Generative AI (GenAI) has entered the public consciousness in a big way, and its impact on the financial services industry is undeniable. While the potential for innovation in payments is immense, the path forward requires careful consideration of GenAI’s strengths and limitations.
- IDC data shows that 31% of institutions say they are already investing significantly in Generative AI in the next 18 months.
- About 54% of financial institutions surveyed say that they will fund any new GenAI spending by more aggressively cutting spending in other areas, according to IDC.
- Fraud investigation and exception handling are among the top GenAI use cases to enhance banking operations.
- GenAI’s limitations in structured data handling mean that traditional machine learning models will still be essential for critical processes like payment routing and compliance.
Read This IDC Spotlight Paper to Discover:
- How AI-powered chatbots are being deployed to support customer service functions, with one global bank reporting a 20% increase in customer interactions.
- How GenAI augments fraud review processes by providing actionable insights, helping human agents process more cases efficiently.
- The ways that GenAI tools assist in navigating complex regulatory frameworks, helping financial institutions maintain compliance with global standards.
- The potential warning signs of relying on GenAI in Payments, which depends on highly structured and accurate data formats to avoid inaccuracies.
- How to ensure that GenAI systems comply with stringent financial regulations and safeguard data privacy are critical concerns.
- The challenges of finding developers with the right AI expertise and how that can slow the deployment of GenAI use cases.
Persistent’s GenAI-Powered Payments Capabilities
Persistent is pioneering the integration of AI and GenAI in the financial services industry, driving efficiency, scale, and innovation in payments for financial institutions worldwide. With proven expertise and a focus on compliance and governance, Persistent unlocks the potential of GenAI in payments while mitigating risks through offerings that include:
- 3G Framework: A unique approach combining GenAI with guardrails and governance for safe and scalable AI adoption in highly regulated environments.
- PaymentsPulse: An ISO 20022-native platform that offers a comprehensive, real-time view of payment transactions across all channels, providing financial institutions with valuable insights and control.
- SASVA™: Our market-leading AI platform that accelerates software and product development and improves productivity through AI-driven automation, seamlessly integrating with enterprise tools.
Why You Should Read This Paper?
This spotlight paper, authored by IDC’s Research Director Aaron Press, investigates the essential but nuanced role that GenAI will play in transforming payments, from enhancing productivity to assisting with complex fraud investigations. As financial institutions continue to explore AI’s potential, the support of experienced partners like Persistent will be critical in implementing effective, efficient, and compliant GenAI use cases.
Download this IDC Spotlight Paper to explore how Persistent drives innovation in payments.
