07/09/2024
Payments industry to use AI to detect fraud, improve efficiency
Payments Dive
Research from the investment bank Jefferies suggests generative artificial intelligence could be used in the payments industry to improve fraud detection and make transactions happen faster.
Dive Brief:
- While the payments industry has used artificial intelligence for years, the advent of advanced generative AI may lead to better fraud detection, more payments solutions for small businesses and smoother business-to-business payments, the analysts at investment bank Jefferies Group said in a research report last week.
- Fraud detection services have long leaned on computer programs to sift through millions of transactions to spot anything out of the ordinary. Generative AI could turbocharge that process, analysts wrote.
- Additionally, AI can automatically match payments processing with outstanding invoices, reducing the amount of time it takes to transfer money between businesses, the firm said.
Dive Insight:
While generative AI has made headlines in recent years for its conversational and writing skills, payments companies will largely use the technology to do what they already do, but better, the Jefferies report released on June 27 said.
For example, banks have programs that monitor activity on credit and debit cards as well as checking accounts for unusual purchases and transfers.
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