MANILA -The country’s credit card industry is exploring the use of artificial intelligence (AI) and “tokenization” to help detect and potentially prevent fraud, which continues to plague the financial sector.
The use of AI could also help card issuers better understand their customers, paving the way for improved service quality, Credit Card Association of the Philippines (CCAP) chair Ma. Magdalena Surtida said last week.
The adoption of emerging technologies was a central theme during CCAP’s 43rd anniversary celebration.
“For 2024 and beyond, we expect to harness the power of AI and other new technologies to help us further in fraud detection,” Surtida said.
She also pointed to tokenization, or unique identification symbols that can stand in the place of sensitive data such as credit card number, as a means to deter fraud.
The group also tackled the increasing use of mobile apps when making credit card transactions with the goal of allowing users to better control their accounts.
“With these, cardholders can expect more value for money, more flexibility and more options to enjoy rewards points for use here and abroad,” she noted.CCAP is the umbrella group of 17 major credit card players in the Philippines.
Since the start of the year, credit card spending has surged 39 percent to P853 billion. This was partly due to the revenge spending trend but the increase also tracks the rapid increase in prices amid soaring inflation. “People who longed to see family and friends during the lockdown are now doing so, and with a vengeance,” Surtida said. INQ