PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Is AI Standardization Required for the Future of Financial Services?

By Tim Sloane
March 12, 2020
in Analysts Coverage, Artificial Intelligence, Emerging Payments, Fraud & Security, Fraud Risk and Analytics
0
4
SHARES
0
VIEWS
Share on LinkedIn

I’ve participated in several standards bodies. The standard is often delayed due to competition driven by different use cases and different business market realities. This article suggests an in-memory standard for AI is the best approach.

I would bet there are others that will argue for a different approach, perhaps leveraging existing streaming data analytics or specialized hardware platforms. Currently, all of these approaches are being deployed and I doubt a traditional standards approach could work.

Breakthroughs in AI are being discovered weekly. It is more likely key suppliers will bring their solutions to market as open source and platform providers will produce specialized systems to address specific use cases. That said, the article does identify several key areas that need to be properly managed for an AI solution to succeed:

“Deploying AI for bespoke services demands the writing of tight, effective production-ready code, especially for the use of AI in fraud detection, which must happen in real-time and have a low occurrence of false positives. AI is still developing in this regard – the code and tools used by data scientists often require extensive customisation to become useful to enterprise developers and must be specifically modified to run at scale and in real-time.

AI works best when it has access to a large amount of compute power and high data bandwidth.

The squeeze to develop these low false-positive models means they’re often developed by data scientists, many of whom rely on retrieving data from disk, rather than from main memory. This disrupts developers’ attempts to orchestrate actual inference in real-time, as the seek time when searching for data is too long. Some tools are catching up, though, and inference is beginning to be treated as a real cog in the machine of enterprise software.

Overall, demand is growing for a more standardised approach that pulls and processes a variety of data sets simultaneously. Once the industry adopts this maturity in inference and opts for in-memory databases, AI’s use in fraud detection will become more widespread.”

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

4
SHARES
0
VIEWS
Share on LinkedIn
Tags: AIDataFinancial ServicesFraud Risk and AnalyticsPayments TechnologyTechnology

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    fednow

    How the Evolving Role of the CFO Is Changing Payments Strategy

    August 14, 2026
    real-time payment fraud prevention

    How Innovation Is Transforming Payment Fraud Prevention

    August 13, 2026
    phygital payments

    Why People Still Want Physical Things in a Digital World

    August 12, 2026
    AI debt collection, Apple Pay transaction growth

    How AI Makes Collections More Human—and More Effective

    August 11, 2026
    FedNow Service

    The Use Cases Propelling the FedNow® Service’s Growth—and Shaping Its Future

    August 10, 2026
    merchant debit fee

    Culture Clash: How Banks Are Adapting to Embedded AI Experts

    August 7, 2026
    programmatic payments

    The Rise of Programmatic Payments and the New Compliance Challenge

    August 6, 2026
    stablecoin compliance

    The Death of the Payment Router: Why “Compliance as an OS” is the Only Way Forward for 2026

    August 5, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result