Pay – The world’s best companies are running behind magic word “PAY”. Almost all of them are coming out of payment/financial services domain. Rushing to launch a product which ends with “Pay”.
Digital Transformation for money. Money becoming bits and bytes from tangible item. Almost all of them have cutting-edge technologies like machine learning, artificial intelligence, artificial neural networks and deep learning. Innovative products with combination of AI technologies and FinTech are flooding the market already.
Technology advancement almost on daily basis that have been happening over last few years – the injection of artificial intelligence like chatbots and customer analytics, the growing popularity of voice assistants like Siri, S voice and Alexa, the advances in biometric authentication – add up to better digital engagement with customers.
This is great for us, but less great for the smartphone companies — particularly the big brands wanting to charge a premium for flagship handsets. Understanding customers better and letting them choose the manner 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 poised to take a bigger role in payments.
Presentation of digital payments
Solutions and stimulating mesmerising presentations to influence subscribers we see every day on our emails. Motivation with thoughts of making more and better business cases are ok but what is needed by customer ? Big companies participating in the play creating only “PAY” games/products without vertical forums to discover which stage of digital maturity journey. Redefining business strategy to become the leader of some one else industry in the Digital Era.
In Digital Banking experience this year, the leaders who are creating state-of-the-art apps, chatbots, authentication and internet-of-things applications will tell us what and how they do it. But the big issue around privacy, info-security and data protection will be debated, like how, which form, on which channel and with whom to share account data and whether or not to try to compete with top-rated.
The recent confirmed attack after years of warnings, mobile network hackers exploit SS7 flaws to drain bank accounts in Germany. This news is likely to send a chill down other banks and organisations across the globe that so called most secured way; using SMS codes as a customer verification mechanism is now almost useless.
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 coming years but on what chatbots are standing on ? AI should be used from the angle to provide more safe, private, cheap and easy methods of payments.
Because of the rapid pace at which fintech, banking services, financial products and payments in digital environment is developed and commercialized, companies may be pushed to start collecting and processing personal information before their privacy and security frameworks are fully developed.
Canadian privacy laws define personal information as information about an identifiable individual. According to case law, information will be about an identifiable individual if there is a serious possibility that the individual could be identified from the information, whether alone or in combination with other information. Accordingly, information about an individual’s online or offline behaviour that is tracked to a unique identifier (such as a device ID, app ID or IP address) will generally be considered personal information in Canada, even if the individual is not actually identified by name or even if the individual is not identifiable to all users of a particular system.
Reasons why consumers still don’t use digital payments
As per current stats and study from internet its been proven that one in three people in developed markets now carries a smartphone and will make most of it like using it for their day to day micro payment needs. But many people doubt that service will not come from banks but from fintech like startups. Banks should rely increasingly on digital channels to serve the fast-growing population of consumers who rely on multiple devices to conduct daily business online.
In the United States, where smartphones account for more than half of mobile subscriptions, one-third of consumers are using their phones to make payments. Digital payment channels/methods from non payment industry companies that appears poised to radically change almost every industry building and breaking brands as it progresses.
Data Value Chain of Digital Payments
As mobile payments evolve, Money is becoming more of an electronic information; no gold or paper is required. Money is just a coded series of binary digits: 1 and 0. Technology providers and financial institutions are working on ways to enhance security and boost customer trust. Precautions include adding new layers of fraud protection, such as tokenization’s, where transactions can be completed without sharing sensitive data like a credit card number and its expiration date.
As world is moving towards digital wallet providers every day, which makes it easy for consumers to pay quickly either for his bread or entertainment or even education purpose with just an email address, mobile number or just tapping few clicks on mobile app etc. Adding this facility to any checkout process of shopping experience always make 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, bank and local payment methods. Unfortunately for banks, many of these payments are transacted through mobile apps controlled by online-payments specialists and digital merchants. We are very confident that software systems can and do adoption jobs dynamically. As mobile payment systems head toward primetime, we could be witnessing the beginning of a profound shift in payment culture.
Digital Payment – Different Modes & Benefits of Digital Payment
Offering a strong payments plan as part of a comprehensive strategy for digital banking is therefore an imperative for banks. But to compete in this emerging arena, banks must meet the expectations of digital natives, delivering diverse tools to help customers make smart decisions across a range of financial services. They should begin by capturing their customers’ most frequent transactions with the new mobile channel and then proceed toward a fully digital relationship.
This is largely due to the huge amounts of venture financing that is flowing into AI, the emphasis that Google and others are putting on AI as the next market battleground, and the tangible results that have been shown to date. Financial institutions and payment providers are looking for ways to utilize AI in a number of areas, including customer interaction and fraud detection.
Books + Other readings Referred
- Open Internet
- Hands on research work & ground experience of @AILabPage members
Conclusion: In conclusion we agreed that where do we go when the era of Central Banking dies? (Bitcoin is a classic example or prime killer) Because it’s about to die — by decentralize organisms that are dynamically scalable and software that can be modified. AI technologies have been around for a while in the payments industry though we may not realise unless been hinted and given examples for it. The neural networks used for dynamic risk scoring but it has never been hotter as a topic than it is right now.
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Correctly said …. Big companies participating in play where game is to create only “PAY” games/words and vertical forums to discover which stage of Digital Maturity Journey are they on. Redefining there business business strategy to become the leader of some one else industry in the Digital Era.
Excellent read, especially on insights into the future of AI on Digital payments
Too many Pays these days
Play with word Pay srarted at hight speed when apple came out with apple pay….. thank you this insightful post