The last in our 4 part series that further explores the four key focus areas outlined in our Future of Payment’s Top 10 List of Payment Themes in 2024 based on the ongoing evolution of the payments industry.
Focus Area #4: GenAI Hype Turning into Delivery Pragmatism
Generative AI (GenAI) is being explored for its potential to innovate payment solutions and customer interactions. Implementation of NLP models for customer service and ML models for fraud detection, along with big data analytics for strategic decision-making in payments appear to be the key focus areas. Payments companies are actively exploring Generative AI technologies and there’s definitely enthusiasm for potential use cases; however, there’s also a recognition that execution/delivery remains a challenge and the payback business cases are being closely evaluated.
Most companies are not building foundational Large Language Models (LLMs) from scratch due to talent and resource constraints. Without question, AI will transform the evaluation of spending insights and enable more personalized customer experiences in financial services/payment and will enhance efficiency and produce more tailored services/insights.
Areas that will get additional attention on top of the GenAI evaluation will be DLT (distributed ledger technology) and quantum computing. The emphasis/business needs for DLT are centered around financial institutions requiring more robust/scalable DLT solutions for operational integrity/market competitiveness with an underlying assumption that DLT can offer more secure, transparent and efficient transaction processing, especially if institutions prioritize DLT/blockchain for risk modeling and fraud detection.
In terms of the underlying business needs for quantum computing, entities will leverage this capability for advanced analytics/decision-making processes across various products/services as it offers unparalleled data processing capabilities in bulk while also tackling complex calculations for risk modeling in particular for financial services/payments.
To adapt to these trends, businesses should invest in new technologies and focus on customer-centric solutions. The overarching themes for 2024 emphasize speed, convenience, and security in payment processing.
