New research from RedCompass Labs reveals that 54% of banks plan to utilize generative artificial intelligence (AI) for instant payments and modernization projects. Additionally, 42% are considering this technology actively.
Payment modernization is a priority, with 91% of banks deeming it important. However, these projects are costly, with banks spending over $100 million on multi-year initiatives and employing large teams for analysis and testing.
The survey of 200 senior payments professionals from EU and US banks indicates that 38% believe AI can reduce the need for business analysts, while 27% expect this reduction within two years. Despite this, banks maintain that human oversight is crucial, advocating for a balance between human and AI involvement.
Tom Hewson, CEO of RedCompass Labs, highlighted the competitive advantage for banks that adopt AI, suggesting that those who do not may face increased costs and diminished market share.
While 100% of surveyed banks are considering AI, concerns about user expertise, data quality, security, and transparency persist. Hewson noted that banks' internal governance and risk aversion could hinder their progress in leveraging AI.
As the payments landscape rapidly evolves, experts stress the importance of applying AI to specific challenges like instant and cross-border payments to keep pace with innovation.