Understanding Changing Role Of Payments Powered By AI
Within the next few years, AI will be all around us, embedded in many higher-order pursuits. But what is new is the interconnectedness that we now have in the world. It’s about making AI closer to human thinking by using inputs from all digital sources and verifying that thinking through self-derived algorithmic calculations and application. The computing power is only now able to take that volume and velocity of information and make ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¹Ã…â€œthought derived decisionsÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢ without the computer itself costing the price of a small country’s GDP.
What are humans doing which Machines will do more efficiently & fast?
Humans are capable to call on every aspect of the current market, or any outlying influencing factors including gained experience and use that particular data to make decisions. It need not always be the correct decision, but the gained experience helps the next time.
Check if AI is capable of doing this?
In the past, technology ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¹Ã…â€œreplacedÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢ humans by applying human derived rules to technology in the form of computer code. If the program says perform X under these circumstances, then it performs X if the condition is matched – There had to be a rule. Rules can get quite complex but there are complications of nested rules and hence failed results and hence lack of a decision by the rule.
AI is different – it can make up the rules by cognitive learning through historical evidence and adapt rules based on scenarios. AI can make those rules based on complex decision making with input from multiple dimensions of data and also apply fuzzy logic to arrive at an ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¹Ã…â€œinformed decisionÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢., contrary to decisions by humans, where most of the decision making is based on unidimensional data and by ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¹Ã…â€œexperienceÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢. For instance, card spending and bill payment records (such as when regular payments occur) and matching payments to a consumerÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢s deposit trends (such as automatic payroll deposits) to predict behavior and intuitively manage the timing of those transactions. This will create a more personalized, smarter user experience based on each customerÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢s data.
WhatÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢s more, AI can better target and make intelligent suggestions to consumers open to learning about relevant products or services. Consumers donÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢t mind such offers, so long as theyÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢re timely and relevant. If a customer experiences cash-flow problems because of monthly or quarterly paychecks, for example, the AI engine could recommend setting up a savings account with auto transfers that ensure the consumer pays important bills on time and avoids future late payments.
Proved! AI potentially ingresses into everyday living and banking in a very positive way. But this is just one aspect, if you take into account the Mobile Wallets, Apple Pay (and likes), Payment Bots, WhatsApp Payments etc., AI could potentially start to manage (based on the order and payment process) the supply chain.
How Do Banks Leverage AI?
As consumer-facing industries become more competitive and make digital experiences smarter, financial institutions must embrace artificial intelligence to keep up with the pace of data processing & innovation.
Banks will have the systems that pay the bills, on behalf of the consumer, just-in-time the bills are generated at the billersÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢ end. The AI would have decided on safe payment limits and never bother users for routine bill payments. It will trigger a review with users for abnormal bills and reverse disputed payments. Knowing the consumerÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢s financial habits, the system would have provisioned for upcoming bills, avoiding any defaulter situations. Current systems have huge back-logs on reconciliation since most modern payment mechanisms are ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¹Ã…â€œreal-timeÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢ whereas reconciliation systems are T+0, T+1 etc. which creates a back-log for settlements and is prone to errors when volumes and sources increase. AI could hence be used to build automatic reconciliation solutions across multiple payment modes and gateways. The Payments world in Banking is forever changed, revolutionized by the harmonious intervention of AI.
InfrasoftTechÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚Â¢s AI enabled Payment solutions empowers banks & financial institutions achieve outstanding levels of efficiency, reduce costs, lower risk with online reconciliation and create new opportunities for increased profitability.
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