Visa debuts AI-based financial advice

Visa is launching a new AI-powered financial assistant that directly influences how your customers manage their spending and debt. The tool integrates into banking and fintech apps. It uses Visa’s massive database of 257 billion yearly transactions to give customers real-time, conversational advice on what they can afford. For retailers, this means the 'point of sale' is moving further upstream. Your customers will soon have an AI coach in their pocket telling them whether a large purchase fits their budget or if they should opt for a financing plan. This technology bridges the gap between a customer’s bank balance and their desire to buy. If the AI suggests a payment plan to help a customer manage cash flow, it could increase the conversion rates for your existing financing offers. However, it also means customers will be more informed about their debt. They will likely favor transparent, fixed-rate financing over high-interest credit cards. Businesses should ensure their financing options are clear and integrated, as AI tools will quickly flag 'bad deals' to shoppers. Retailers who offer seamless Buy Now, Pay Later (BNPL) or low-interest installments will be better positioned as these AI assistants become the primary way consumers make spending decisions.

Source: American Banker — Top News

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