FEATURE
Rising consumer demand from younger, mobile-first populations further reinforces adoption.
AI-powered‘ next best action’ engines process transaction histories, spending behavior and life events to identify the optimal moment to introduce new products.
These systems enable targeted offers for cards, savings, insurance or credit upgrades – improving relevance while reducing marketing waste.
According to the report, banks deploying these tools have achieved conversion rate increases of around 25 % compared with traditional blanket promotions.
Executives interviewed for the study note that this shift marks a turning point. AI-driven personalization is no longer viewed purely as a customer experience enhancement but as a core revenue engine.
By anticipating needs rather than reacting to them, institutions can deepen loyalty and increase lifetime value in markets where switching costs are low.
These platforms combine behavioral biometrics, geolocation data and anomaly detection to distinguish legitimate transactions from suspicious activity with greater precision than rules-based systems.
The impact extends beyond loss reduction. By minimizing false declines, AI-enabled fraud controls allow more valid transactions to proceed, directly boosting payment volumes and customer satisfaction.
In this context, fraud prevention has evolved from a defensive cost center into a growth enabler, reinforcing trust and encouraging greater usage of digital channels.
While the business case for AI is increasingly clear, the report underscores that scaling these capabilities across Latin America presents unique challenges.
Success depends as much on enabling conditions as on algorithms and several structural factors support momentum.
Where AI is driving revenue in Latin America
Financial institutions across Latin America are focusing on a small number of AI capabilities that are delivering measurable commercial returns.
Key revenue-linked use cases include:
• AI-driven credit decisioning using alternative data to extend lending to thin-file and first-time borrowers
• Fraud prevention in digital payments, reducing losses while enabling higher transaction volumes
• Hyper-personalized cross-selling, using customer analytics to improve conversion rates and loyalty
Payments digitization initiatives have accelerated digital access, while open finance frameworks, particularly in Brazil, are expanding consentdriven data sharing.
At the same time, the fintech ecosystem has grown rapidly, increasing both competitive pressure and partnership opportunities that push incumbents to modernize.
Rising consumer demand from younger, mobilefirst populations further reinforces adoption.
However, significant bottlenecks remain. Infrastructure gaps, including limited broadband
Rather than broad experimentation, success is coming from targeted deployment aligned to clear business outcomes.
Fraud prevention represents the third major revenue-linked application. Latin America’ s rapid migration to digital payments has been accompanied by a surge in fraud, with the region accounting for roughly 20 % of global e-commerce revenue lost to fraudulent activity.
Card-not-present fraud and authorized push payment scams have risen sharply, eroding consumer trust and increasing costs for providers.
To address this, banks and fintechs are deploying AI-driven fraud detection systems that operate in real time.
26
INTELLIGENT CIO LATAM www. intelligentcio. com