A new paper from Finextra produced in association with Pelican presents the findings of a recent survey into the adoption of artificial intelligence (AI) in payments.
In order to respond to the shifting business, financial and regulatory landscape, financial institutions need to have the highest levels of efficiency across key activities such as payments processing, customer onboarding, product innovation and time to market, as well as sanctions screening, anti-money laundering (AML) and fraud detection.
But what can institutions do if they have implemented the full extent of the automation possible using traditional systems? Are there alternatives to simply throwing more people at the unautomated aspects in the hope of driving further efficiency that way?
The new survey finds that although it’s early days, AI could play an increasingly important role. It shows that though most AI implementation in payments so far has been limited to early adopter tier-one financial institutions, and mostly in the area of AML sanctions screening, the greatest opportunities for addressing operational and business pain points lie in product innovation and time to market, and these areas along with customer retention and reconciliation/repairs are actively being evaluated for new AI deployments.
Key findings of the survey include:
- Improving time to market is a bigger challenge than regulatory compliance for most organisations, and this is the area of the payments business with the highest inefficiency.
- For many respondents there is still significant inefficiency in payments processing, despite this being an area in which significant investment has been made in recent years.
- Routing and investigations are the parts of the payments lifecycle most contributing to this inefficiency. Inhouse development and vendor solutions are being implemented at just over half of organisations to address this. But the areas in which most organisations are currently looking to make new technology investment are product innovation, time to market and customer retention.
- 45% agree or strongly agree that there is strong potential for AI to address remaining inefficiencies in their payments business and operations compared to just 10% who disagreed or strongly disagreed
To find out more about the research findings please complete the short form below to download the paper.
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