If you don’t save your credit card rewards for a specific purpose, pay off your current debt, or buy airline tickets for a vacation, sift through credit card rewards options.

1. 7/22/2020 Artificial intelligence is changing credit cards and banking | by venkat vajradhar | Jul, 2020 | Medium
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Arti cial intelligence is changing credit cards and
banking
venkat vajradhar
Jul 22 · 4 min read
If you don’t save your credit card rewards for a specific purpose, pay off your current
debt, or buy airline tickets for a vacation, sift through credit card rewards options.
However, some major credit card providers use artificial intelligence to make it easier
for you to choose your rewards, but also provide customers with the rewards they most
desire. In this drive for hyper-personalization of our rewards, artificial intelligence
banking benefits all parties involved.
According to a recent study, 33 percent of customers who quit a business relationship
did so because of a lack of personalization.

2. 7/22/2020 Artificial intelligence is changing credit cards and banking | by venkat vajradhar | Jul, 2020 | Medium
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But artificial intelligence in banking is changing that. implemented by major banks
such as HSBC and Bank of America, AI, and Predictive Analytics, these rewards make it
easier for banks and loyalty program issuers to determine what rewards customers
want at any given time, along with incentives to use their card in the future.
What is AI?
If you haven’t heard the term used before, artificial intelligence is when computer
systems or machines can do things that usually require human intelligence. These skills
include speech recognition, such as Amazon Alexa Virtual Assistant or Apple’s Siri,
visual perception of decision-making, and facial recognition.
So where do these skills AI offers work in the design of banking and enhanced credit
card rewards programs?
How AI banking can change what’s in your wallet?
Just as social media marketers use ad retargeting to deliver more relevant ads to
consumers, banks and credit card companies can create reward programs based on
basic demographic information, but also on your past redemption activity and buying
behavior.
To Know More: AI in Banking: Top Use Cases of Artificial Intelligence in Banking Sector
Banks are already collecting this information — it’s available in your online accounts
and your statements. But it takes countless hours for humans to sift through data, find
patterns, and draw logical conclusions from those models.
AI makes that kind of hyper-personalization possible, so the more rewards you earn,
the sooner you deliver — before you realize you need to reap the rewards you earn.
You may have two options when redeeming future rewards:
Sift through the offers pages to explore how you can get the most for your buck with the
rewards you use.
Receive relevant reward instructions with the best return delivered directly to your
computer screen or mobile device.
Which do you choose?

3. 7/22/2020 Artificial intelligence is changing credit cards and banking | by venkat vajradhar | Jul, 2020 | Medium
https://medium.com/@pvvajradhar/artificial-intelligence-is-changing-credit-cards-and-banking-bba68d0d10c7 3/4
Hyper-personalization: the future (and the present)
AI needs a lot of data to be effective. Fortunately, better services or products mean
more consumers are willing to share personal information, according to digital
banking solutions sponsored by Digital Banking Solutions provider Personalities.
HSBC has already seen a pilot program that uses AI to deliver more relevant rewards
and 70 percent redemption rates based on AI-generated recommendations. To
determine the best rewards, the software analyzes the user’s buying and redemption
history.
The probability of an AI card exceeding typical or expected expectations. Although
humans might think that a person who has previously returned to Orlando may reap
the rewards, AI can integrate all of their past spending habits and recommend other
offers that are still a good fit.
To Know More: How USM’s AI Solutions BenefitYour Business?
Only a small portion of data programs are used to make reward recommendations.
By tapping into location tracking on your phone, your AI card can offer promotions via
text with location-specific offers from the city’s tourist attraction tickets where you can
visit gift cards for shopping center stores.
Best credit cards and banks for AI banking
Many major banks are already using AI banking for hyper-personalization and
improved customer service.
HSBC has made great strides with the AI program
HSBC is on the brink of combining the Client Intelligence Utility with 10 petabytes of
corporate and organizational data from 1.6 million clients.
Voice and AI learn and improve:
Voice recognition is not required for a successful AI card, it helps. Bank of America
reports that most people use Erica through tap and gesture functions, followed by voice
and text.
Voice recognition is still not perfect, and before we can have seamless spoken
conversations, there will be learning on both sides by people and machines. Today’s AI-
powered virtual assistants use more voice, the better Erica, Mezi, Siri, Alexa, and
everyone else understands us.

4. 7/22/2020 Artificial intelligence is changing credit cards and banking | by venkat vajradhar | Jul, 2020 | Medium
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Artificial Intelligence Banking in the Future:
In general, the more data AI collects, the more effective it is. Credit card issuers are in a
strong position to offer their customers the best options for their lifestyle, with the
world of consumer data at their fingertips.
Banks are already using AI to make banking easier and better options for customers to
get out of debt.
Even better options for hyper-personalization, more relevant rewards, and bonus
points are the future and present of AI-powered credit cards.
Arti cial Intelligence Ai Banking Credit Cards Banking Technology Debit Card
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