Finscend’s Artificial Intelligence-Driven Bank Dispute Platform on Target to Trim Billions in Costs for Financial Institutions
Finscend’s artificial intelligence-driven Bank Dispute Platform (BDP), which automates and streamlines the credit card dispute process, will save banks and consumers time as well as cut processing costs by up to 25%. By analyzing the dispute process globally, Finscend discovered how challenging it is for banks and consumers to navigate the current system and how automating it can benefit everyone.
The credit card dispute process costs the top 15 American banks over $3 billion annually. Those losses are due to deficiencies in standardization, knowledge, software, and customer service. Of course, that is just a fraction of what all financial institutions worldwide currently spend. Finscend analyzed feedback it received from more than 700 banks around the globe. And when it did, it was able to identify the shortcomings that generate those loses.
Delays Are Due to Manual Processing
In Q1 of this year, Finscend studied the dispute process employed at each bank it its survey. One of the problems it discovered, for example, involved dispute resolution involving Visa cards. A transaction charged to Visa should take 30 days from submission of the initial complaint to resolution. Nevertheless, on average it actually takes approximately three times as long. In the UK, the dispute process takes even more time ‒ over 100 days. The primary reason why this occurs is that the process is primarily manual. By harnessing AI to replace subjective criteria with objective criteria, Finscend was able to develop a solution. A solution that overcomes service gaps while cutting dispute processing costs by up to 25%.
Finscend’s artificial intelligence-driven Bank Dispute Platform (BDP) accomplishes this by:
- Providing an end-to-end solution for the credit card dispute process that connect all necessary data points
- Streamlining the waiting time by automating all requests, items of documentation and resolutions
- Incorporating a “Dispute or Not” (DoN) AI-assisted predictive scoring model, which interprets the data and standardizes the entire process
In addition, BDP features real-time reporting, batch processing and fraud monitoring. Proprietary tools ensure that it integrates seamlessly within the banking ecosystem by working in tandem with Visa® and Mastercard® schemes.
Making It Easier to Raise Disputes
“Finscend will save banks and consumers from the ongoing pain they currently experience in the dispute process,” said its CEO, Aaron Lazor. “Cardholders will now be confident that if they ever fall victim to fraud or scams,” he adds. “And it will be easier for them to raise a dispute and receive a chargeback,” he continues. “Because we identified and simplified the dispute resolution bottleneck our platform will become even more crucial in the years ahead as transactions become increasingly cashless.”
Finscend’s artificial intelligence-driven Banking Dispute Platform (BDP), introduced in 2018, is the most technologically advanced solution of its kind. BDP was conceived and designed for banks, other financial institutions and credit card issuers by financial industry veterans who have a first-hand professional understanding of the challenges of dispute resolution. The core of this unique solution is an AI-driven engine that streamlines the entire dispute process by offering real-time reporting, batch processing, fraud monitoring, and an enterprise user account area. BDP employs proprietary tools to ensure that it integrates seamlessly within the banking ecosystem, and it works in tandem with Visa and Mastercard schemes. By deploying BDP, banks can reduce the costs of chargebacks by an estimated 25 percent and significantly increase cardholder satisfaction.