Welcome to the Top 3 Innovating Payments News Headlines for the week of Aug. 12. In this issue, a PYMNTS intelligence report, "AI's Role in Advancing Real-Time Payments," in collaboration with The Clearing House, explores the evolving landscape of real-time payments and the critical role of AI in addressing associated changes. Discover why new data on payments fraud calls for a shift from siloed operations and more. Also, for younger consumers, payments is banking. This growing appeal of non-traditional financial services providers still threatens market share, while the data on customer loyalty underscores the need for financial institutions to innovate our retention strategies.
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1. 77% of Consumers Expect Banks to Use AI to Fight Fraud (PYMNTS)
Real-time payments, known for their speed and immediacy, have faced adoption hurdles primarily due to perceptions about security. As financial institutions (FIs) and payments providers grapple with balancing rapid transaction processing with stringent security measures, artificial intelligence (AI) emerges as a crucial tool in overcoming these obstacles. A recent PYMNTS Intelligence report, "Instant Impact: AI's Role in Advancing Real-Time Payments," in collaboration with The Clearing House, explores the evolving landscape of real-time payments and the critical role of AI in addressing associated challenges. (Read more.)
2. Finance Professionals Grapple with Payments Fraud (Payments Dive)
In the June survey of 516 finance professionals, conducted by payment security solutions vendor Trustmi, more than one in five respondents (22%) said their organization has already been targeted by AI-driven deepfake or executive impersonation attacks. However, 48% of the participants - which included CFOs, treasurers, and accounts payable professionals - said they didn't know how many times they've been targeted with payment fraud attempts of any type over the prior 12 months. And 51% said they didn't know how much money such fraud cost them during that time. (Read more.)
3. For Younger Consumers, Payments Is Banking. Why That's Trouble for Traditional Institutions (The Financial Brand)
The trends towards digital and contactless payments-especially among younger generations-has the potential to directly challenge the traditional banking model. The growing appeal of non-traditional financial services providers still threatens market share, while the data on customer loyalty underscores the need to innovate our retention strategies. Embedded finance and P2P payment providers particularly present both opportunities and threats bankers can't ignore. Moreover, the insights on economic pressures affecting consumer behavior and increasing fee sensitivity are vital for bankers' risk management and pricing strategies. (Read more.)
Do you see AI playing a role in fighting fraud, especially real-time payments fraud, going forward? How might a shift from siloed operations in your financial institution affect payments fraud? What is your financial institution doing to combat the trends towards digital and contactless payments-especially among younger generations-which has the potential to challenge the traditional banking model directly?
Check back soon for our next issue, which will highlight the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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