AI has been present in the credit card industry for many years. Artificial intelligence and machine learning have been working behind the scenes to make our credit cards more secure and user friendly. We are now seeing even more progress with this integration of AI within the credit card industry and it is changing the way we interact with money in general.
As more businesses move online and more consumerism takes place via our virtual shopping habits, credit cards are becoming one of the major ways to pay. Cash is becoming a thing of the past despite it being considered a reliable way to pay for goods and services.
With that in mind, let’s take a look at some of the ways that AI is enhancing both the business and the consumer experience.
Credit Card Security
With so many online transactions taking place around the world day and night, it is practically impossible to have this monitored by humans alone. The traditional rules-based fraud detection systems are outdated and no longer effective.
These real-time payments require real-time fraud detection. Machine learning and AI software will be able to score credit card transactions to intelligently monitor and analyse these payments. According to leading banking analytics company SAS “The AI technology can look for unexpected commonalities between all transactions, both fraudulent and non-fraudulent.”
In doing so, the AI systems are designed to send alerts to individuals in unusual activity is detected. The algorithms will gradually learn and adapt, over time, to discover what is normal behaviour for an individual and therefore spot what is not.
The aim is to provide a multi-layered anti-fraud system that dramatically reduces the chance of fraud. In the future this should help to stem the arguments between industries as it will be easier to see where the liability lays. In turn it will make it easier for the consumer to be reimbursed.
Customer Service Chat Bots
Many customers want to be connected with their credit card, they want easy accessibility to their information. Access to customer services gives them reassurance that they are in control, while also providing them with answers to any queries they may have.
AI technologies offer text analysis, machine learning and automation that create a more intelligent and evolved chatbot. The AI technology allows the chatbot to analyse the conversations and provide appropriate and meaningful responses.
With this advanced system a chatbot can handle more advanced tasks such as updating a customer’s personal information, account settlements and even credit card application services.
Ultimately this means that the customer services team are freed up from the basic tasks and call centres are less stressed. The benefit to the customer is that the call waiting times are dramatically reduced and queries are handled far more quickly.
Effective Marketing Campaigns
The use of AI collating big data analytics allows companies to understand what the consumers want. How to appeal to that customer and encourage them to use the credit card they provide.
The way it does this is to match the consumer to the offer rather than spamming all customers with general marketing campaigns. This will cut down the marketing expenses for the company and provide the user with a more tailored experience.
Gifts and offers that are likely to appeal to a particular consumer will be made more readily available. The offers and rewards will become more relevant to the individual customer based on the analytics of the data gathered by AI systems.
AI Is Here To Stay And It Is Constantly Evolving
AI software is evolving and helping card issuers to learn more about individual cardholders and their spending habits.
It is becoming more interactive, adapting and constantly learning ways to improve security, consumer experience and money management.