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Why 64 Percent Of FIs Want Smart Agents

The jury is in. Almost every modern FI has at least one artificial intelligence (AI) or machine learning (ML) system in place, and 61.0 percent intend to invest in more.

The only question is: What learning systems will they choose to adopt?

Among the many AI and ML systems available on the market, there is one that is particularly versatile type of AI, having been engineered specifically for enhancing financial and payments operations: smart agents.

Smart agent can adopt to complex ecosystems and can be assigned to perform particular functions. One smart agent may be assigned to analyze the actions of any particular consumer, POS terminal or ATM, and use that analysis to learn how to best perform whatever action it was assigned to do.

This ability to analyze and learn from experience makes smart agents highly effective tools in the financial services space. It is no wonder that 64.0 percent of all FIs say they would be interested in using them.

So, in what areas are smart agents most effective and how do these businesses hope to leverage the tech?

In the latest edition of the AI Innovation Playbook, PYMNTS teamed up with Brighterion to survey more than 200 American FI decision-makers to gauge what FIs stand to gain from incorporating smart agent technology into their everyday operations.

According to our research, FIs that are interested in smart agents want to deploy them in almost every business area imaginable — and different types and sizes of FI want to use them to different degrees, and in different ways.

For instance, while 72.1 percent of commercial banks are interested in using smart agents to enhance their banking services, just 53.0 percent of credit unions are interested in doing the same. Meanwhile, 100 percent of FIs with more than $100 billion in assets expressed interest in adopting smart agents to support credit underwriting, and 89.5 percent of those with assets valued between $25 billion and $100 billion are interested in them to help in the fight against internal fraud.

Despite smart agents’ many use cases, there is still a minority (36.0 percent) of FIs that are either only slightly or not at all interested in smart agents. Their reasons often have less to do with the technology itself, and more to do with their own limitations. For example, 50.0 of these FIs said their organization lacks the skill sets needed to handle them—indicating a staffing issue more than a technological one.

To understand what smart agents, and AI systems can offer what other learning systems can’t, download the playbook.

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Latest Insights: 

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out our April 2019 Unattended Retail Report. 

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