The financial industry is always evolving and innovating alongside technology advancements to improve efficiency, as well as enhance the overall experience for both financial institutions (FIs) and their customers.
In recent years, we’ve seen the trend of faster payments—Zelle, same day ACH—become pervasive. Even in the last year, where the need for easy-to-use digital channels became a priority for many customers, credit unions are looking to provide their members with as many benefits as possible. According to a study by Aite Group, 82% of community credit unions and banks would consider adding an additional payment rail to improve customer experience.
However, this rapid shift to faster payments has put pressure on teams worldwide, and smaller FIs are finding that they’re stretched too thin to properly accommodate the needs of their members. Even with the best analysts working through alerts all day, as more solutions are implemented and new members join, sooner or later smaller FIs are going to be overwhelmed.
Not the “job-killer bogeyman” of your nightmares, artificial intelligence (AI) can become the sharpest tool in your toolbox. In the case of the overworked analyst above, AI can recommend which high-risk alerts to focus on, ensuring that major fraudulent activity is caught in real time.
Through AI-based analytics, credit unions can now see all the risk factors that affect a case in a singular pane of glass. Now that AI can discover patterns and risk levels at record speeds, what once took weeks to conclude now only takes a matter of days or even hours.
Financial criminals are, above all else, cunning and adaptable. As the global community continues to advance and embrace faster payments, the risk of fraudsters capitalizing on vulnerabilities has never been higher. Even now, fraudsters are employing their own AI to target high-risk members in ways we’re not accustomed to.
If you’re relying on an old, outdated rules-based system, fraudsters will easily exploit both you and your members. Smaller FIs have a duty to protect members, and by implementing AI, that duty becomes that much easier to make a reality.
The future is now, and AI doesn’t have to be feared. By using AI, credit unions of any size can optimize their processes and competitively operate, as well as protect their members from the risks of evolving fraud.
To learn more about how AI can allow you to work smarter, not harder, click here.