If every industry has started leveraging Artificial Intelligence into its products and services then why not the credit card service? Yes, credit card companies can also reap the benefits of essential and smart functionalities of Artificial Intelligence and machine learning algorithms efficiently. This integration is set to enhance the credit system that can help in the faster adoption of digital wallets in the nearby future. Multiple banks across the world provide credit cards with different interests, amazing deals, offers, and rewards to pay back the spent money. It is becoming a primary way to pay for several products and services with sufficient convenience and security.
The global credit card market is predicted to hit US$103.06 billion in 2021 with a CAGR of 3% whereas the global market of Artificial Intelligence is expected to reach US$228.3 billion in 2026 with a CAGR of 32.7%. Thus, there can be multiple ways in which leveraging Artificial Intelligence and machine learning algorithms can improve the credit card market in the nearby future.
Enhanced Security System
Credit card companies, as well as credit card accounts, are the most preferable weak links to malicious hackers for gaining sufficient money without any immediate notice. It is highly risky for credit card issuers to use the credit system on multiple online sites without confirming its authenticity. Leveraging Artificial Intelligence provides an enhanced security system of credit cards and utmost protection from frauds and hackers. Fraud detection functionality is also utilized by these credit card companies for immediate alerts of any unusual activity in any account for a better credit system.
Better Customer Service
Credit card companies fall under the category of banks and other financial institutions. Thus, here also Artificial Intelligence and machine learning help these credit card companies in better customer service and generate insights for customer-centric marketing campaigns. These machines analyze demographic data and historical data of consumers and help to offer any essential and attractive targeted promotions to attract potential customers with better customer service.
Chatbots for Hyper-personalisation
Credit card users always tend to have some unique and different queries regarding their credit card accounts and services. Implementing Artificial Intelligence-based Chatbots can provide hyper-personalized services to these customers for a better understanding of their queries through NLP. Chatbots provide personalized solutions to each customer and also help them to check the remaining balance, due amount, deadline, and many more in any place at any time for a better credit system.
Approval of Transactions in Any Network
Machine learning algorithms can now approve credit card transactions seamlessly without depending on a bank’s network. Visa has recently created this advanced algorithm that can mimic a bank’s decision for approval or denial of any transaction in a credit card. VISA has also utilized deep learning neural networks to make a connection with a human user and the past habits to study any unusual activity faster. Thus, it is easier to receive approval of any transaction despite the network status of that particular bank.
Offering Personalised Rewards
Implementing Artificial Intelligence into a credit card system can provide personalized rewards to credit card users regularly to motivate them in paying the spent amount within a specific date with interests. These personalized rewards and offers are relevant and useful to these users that also help to drive incremental returns for the advertisers. Some restaurants and retailers offer massive discounts to disciplined users who pay back the money in time for a better credit system. Some users redeem rewards for one specific award in a category, especially recommended by Artificial Intelligence. It analyses the historical data and recommends useful and favorable products and services to each credit card used as a reward. It also helps to offer rewards within a specific location of a credit card user so that the person can utilize the reward effectively without traveling long distances.
Alerts for Bill Payments
Providing constant reminders or alerts for bill payments is one of the most important benefits of leveraging Artificial Intelligence in the credit card system. It may be impossible for human employees to detect the nearby bill payment due dates of hundreds of customers and provide alerts to their phones through SMS or email. An Artificial Intelligence model is known for its expertise in automating mundane tasks for human employees. Thus, it helps to give reminders to customers for due dates, renewal of a subscription, reward pending, and so on.
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