Artificial intelligence (AI) and cloud computing are quickly transforming the operations of payment service providers (PSPs).
At EBAday 2023, Claudia Olsson, CEO and founder of Stellar Capacity and a Young Global Leader at the World Economic Forum, emphasized that existing structures are not adequately equipped to handle advancements in cloud computing, AI, and generative AI. She stated, "In the coming years, we will have to rethink our global architecture, how it’s developed, decision-making processes, and how we collectively identify potential opportunities.”
This need for re-evaluation is becoming increasingly evident, as seen in the EBAday 2024 agenda, where these topics are central across various sessions. While European banks have embraced cloud technology, its full potential remains untapped, despite positive sentiment regarding its flexibility and scalability. Payment practitioners must consider whether the payments-as-a-service model could be a viable option.
Additionally, with the emergence of tools like ChatGPT, AI remains a significant topic in the financial services sector, though the definitive application of generative AI has yet to be identified. Historically, PSPs have relied on rule-based AI, including machine learning and robotic process automation. However, the introduction of large language models provides new opportunities for differentiation.
As tech giants in the U.S. compete for dominance in AI, the push for developing generative AI is intensifying. In 2023, for instance, Microsoft’s Azure experienced a 31% revenue increase attributed to AI advancements. Clearly, investing in AI is essential for the future, and financial institutions must keep pace.
The ongoing role of the cloud in the digital transformation of banking and payments is still unfolding. Discover effective strategies for banks to streamline operations, scale efficiently, and enhance time to market at EBAday in Lisbon, Portugal, on June 18-19, 2024. Register here.