Alice Chambers |
Microsoft partners Cognizant and VeriPark showcased how the rise of alternate payment methods and advancements in AI-driven banking solutions are transforming the financial services landscape at Money20/20 USA.
As consumer demand for secure and convenient digital transactions grows, businesses are adopting alternate payment methods to improve customer loyalty and meet expectations. Meanwhile, innovations like generative AI are enabling banking organisations to enhance customer engagement, streamline operations and boost productivity.
The rise of alternate payment methods
According to Guru Sahajpal, industry lead for financial services and fintech at Cognizant Technology Solutions, alternate payment methods are reshaping the global digital payment industry, driven by the surge in mobile internet access and the demand for secure, user-friendly transactions.
Sahajpal explained how digital payment adoption continues to rise as consumers prioritise convenience and security, citing Truelayer’s Payments experience playbook, which reveals that 87 per cent of consumers are frustrated with traditional online payments while 64 per cent consider security as the top priority for online purchases.
Merchants, in response, are turning to alternate payment methods to boost customer loyalty. Sahajpal shared that 93 per cent of merchants believe offering flexible payment options is crucial, and 91 per cent agree that diversifying payment methods can attract new customers. Younger generations, particularly Generation Z, are a key demographic driving this shift, attracted by lower costs, enhanced security and personalised rewards.
By 2029, nearly 70 per cent of e-commerce transactions are expected to use APMs. To fuel this growth, businesses are focusing on streamlined checkout experiences and next-generation user interfaces, incorporating AI for personalised options and reducing friction in the purchasing journey.
Microsoft’s Chad Hamblin will discuss personalising banking experiences in the Winter 2024 issue of Technology Record. Subscribe for free today and get future issues delivered straight to your inbox.
Driving meaningful interactions in banking
VeriPark showcased how its suite of omni-channel solutions can help banking organisations create a more seamless, consistent and meaningful customer experience across all channels.
Nadeem Esmail, account executive at VeriPark, spoke at the Microsoft Lounge about how AI transforms financial services across multiple departments. He highlighted how 90 per cent of companies are adopting AI as a “workforce partner”, according to Gartner. And that banks can have the potential to make $200-340 billion in annual revenue with generative AI, referencing McKinsey’s The economic potential of generative AI report.
“Intelligent banking with AI bring multiple opportunities,” said Esmail. “These include workforce productivity and efficiency by eliminating mundane tasks, higher business value driven by hyper automation projects, risk management and enhanced customer retention.”
Esmail then explained how VeriPark’s generative AI solutions improve efficiency and customer engagement. For example, VeriPark copilots address several key use cases such as helping branch managers to source new leads and summarise highlights from client meetings; automates operations for mortgage advisors and operational team members by sorting through risk notifications and loan documents; and creates personalised emails, project plans and marketing content for relationship managers, sales and marketing professionals.
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