Buckzy Payments Inc. recently disclosed that artificial intelligence (AI) is playing a vital role in the payments industry, as it can help improve the security and efficiency of cross-border transactions. There was a time when AI was considered a futuristic technology that was only limited to the world of comic books and films. However, it has overcome its science fiction reputation and is now being used practically in an increasing number of business processes, including those in the finance industry.
AI and the payments industry
Cross-border payments are one such area where AI is helping to strengthen security, speed up transactions, and to improve the quality of services for clients. The chief executive and president of Buckzy Payments Inc., Abdul Naushad had talked about the capabilities of artificial intelligence in the payments space back in January.
He had explained that AI could be quite useful in instant calculations of credit ratings for customers and could also eliminate human error. However, AI technology has evolved since then, which means that payment companies are now exploring how it can help them solve other problems as well.
IBM recently conducted research showing that about 35% of global businesses are using AI, which is a four-point increase from last year. Nvidia also conducted a study showing that 37% of financial service companies intend to use artificial intelligence for gaining a competitive advantage.
Naushad asserted that fintech that does not start leveraging AI in their operating strategy will be at a disadvantage and could be left behind. The CEO said that already a lot of fintech were using AI for a number of functions, such as using AI chatbots for offering customer service to their clients.
However, he said that since customer expectations were evolving quickly, fintech would have to use AI for smart speaker technology that allows users to complete verbal transactions
As far as the cross-border payments space is concerned, Naushad said that AI is capable of predicting FX rates accurately and this makes it easier to use in transactions. It allows transaction processing to be completed in real-time and costs also stay transparent.
He also said that the technology also comes in handy in improving the security of transactions. Naushad asserted that global payments are growing in demand and this increases the risk of information or asset theft. He said that AI is capable of identifying any suspicious activity or patterns of irregular behavior in a payments network, thereby allowing it to detect fraudulent activity quickly.
Thus, financial providers can make use of artificial intelligence for implementing measures that can neutralize the risk of fraud and protect the funds as well as the data of their clients. From a security perspective, AI can also be useful in Anti-Money Laundering (AML) procedures. Transactions can be verified automatically by financial providers, which can cut down processing times and eliminate the possibility of human error because there is no manual verification needed.
Naushad said that downplaying the significance of artificial intelligence would not bode well for financial services.