Artificial intelligence could help make the payment process more efficient — if those in the payments industry understood how AI works.
Ninety-two percent of payments professionals across 32 countries feel there is a need for a better understanding of applying AI technologies to payments, rather than relying on all of the hype about AI in consumer technology, according to new research from fintech software provider Pelican.
AI technologies include natural language processing, knowledge-based systems and machine learning that can be combined with a digital knowledge base of transaction banking and compliance.
Nearly 75% of payments professionals in the survey also see a strong potential for AI to tackle the many inefficiencies present in their payments processing activities, while 67% feel banks will increasingly adopt AI technologies to improve the payments process over the next two years.
Sixty-five percent of respondents felt payments routing was currently the most inefficient operation under current technology; 63% percent cited sanctions screening, anti-money laundering and fraud prevention as other common areas in which an AI solution could help.
Customer retention, message repair, exception handling, payment reconciliation and payment validation and authorization also scored highly.
Pelican provides AI technologies, which has developed over the past 20 years, through its Intelligent Payments Management service to profile payments digital precision while also applying "human-like reasoning to transactions," the company stated in a Sept. 26 press release.
To date, the company says it has processed more than one billion transactions worth more than $5 trillion. Pelican serves more than 55 countries globally, with offices in New York, London, Dubai and Mumbai.
"We hope this survey serves as a wake-up call to an industry still relying heavily on manual processes and legacy systems," Parth Desai, founder and CEO of Pelican, said in the release. "The need to adopt smarter tools has never been more vital."