What are the  Ways AI(Artificial Intelligence)  can effect Credit card Industry?

Credit cards is now a prearranged finance for many decades and in countries like America there are over 650 million credit cards accounts in operational .

So new technology Artificial intelligence (AI) is  now trending in market and advanced a lot. AI (artificial Intelligence) has started impact on  credit card industry too.

AI can impact both on consumers and institutions .This is a computer program thinking or act  like a humans .The new technology makes accurate decision,planning analyzing on data like habits on spending ,demographics.

 Detection of Fraud/Malpractice

Online shopping trend is growing and so credit card frauds will also cross $500 Billion in the coming decades.Millions of transactions are analyzed by AI at fast pace which helps banks or credit card companies  to detect  malpractice of credit card easily and quickly.So thus reducing fraudulent transactions with protecting customers from theft.

AI can also find behavior of consumers,any suspicious activity,detect changes or deviations if any. AI can also prevent future attempts of fraud  of certain type of patterns as such they are trained to recognize these frauds too.So financial institutions are alerted faster if activities are done  manually .So helping to avoid loss or damage can occur if detected early .

 Credit score more accurate the calculation and precise

Using AI has big potential to revolutionize the calculation of credit score.Artificial intelligence checks and identifies trends,patterns that   human analyst can;t  do very fast . Individuals changes in financial behaviors  easily detected  by AI over period of time .So creditworthiness can be predicted by theses changes in future.

So this is very useful for improvement of credit score and paying debts  are easily  tracked,recorded timely payments  In addition lenders are helped by AI giving more informed decisions with more accurate data of person credit score.

AI has the ability to help individuals who are starting with or without ,limited credit history. Alternative data can be used by lenders like employment history,behavior in online process,determining to extend loan or offer on credit card.By observing borrower behavior AI provide financial advice  for building credit and overall improvement of financial base.

Service for customer

Chat bots of AI powered for customer services  are in use and more advanced too.Thus providing efficient experience for customers for  those with issues with credit cards. So these chat bots can improve better,from earlier communications and responses.

Digital banking  widely accepted online and  banks has  adopted chat bots like technology. In the Year 2019 2% of banks and and 3% of credit unions use   chat-bots in America and now in 2023  this has increased in 10 times that is    18 % of banks  and 35% credit unions adopting  chat bots and 25% will be implemented ahead .Coming years customers will be clarified doubts answered  by chat bots which we cannot find we are speaking to humans or robots.

Analysis of Data

AI can analyze large  data providing insight in customer pattern in behavior. So the information can be used by card companies to decide ,plan what  services or products will be successful and stay ahead in the completion.Yearly wise  in america people pay $125 billion as interest on  credit card and fees and nearly $1 trillion adding to total debt of credit card.

Offer ,promotions and rewards maximizing

With the AI Usage companies in credit card can analyze  c spending habits with providing personalized offer and promotions.Customer satisfaction and loyalty will be increased.Suppose  AT networks fins customer requires money on travel ,AI can suggest discounts on airfare and stays at hotel

So this is very important for comparing accurately and find best credit cards for  needs and AI will quickly compare features  like annual ,reward programs ,interest rate helping consumer fit for personal finance. 

AI can detect frauds ,offer rewards , and becoming a big game player in finance sector effecting credit card industry both banks and holders of credit card.

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