Additionally, we examine the impact of AI on the industry and the importance of compliance, fraud prevention, and easy-to-use onboarding software that leverages AI to meet the needs of new users.
Digital Banking and Mobile Payments
Digital banking and mobile payments are rapidly gaining ground in the current market, with an estimated 1.75 billion people worldwide expected to be banked by 2024. This growth is fueled by the widespread adoption of new technologies in emerging markets such as Mexico, Colombia, Argentina, Brazil, and Nigeria. Moreover, many individuals will use mobile banking as their primary connection to the global financial system.
The rise of digital banking is also directly impacting the expansion of mobile payments. This trend is creating new opportunities for investment and growth for companies that have invested in digitalization in emerging economies. Furthermore, the development of digital usage in the banking sector is blurring the lines between countries, allowing mobile banking platforms to expand simultaneously in different markets.
The Role of AI in Digital Banking
- Detection and Prevention of Fraud: With the increasing use of digital banking and mobile payments, it is critical to have efficient fraud detection and prevention tools. AI can aid by analyzing more real-time data, allowing faster and more accurate fraud detection and prevention than traditional systems.
- Improving User Experience: As mentioned, offering an exceptional user experience in digital banking is crucial. AI can assist by personalizing the user experience and automating processes, such as onboarding, reducing waiting times, and improving efficiency in user support.
- Regulatory Compliance: The growth of digital banking has generated many regulatory and compliance challenges, particularly regarding AML and KYC guidelines. This is especially true for banking firms that operate in multiple regions with continuously evolving compliance requirements. However, AI can provide an effective solution by analyzing large volumes of data and automating processes, leading to more efficient and accurate compliance and mitigating the risks of sanctions, fines, and reputational damage.
For instance, the use of AI technologies in compliance software has saved about $11 billion in global fraud prevention costs just in 2023, displaying the significant impact of these technologies on efficiency and cost reduction for companies.
Generational Shift = Market Shift
The growing use of digital banking and mobile payments is also generating a shift in the expectations and needs of end-users regarding the speed and ease with which banking institutions must provide their services. Therefore, it is increasingly important for users to open bank accounts quickly, request loans with comfort and efficiency, and receive agile and quality service.
This generational change in the market has led many banking and Fintech institutions to improve their services, aiming to offer customers a faster and more efficient mobile experience. As competition within this industry strengthens, companies must enter the game as soon as possible to provide onboarding, credit origination, and account opening services capable of responding to current and future market demands.
MetaMap: Compliance, Onboarding, and Fraud Prevention, All in One AI-Powered Platform
MetaMap is the leading customer identity platform in the African market, with extensive experience working with multiple companies in the banking and financial sector. We help them implement enhanced and AI-powered compliance and security solutions, improving internal process efficiency and increasing the conversion of new users.
Our AI-driven tools, such as collecting and analyzing biometric data, regular transaction monitoring, and 25+ other features, are enabling companies to detect and prevent fraud automatically, significantly reducing inherent risk for banking and credit businesses.
In addition to offering a personalized solution, our platform also focuses on improving the user experience through innovative onboarding tools. Our clients can rely on a fast and secure onboarding process by collecting and comparing data from 1,200+ PEP and AML watchlists, government data, and the automatic processing and validation of identity documents.
Try MetaMap’s AI-powered customer identity platform today and get 300 free verifications. Sign up now and stay ahead of regulatory requirements while protecting your business from potential risks.
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