Fraudsters launching forays against financial institutions (FIs) is a tale as old as, well, financial institutions. For the honest banker, there’s a constant need to upgrade defenses and proactively fend off attacks.
But not everybody has the resources for a complete cybersecurity makeover — or the $100,000 to sweep a successful hack under the rug. Such resource and budget constraints may be the reason why, even as artificial intelligence (AI) and machine learning are enjoying high adoption rates in the financial services field, the majority of FIs still have yet to implement such high-tech solutions.
Some, however, say even small FIs can get a piece of the AI pie, so long as they implement it strategically and selectively.
The November edition of the PYMNTS Digital Banking Tracker™, a Feedzai collaboration, features an interview about how credit unions can attain AI, a scorecard of industry players and the latest headlines surrounding AIs, digital security and new digital banks.
Around the Digital Banking World
FIs, more than anyone, ought to know that money matters — and many of the digital-only challengers splashing onto the encryption scene are banking on lower overhead costs to help fund their visions and, in some cases, to fund their customers.
App-based personal bank Jiko, set to debut in 2018, says its efficient structure allows for providing 0.5 percent cash back on debit card transactions. Meanwhile, mobile bank Zero says bypassing physical locations allows for a 1 to 3 percent cash back on all spending.
But it’s not all about the cash backs. Some players in mobile banking are also trying to woo customers by folding a bit of emotion into their exchanges. Take BBVA, which is launching a remittance app allowing customers to include messages to their family and Clinc’s conversational AI expanding to new markets around the globe.
For a roundup of the latest notable headlines from around the space, check out the Tracker’s News and Trends section.
Wielding artificial intelligence with human intelligence
The AI snowball is growing fast, picking up more and more FIs as it rolls along. More than 25 percent of FIs and service firms already offer AI applications, with at least 10 percent more planning to follow suit in the next few years.
Yet, for budget-conscious digital challengers and many other smaller firms, joining the movement may seem just too costly. But, it doesn’t have to be that way, according to Shazia Manus, chief product and strategy officer for CO-OP Financial Services, who spoke to PYMNTS for the Tracker’s feature story on how smaller players who can’t afford a full tech overhaul can get the most bang for their AI buck.
“For smaller institutions, it’s about finding the right problems we know are worth solving for, and identifying those use cases to build solutions for first,” Manus said.
To read see the full story, along with rankings of more than 200 players in the Digital Banking space, check out the latest edition of the Tracker.
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About the Tracker
The PYMNTS Digital Banking Tracker™ brings you the latest news, research and expert commentary from the FinTech and consumer banking space, along with the rankings of over 200 companies serving or powering the digital banking sector.