tools can offer an advantage when it comes to fighting fraud," King continues. "In addition, AI offers promising pathways to better customer service and marketing that banks and credit unions shouldn't ignore."
To read more about the intersection of mobile payments, fraud mitigation, and AI's impact on the customer journey, download the full report here: https://www.americanbanker.com/research-report/introducing-the-third-musketeer-of-payments-tech-generative-ai
Research Methodology
This research was conducted online by American Banker (a product of parent company Arizent) during January and February 2024 among 126 banking industry business leaders about their payments businesses. The objective of the research is to understand professionals' 2024 outlook on the payments business, approaches toward new payments technologies and concerns about fraud.
For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
[email protected]
M 207-807-4806
About American Banker
American Banker empowers banking professionals with unique analysis and insight into the ideas transforming their business and industry. Across its journalism, events, research and benchmarking, it helps drive the way forward through the complexity of business innovation, retail and commercial disruption, technology, regulation and reform. With a banking community 850M strong, American Banker's content connects leaders online, in person and in print every day.
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.
About i2c Inc.
i2c is a global provider of highly configurable banking and payment solutions. Using proprietary building block technology, clients can easily, quickly and cost-effectively create, launch and manage a comprehensive set of solutions for banking, credit, debit, and prepaid programs. i2c delivers unparalleled flexibility, agility, security, and reliability from a global, unified banking and payments platform. Founded in 2001 and headquartered in Silicon Valley, its next-generation technology supports millions of users in more than 200 countries/territories and across all time zones. http://www.i2cinc.com
Media Contact
Aaron Boscanin, Arizent, 212-803-8500, [email protected], www.Arizent.com
SOURCE Arizent
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