The Disruptive Power of AI in the Current Financial Services Industry

Shaliza Somani is an experienced ecommerce and payment-processing leader with a broad history in the financial technology industry. For the past 4 years, she has headed new business development for Paramount Commerce in Toronto, Canada. One of Shaliza Somani’s professional interests is the use of artificial intelligence (AI) in the world of finance.

The advent of new digital technology typically drives business disruption across multiple industries. Major economics authorities such as Fortune and Barron’s are calling AI a leading cause of ongoing disruption in the financial services sector.

Barron’s positions AI “at the forefront of financial industry disruption” in areas ranging from staffing to operations. Citing a 2019 survey by PricewaterhouseCoopers, Barron’s reports that half of all US executives believe that AI efforts will lead to increased revenue and profits.

Fortune echoes Barron’s sentiments, pointing out that relatively simple AI tools such as intelligent process automation are already successfully handling routine judgment-based tasks and problem-solving processes. It also shares the results of a recent KPMG study, in which 94 percent of auditors and risk management officials surveyed said that AI delivers a competitive advantage.

How Payment Processors and Payment Gateways Differ

Toronto-based professional Shaliza Somani handles new business development at Paramount Commerce, a bank-based processing company. Possessing nearly a decade of experience in digital marketing, sales, and business strategy, Shaliza Somani is familiar with payment processing.

In payment processing, both a payment processor and payment gateway are essential parts of the process. Yet many people are often unclear about the difference between the two.

Usually, a payment processor is the service that communicates between the merchant, acquiring bank, and issuing bank. When a purchase is made by a customer online, that customer presents a payment card for their transaction. Payment processors validate the authenticity of this payment card and alert the customer’s bank of the transaction request. Once the transaction is approved by the issuing bank, the payment information is sent to the acquiring bank or other third-party account that accepts customer funds.

Meanwhile, payment gateways are software that allow payment processors to do their job securely. When customers put in their payment and bank information, the gateway is responsible for safely transporting this information to the payment processor. Gateways also handle information sent by the payment processor once a transaction is approved or denied, and verifies the validity of the card used. Some payment processors offer payment gateway software to clients, but this isn’t universal.

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