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Harnessing Machine Learning in Payments

Harnessing Machine Learning in PaymentsAbstract – As I mentioned in my earlier blog post “Machine Learning in FinTech – Demystified”  you will realise today in payments machine learning is one of many advanced, most talked and becoming critically important tools for analytics got its place business toolbox with lot of pride and respect. Main objective is depict how Machine learning can and has already extended into so many aspects of daily life. ML gets the problem-solving call in conjunction with deep learning artificial neural networks. As these jargons i.e AI, ML, DL or ANN etc may be getting their day in the sun, but they’ve been around for a while. It’s just in the past 5-10 years that they have gained traction, technology that was once niche is now becoming more mainstream and cost-effective reaching to common man. Until recent machine learning was known as historical phenomena in the worlds of academia and supercomputing. This is the part 3 in this series first part was Artificial Intelligence for Digital Payments Security and second part was Data Science of Payments.

Introduction – Artificial Intelligence domain is still very new and at just initial stage, trust me no one in todays time (at-least I wont believe any one who says he/she know everything in AI) knows the full domain/scope/boundaries of AI. Technologies like this which don’t have limits can be dangerous also. Machine learning techniques are a great fit to improve the info-security for financial security and getting expanded beyond fraud detection. Due to the nature and process of its working model and to be effective machine learning is very effective involving large dynamic data sets to train it self,  test and do the predictive & prescriptive analysis. I can train and learn the consumer behavior by tracking certain patterns and behavioural biometrics will give it flying wings. When behavior changes it raise alarm and when behavior’s change, it can detect subtle shifts in the underlying data, and then revise algorithms accordingly.

Main Story – Machine learning is not new in payments industry its well known and familiar tool primarily used in credit card transaction monitoring game at basic level. In card industry rule based learning algorithms play important roles in near real-time authorization of transactions. I am sure these application companies will admit that it’s very early days for this proposed future. As such, all of these assistants are far from polished. That said, I would agree that most AI applications nowadays are indeed using or will use ML soon. ML can be handy for us to do some tasks much better then human impact in certain industries. For instance, we might think of fraud detection as the canonical example of machine learning in the financial sector. Currently, majority of machine learning approaches in info-security is used merely as basic “alarm” or as simple “warning” system. Which often needs human intervention to make action and make decision which may not happen after few years down the line.

As a result, the humans has the final decision due to their lower false rates any critical or important decision on payment intelligence matter. May be few years down the line from now our immediate reaction to the same question’s (As mentioned above) answer would be “Please don’t hurt us”. Just to describe on simple and high level; the three widely used terms i.e. Artificial Intelligence, Machine Learning and DeepLearning can be arrange as below. Deep learning, which is itself a kind of machine learning is becoming more an more popular and successful at different use case. BaaS (Banking as a Service) came as friend which a package of best deals i.e best analytics blended with artificial intelligence, data intelligence,  payment intelligence, Big Data and really deep technology with help of deeplearning i.e selfie based payments. Platform to perform BaaS software service BaaP (Banking as a Platform) got emerged, for all such companies to break bank’s attitude as they were long seen as a highly technical, highly complex with rocket science technology.



Behavioral biometrics is the undisputed example of machine learning for information security. You may merely have to look at a variety of ubiquitous technological experiences you undergo each day, and find a myriad of machine learning applications at your core of the day. Companies have started managing their data like they manage their money. Recommendation engines at Netflix and Amazon are best examples of machine learning in retail. In matter of next ten years or less, AI will be ingrained in everything we do today. Today we ask what AI can do for us other then harming as described by some big names of this industry. It’s a basic but profound question that merits some thoughts based on my 19 years experience managing / running / developing / designing both information and financial technology functions in technology and data businesses. Long and short of it AI can do and have done lot of good things.

Harnessing Machine Learning in PaymentsImagine imagination as a tool because it helps us move beyond mental blocks. To understand what “imagination” is, we could look at how it works. Threat Intelligence will play a bigger role coupled with an evaluation of the driving factors and key capabilities required by convergent systems and requirements. With advancement in technology, organisations outside the banking industry diversified into financial services targeting margins in the space. These were organisations servicing millions of customers through broad distribution channels, be they mobile operators, retailers or on-line merchants.

The most dramatic advances in AI are coming from a data rich or data greedy techniques i.e machine learning & deep learning. Machine learning requires lots of data to create, test and “train” the AI. Which is the best direction? The answer lies in the analysis of future technologies development within the 3GPP framework (For Telecom), FinTech, AI and AGI, Machine learning & Deep Learning. There’s no single answer to this without end-to-end architectural analysis. AI and blockchain  combination is explosive! Blockchain technologies . It  can help realize some long-standing dreams of AI and data analysis work, and open up several opportunities.


ANN, ML & DL are type of or subdomain of artificial intelligence (AI) where computers can essentially learn concepts on their own without being programmed. The scenario is already quite imaginable. For example, AI might program your decision based on stock market data where to invest and how for how long in what. The implications are vast and not always completely understood. For example, it’s commonly believed that AI will ease traffic congestion and pollution; now some experts wonder if it will actually lead to less public transit use and make people fatter and out of shape because they don’t walk to the bus any more.

Conclusion –  In short all I can say with full confidence is machine learning is going be diva and  major opportunities finder/locator in payments. AI can be very dangerous if it gets into our life too deep (actually its almost there). AI take us to work with shorted and fastest possible route, and when we get there we use tools system based on big data analytics to make our business decisions. Another intelligence engine normally decides, based on what kind of day we had yesterday(data based); what we will be doing today as appoints to achieve todays goal we might get options or  perhaps our bot will already schedule/reschedule our appointments. But what will happen when AI will develop a mental disorder?, if mind cant be insane its actually not mind. AI over taking almost every felid of todays’s industries, Elon musk is repeatedly telling us that AI will lead us to some disaster a major disaster and after that nothing will be left behind. ANI (artificial narrow intelligence) based applications like Cortana, Siri, Alexa and Google Assistant in market as AI babies but still technology has come a long way.

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