Digital Payments – With the increasing popularity of digital wallet providers, The world’s best companies are running behind magic word “PAY”. Incorporating this feature into any payment process can greatly enhance its efficiency and ease. Payment serves as the foundation for the entire banking experience, but it is currently being challenged. Almost all of them are coming out of payment/financial services domain. Rushing to launch a product which ends with “Pay”.
Digital payments are on the rise, through which people can conveniently make payments for their daily essentials, leisure activities, and even education using only an email address, mobile number, or a few taps on a mobile app.
Digital Transformation Of Money – Digital Payments
Digital transformation for money Money is becoming more of a non-tangible or data byte than a tangible item. Almost all of them have cutting-edge technologies like machine learning, artificial intelligence, artificial neural networks, and deep learning. Innovative products with a combination of AI technologies and fintech are flooding the market already.
The frequent, rapid advancements in technology have resulted in significant improvements in digital customer engagement. This includes the implementation of advanced analytical tools to assess customer sentiment and service utilization, as well as the increasing prevalence of voice assistant services on smartphones and the progress made in biometric authentication. These developments have all contributed to a more sophisticated and effective means of engaging with customers in the digital realm.
This is great for us, but less great for the smartphone companies, particularly the big brands, who want to charge a premium for flagship handsets. Understanding customers better and letting them choose services for their convenience in which they want to communicate with the bank, login, or navigate an app or website Providing a truly frictionless experience that could stand up to Uber or any other popular app, AI is determined to play a bigger role in payments science.
Digital Payments · Better Than Cash Alliance
This creates unnecessary risk from a privacy and security perspective. The naive perception is that somehow [chatbots] will replace full-service banking in the coming years, but on what are chatbots standing-service banking in coming years, but on what are chatbots standing? AI should be used to provide more safe, private, cheap, and easy methods of payment.
Because of the rapid pace at which fintech, banking services, financial products, and payments in a digital environment are developed and commercialized, companies may be pushed to start collecting and processing personal information before their privacy and security frameworks are fully developed.
The application of neural networks in risk scoring is currently highly valued due to their effectiveness in detecting and responding to potential threats. By leveraging the power of AI, businesses can enhance their risk management processes, ensuring the security and reliability of payment transactions.
Data Value Chain of Digital Payments
As the world is moving towards digital wallet providers every day, which makes it easy for consumers to pay quickly either for bread, entertainment, or even education purposes with just an email address, mobile number, or just a few clicks on a mobile app, etc. Adding this facility to any checkout process or shopping experience always makes it simple and effective. Payments represent the beachhead for the entire banking relationship, and this beachhead is under attack.
This enables consumers to pay through plastic cards, banks, and local payment methods. Unfortunately for banks, many of these payments are transacted through mobile apps controlled by online payment specialists and digital merchants. We are very confident that software systems can do adoption jobs dynamically. As mobile payment systems head toward primetime, we could be witnessing the beginning of a profound shift in payment culture.
It is crucial for banks to include a robust payment plan within their overall strategy for digital banking. In order to stay competitive in the rapidly developing digital landscape, banks need to satisfy the demands of tech-savvy individuals by providing a broad range of resources to assist customers in making informed choices about various financial offerings.
The Needed Approach
To adopt a cautious strategy, it would be wise to start by documenting customers’ frequently performed transactions using the new mobile platform. Gradually, the goal should be to transition to a fully digitalized interaction.
While artificial intelligence (AI) technologies have been prevalent in the payments industry for some time, we may not be aware of their presence unless explicitly informed and provided with illustrative examples. Among these technologies, neural networks used for dynamic risk scoring have gained significant attention and relevance in the current landscape.
By initially capturing common customer transactions through the mobile medium, businesses can establish a foundation for digitization. This step allows for the integration of AI technologies, such as neural networks, which play a crucial role in assessing risk dynamically. Neural networks have become an increasingly prominent topic, as they offer sophisticated capabilities for evaluating and scoring risk levels associated with financial transactions.
the adoption of a progressive approach, starting with mobile-based transaction documentation and gradually moving towards complete digitalization, coupled with the utilization of advanced AI technologies like neural networks, empowers businesses to stay at the forefront of secure and efficient payment systems.
Books + Other readings Referred
- Open Internet, research papers & Conferences.
- Hands on personal research work @AILabPage
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Conclusion: We are faced with a significant question: What will happen when Central Banking comes to an end? The answer lies in the emergence of decentralized entities, flexible systems, and adaptable software. As the traditional centralized banking system slowly diminishes, these decentralized structures, fueled by innovative technology, are ready to step in. These transformative entities have the power to grow effortlessly and leverage flexible software, giving us a glimpse into the future of financial systems. Their capacity to adapt and evolve holds the potential to reshape the financial world, ushering in a new era in banking and monetary practices.
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