PYMNTS.com Research: 72% of Finance Leaders Actively Use AI in Their Operations
- Customers have lost patience with traditional banking procedures
- AI continues to be an important tool for creating the preferred banking experience
- Strategic planning and collaboration are vital
Amid rising consumer frustration with traditional banking, PYMNTS asks: Can AI enhance the retail banking experience for the better? PYMNTS has released an Intelligence report, “Is AI the Master Key to Banking’s Next Era?,” in collaboration with NCR Voyix, exploring AI’s potential impact on the future of banking.
Leaders in banking see AI "as a tool for efficiency and a way to create hyper-personalized customer experiences," and check processing is a perfect example. Prior to AI, check processing used a "best-of-breed" approach -- leveraging multiple OCR and ICR technologies. The result was about an 80-85% read rate. However, companies like OrboGraph took check processing to the next level, developing AI and machine learning technologies to achieve over 99% read and accuracy rates and achieving straight-through-processing.
But, how far have we come?
AI In Banking
The report provides insights in the deployment of artificial intelligence in banking:
- 72% of finance leaders report actively using AI in their operation
- 64% of banks use AI in fraud detection
- 42% of banks use AI for customer onboarding automation
Additionally, the report notes that nearly all banks have approved strategic plans for generative AI initiatives.
Challenges for AI in Banking
Despite the promising landscape, the report continues, banks face a substantial challenge in effectively integrating AI into their systems. For one, consumer skepticism remains a major barrier;
- Approximately 20% of U.S. consumers see AI tools as a potential security risk,
- 14% refuse to engage with AI-driven financial services.
That's not to mention internal challenges;
- 37% of banks worry that AI could heighten their vulnerability to cyberattacks.
Moving Forward with AI
Fortunately, the road forward is clear:
Forming alliances with FinTech companies can drive innovation and facilitate AI adoption. With 39% of banks acknowledging underinvestment in AI infrastructure, these partnerships are crucial for deploying effective AI solutions that meet consumer and regulatory demands.
This is why many financial institutions have selected OrboGraph as their partner in check processing automation and check fraud detection. OrboGraph has been a trusted fintech partner to the banking industry for over 29 years and works directly with banks or other fintech vendors to deploy its AI technologies. This gives banks the ability to deploy AI directly, through their core processor/items processor, or other fintech vendors -- alleviating the burden on their internal resources.
The potential of AI is clear, and companies like OrboGraph made integration easier than ever before -- it's now on the banks to take advantage.