A new white paper from RS2 says banks have suffered the effects of out-of-date legacy systems for too long. These negative effects include ineffective system performance, low innovation capacity, high cost and risk, and poor customer experiences.
Furthermore, RS2 claim that bank attempts to resolve this problem have so far been ineffective, whether that’s through high-risk strategies such as “patching”, or even the “build/buy/partner” debate – which RS2’s new paper says is a debate that asks the wrong question in the first place.
Instead of these approaches, RS2 argue that by introducing an AI-enabled orchestration layer, banks could create a central intelligence hub to link all their platforms and deliver optimal performance across the board thanks to data-sharing and access to a centralized set of metrics.
This includes all banking platforms, from card management, user experience, ledgers, and external third-party integrations, through to billing and settlement, interchange, scheme fees and reconciliation.
Examples of the kind of AI-enabled service RS2 describe in their new white paper, “How to solve banks’ legacy system challenges while controlling risk” include: intelligent transaction routing, which helps to reduce declines, improve conversions and optimize cost, and AI-powered fraud detection and risk scoring for lower fraud, fewer chargebacks and better and easier compliance with national and supra-national regulations.
AI-Enabled Orchestration
AI-enabled orchestration can also help banks to implement real-time payment optimization and smart decline recovery which will deliver fewer transaction failures, and by extension lead to higher revenues from a bank’s payment function.
Banks that embrace AI analytics at the heart of their systems also gain deep insights into customer behaviour and merchant activity.
Thanks to these insights, banks can empower merchants to create personalized offers and rewards based on customer behaviour, as well as offering competitive pricing based on insights, or special fee offers based on most frequent transaction types.
Banks can also provide merchants with predictive analytics about when customers are likely to churn, and analyse customer engagement patterns to help merchants retain their clients.
The factors listed above are just a few of the benefits delivered by AI orchestration as outlined in RS2’s new study.
All banks recognize the burden of technical debt as a negative result of their continued reliance on legacy systems: in their new white paper, RS2 present a breakthrough AI-enabled platform orchestration methodology as the solution.
This system uses self-hosted AI developed with decades of experience in banking to enhance system performance, reduce costs, and optimize existing tech stacks without exposing sensitive financial data to external entities.
Download the new white paper from RS2 now for more on their revolutionary AI-enabled systems orchestration approach to legacy systems challenges.
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