| |October 201819tems to learn and simulates human behaviour) cannot only help detect a probable fraud but also prevent it before occurring. Computer sys-tems will rely on the power of pat-terns and anomaly detection using AI and ML. The AI/ML-based fraud management systems will be based on rules human brains deploy to detect an anomaly and then con-tinue to learn to become more effi-cient through supervised learning. The application of AI to Digital Pay-ments will build the trust and con-fidence between the service provid-er and the customer leading to the better and faster adoption of the digital payments.Predictive Analytics for Business Insights and Enhanced Customer ExperiencePredictive analytics is - the use of past data, algorithms, to identify the likelihood of future outcomes. AI can power predictive analysis which will not only help in identi-fying the probable future frauds, risk but also help in providing personalized services to the cus-tomers. Aided by the information on customer spending behaviour, systems can predict the needs of the customer and push relevant services to them. This will lead to increased engagement, stickiness, and improved revenues. The busi-ness will also be able to identify the need and potential for newer business services.Virtual Assistant for Personalized Service and StickinessPersonalized customer service is one of the key pillars of financial and payments industry. It is an es-sential ingredient that builds stick-iness. Approximately 5-6 percent of the business revenues are invested in customer service in the payment and banking industry. An AI-based Chabot will not only reduce the spending on the human resource but also eliminate waiting time for being serviced, provide a personal-ized experience and, hence, create amazing customer engagement. Better Operational Efficiencies for Improved ProfitabilityAI can also help payments provid-ers in improving the operational efficiencies by minimizing human involvement and by minimizing human errors by automating pay-ments processing. Large volumes of transactions can be automat-ically processed by applying AI principles,which, otherwise are processed by humans. AI can also automate the routine jobs of pro-cessing compliance reports and statutory reports based on large sets of data.AI will also help eliminate the routine/recurring jobs, that are typically outsourced, by au-tomating them, leading to huge operational cost saving for the payments companies.Enhanced ProcessesThe primary reason for delay in ful-filment of the payments/financial services can be attributed to human intervention and human errors. AI can eliminate both human inter-ventions and human errors, mak-ing the fulfilment faster and more efficient. Processes like eKYC, loan approvals, credit management, investment, wealth management can be automated using AI, lead-ing to significant value-add to the customers experience.In ConclusionEvery payments organization will need to undergo an in-depth anal-ysis of its processes, people, reg-ulatory framework and customer behaviour to understand the appli-cability of AI for optimal benefits. AI may fit in certain areas while it may not in certain other areas. For every applicable area, companies must determine the value AI cre-ates for its customers and business in the long run and the associated cost savings, before making a deci-sion for or against AI.It's clear that AI has come a long way in the last half a decade. It has been adopted across the breadth of industries transforming legacy processes and providing an en-hanced experience to customers. Given, what industry has already achieved by adopting AI, the possi-bilities for the future are endless. AI CAN ALSO HELP PAYMENTS PROVIDERS IN IMPROVING THE OPERATIONAL EFFICIENCIES BY MINIMIZING HUMAN INVOLVEMENT AND BY MINIMIZING HUMAN ERRORS BY AUTOMATING PAYMENTS PROCESSINGTushar Bhatkar
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