In this episode of the "Payments Podium" podcast, the host, Payments Professor, discusses with Ravi Sandepudi from Effective about the role of artificial intelligence (AI) in managing risks associated with electronic payments. Ravi's journey in electronic payments began at Google, where he worked on Google Pay (formerly Google Wallet), gaining extensive experience in risk management. He highlights the challenges faced in mitigating fraud, especially sophisticated attacks from fraudsters using AI, such as deepfakes for bypassing security measures like KYC.
Effective, Ravi's company, focuses on using AI to assist community financial institutions in managing payment risks. He emphasizes the importance of scale and speed in electronic payments, mentioning how AI can process and decide on transactions in milliseconds, crucial for systems like FedNow, RTP, Zelle, or Cash App, where payments move instantly. Ravi explains the unique approaches of AI in detecting fraudulent activities by considering various factors like phone usage patterns and network behaviors. He also discusses the importance of human experts in complementing AI systems, especially in complex scenarios and policy compliance.
Ravi foresees a future in electronic payments where digital and instantaneous transactions will be the norm, necessitating fundamentally different approaches to fraud and risk management. He advocates for continuous adaptation and the implementation of new technologies, especially for community financial institutions, to stay ahead in this rapidly evolving domain. The podcast concludes with Ravi expressing his passion for supporting these institutions and making advanced technologies accessible to them.
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