Banks and credit-card companies are increasingly harnessing the power of AI to collect critical business information and fuel the efficiency of credit card transactions.
FREMONT, CA: Digital disruption is revamping industries and changing the ways they function. Every industry is assessing options and adopting ways to create value in the technology-driven world. The banking sector is witnessing groundbreaking changes and is harnessing cognitive technology with Artificial Intelligence (AI) brings to take advantage of digitization and meet the competition. One way by which AI impacts the banking sector is through credit cards. AI is making credit cards safer and more user-friendly and ultimately shaping the way people interact with money at large. Know more here.
Like how social media marketers use ad retargeting to deliver relevant advertisements to users, credit card companies are crafting reward programs that are based on the customers' past activity and buying behavior. AI enables hyper-personalization, facilitating the customers to get more relevant rewards and bonuses. AI algorithms can also analyze the past spending habits of the customers and use it for future recommendations of offers as well.
Credit card fraud is a burning issue today. While legacy technologies were not adequate to stop the occurrence of such events, AI allows credit card companies to spot dubious activities almost instantly. This capability is achieved with a considerable reduction in false positives, thereby resulting in improved customer experience. Data analytics armed with AI capability minimizes false positives and obtains accurate data in case of a transaction.
AI is contributing to the credit card industry by using algorithms to recommend ways to redeem loyalty points or to target customers. Financial institutions are relying on AI for several operations in the credit card industry. AI is also being used to calculate the creditworthiness of customers in the emerging markets. This opens up areas for quality loans with an increased likelihood of repayment.
AI will arm the banks to make the best decision in terms of allocating the line of credits and loans to the customers and streamline the internal processing of the financial operations.
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