Are Robots Coming to a Credit Union Near You?

Are Robots Coming to a Credit Union Near You?
Posted: May 18, 2017
Categories: Emerging Payments
Comments: 0
Author: Tom Davis

Jim McCarthy of Visa says it's possible during CSCU Annual Conference!

Technology like artificial intelligence sounds futuristic, but changes in technology move a lot faster than it seems. ATMs took 18 years to become ubiquitous. Nothing moves as quickly as it feels, but when you look back it seems like it just happened overnight. We still hear that mobile is the future, but really mobile is today – there are more mobile phones on this planet (7.19 billion) than there are humans. It won’t be long before artificial intelligence is integrated in our lives. This was the topic of a presentation by VISA Global Head of Innovation & Strategic Partnerships Jim McCarthy at CSCU’s annual conference. Jim described an example that’s already in place today - Blackrock, the world’s largest equities asset manager, is replacing human stock pickers with artificial intelligence. Robots are now managing mutual funds.

What’s driving the need for machines to do our thinking for us? The sheer volume of data that is being created each day. Smartphone cameras and voice input is producing gigabytes of unstructured data (meaning non-text-based data that is nearly impossible to find by typing in a google search box), and this data has been growing by leaps and bounds over the past few years. Humans can’t keep with the amount of data being generated on a daily basis, but machines have the raw computational power to make predictions.

McCarthy gave the example where Visa is working with elevator manufacturer Kone to detect passengers using biometrics (when the passenger presses the floor button) or via facial recognition, and combining with purchasing profile data instantly serves up ads on monitors in the elevator that are relevant to the passenger(s).

What does this have to do with credit unions? How can the credit union participate in this technology trend? McCarthy answered his own question by stating that commerce does not work without payments. Credit unions and their members are at the center of this. Visa is taking their APIs and making those available to their credit unions partners to create next gen experiences, like what was done to support tokens in Apple Pay to replace the PAN but still work seamlessly at the POS. One way credit unions could take advantage of this, by using artificial intelligence to make predictions such as the ability to predict fraud, or to predict who is a good risk for a loan products.

According to McCarthy, Visa’s goal in helping to develop this technology is to help credit union partners to get their members in the technology “game” in a way to provide safety, security soundness and to deepen the relationship between credit unions and their members.

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Tom Davis

Tom DavisTom Davis

Tom is President & CEO of Trellance. He joined Trellance in 2004 and today wears many hats as highly respected executive and tireless evangelist on new payment technologies and innovations and how they will positively impact the success and growth of credit unions.

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