US Bank Division Sees AI and APIs Meeting Expectations

If trust between financial services companies, traders and consumers is essential for commerce that will happenit is a weak bond.

There are five main threats to that bond: credit risk; counterparty risk; SLEIGHT risk; security risk; and compliance risk.

Rob Seidmansenior vice president and chief product officer of US Bank Advancetold PYMNTS that “trust is a fleeting thing. It takes a long time to build and very little time to tear down.

there many more connections between an expanding range of stakeholders, incl technology companies, device makers, wallet providers, banks and their customers.

For banks – and especially for US Bank Avvance, which offers a point-of-sale lending solution that allows installment loans to entrepreneurs in a B2B2C model – has a balancing act of everything.

There is a certain level of friction that must be injected into digital interactions on Be sure that “you say ‘yes’ to the right people and ‘no’ to the wrong people,” Seidman said. “But you also have to do it in a way that the customer finds it all clear very.”

it It also helps if interactions are quick and convenient, but that’s easier said than done in an environment where risk is rife.Seidman said. Data breaches happen fast and often. For banks and merchants, DATA credit decisions must be supported so that the best interests of lenders, merchants and consumers are protected.

New Risks Are Emerging

“The newer risks are what hold you back,” Seidman said.

Banks are not digital savvy identity verification and account opening. For companies like Seidman’s, the company finds that credit risk is changing rapidly. He added that there are new types of credit and new participants who provide credit that are not always seen in traditional underwriting for credit.

Third party risk is also increasing As open banking take root all over the world and consumers can carry their data with them between all types of providers, as data permits used to perform personal services. What used to be a bank-to-bank transaction or bank-to-aggregator transaction is now bank-to-software-platform-to-aggregator-bank-to-third-party-identity-management-tools and back againSeidman said.

“There are a lot of ‘hops’ that happen to create all the functionality we have,” he said, and regardless of the use case, consumers want you can trust that their data is which is protected.

For US Bank, APIs power layers of security and connectivity to allow users to apply quickly and easily online, Seidman said. If approved, users can view eligible loan installment options without affecting their credit score. Merchants offer the bank product as part of their checkout process.

A Real Time Mandate

In today’s world, the customer experience needs to be real-time, Seidman said, adding that latency cannot be in the mix, especially among younger consumers who are digital-first and less concerned with what company does what and when during a transaction. they only want to get things done.

As Seidman told PYMNTS, “sometimes you’re the front player, and sometimes you’re behind, but you have to do both well.”

Artificial intelligence will be a key tool here, and a careful approach to the use of AI in underwriting and other functions is an important factor in creating a smooth experience.he said. Regulation and more clearly rules of the roadwith the standardization of data flows through the consortium approach and security protocols, will help all players understand the risks and rewards of AI more fully.

On an optimistic level, Seidman told PYMNTS, the customer experience matches the opportunity to meet the needs.