While a threat to traditional issuers, modern card issuing is driving up the number of credit card account openings. These platforms let nonfinancial players offer card programs through cloud-based application programming interfaces (APIs)—increasing consumers’ exposure to credit cards. The programs can also be customized to the needs of each business’s customers, improving conversion overall.
Solutions powered by generative AI (genAI) can also attract—and approve—more cardholders. Marketers can use the tech to tailor product recommendations and promotions to personalize customers’ experiences. GenAI can also improve the accuracy of credit scoring models by creating robust synthetic data sets to bolster limited real-world data. This can lead to better approval rates for customers while minimizing risk for issuers.
What this means for issuers: To cost-effectively access these technologies, issuers should look to strike partnerships with providers. For example, they can partner with players like Mastercard for open banking, Marqeta for modern card issuing, or OpenAI for genAI.
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