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CaixaBank uses AI to simplify direct debit payment management

CaixaBank has implemented AI in payment management

CaixaBank has been at the forefront of AI implementation in Spain

Spanish CaixaBank has unveiled an innovation project which uses artificial intelligence (AI) to manage returned direct debit payments in a bid to reduce the time employees spend on routine tasks.

The retail bank is the primary direct debit service provider in Spain, managing 450 million direct debit payments every year, and became the first financial institution in Spain to invest in using AI in the banking business.

In a statement, CaixaBank said the new system is already being used in more than 600 branches and can make the same decisions as a human to resolve incidents with 99% accuracy. The system is in use in the entire Barcelona network, plus selected branches nationwide.

The system was fist implemented in May, and within the first four months, the AI technology has already resolved a high percentage of cases by itself.

CaixaBank said: “If the model were to be expanded to the entire CaixaBank network, it would save approximately 82,000 hours of work.”

“When a bill is sent to an account with an insufficient balance, the software notifies the customer’s banking adviser, who then analyses the case and decides how to resolve the situation: to permit the bill payment, to reject it, or to postpone it for a few days until the customer has sufficient funds,” the bank explained.

Each case uses multiple variables to influence the final decision: the type of bill, whether it is a regular payment, the customer’s payment history, the customer’s connection with the company in question.

The retail bank has previously introduced facial recognition technology at its ATMs, developed in collaboration with Fujitsu and Facephi.

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