AI Scripting Applications Within Financial Technology

After the dramatic expansion of Artificial Intelligence in the past five years emerging from the ending of the COVID-19 pandemic, financial technology has become one of the most prominent sectors to be overhauled by the introduction of AI scripting technology. There are two main categories of how FinTech has been impacted by the introduction of AI: Anti-Money Laundering (AML) and Payment Processing.      

AI in Anti-Money Laundering (AML)

1. Intelligent Transaction Monitoring

• AI scripting allows continuous and adaptive monitoring of vast transaction volumes.
• Improvement: Detects complex or hidden patterns that rule-based systems might miss (e.g., layering or smurfing activities).

2. Risk Scoring and Customer Due Diligence (CDD)

• AI generates dynamic risk profiles for customers using multiple data sources—KYC data, transaction history, and even online behavior.
• Benefit: More accurate risk assessments and fewer false positives.

3. Natural Language Processing (NLP) for Adverse Media Screening

• AI reads and interprets unstructured text (e.g., news, sanctions lists) to flag entities associated with illicit activity.
• Result: Broader and more effective surveillance compared to keyword-based systems.

4. Suspicious Activity Report (SAR) Automation

• AI scripts assist in compiling and even drafting SARs based on detected anomalies.
• Outcome: Faster compliance and reduced regulatory burden
  
  

AI in Payment Processing

1. Real-time Fraud Detection vs Delays

• How it works: AI scripts analyze transaction patterns in real time using machine learning models trained on historical data.
• Impact: Suspicious transactions (e.g., unusual location or volume) are flagged instantly, reducing fraud losses.

2. Personalized Payment Experiences vs Generalized User Experience

• AI scripting enables dynamic pricing, intelligent payment routing, and personalized offers based on user behavior.
• Result: Higher conversion rates and customer satisfaction.

3. Process Automation vs Manual Inputs

• AI automates repetitive tasks like invoice processing, payment reconciliation, and customer service (via chatbots).
• Efficiency gain: Reduces manual workload, speeds up operations, and minimizes human error.

Below are some of the top Israeli companies that our Mission has had the chance to work with:

Anti-Money Laundering Companies:

1. ThetaRay – This company develops Cognitive AI Financial Crime Compliance software. The program does three main things: 1. Transaction monitoring, 2. Customer Screening, 3. Customer Risk Assessment. The revolutionary element of this company of course stems from its generative AI integration. So, what is cognitive AI? Cognitive AI (Artificial Intelligence) represents a transformative approach to computing, aiming to emulate human-like thinking processes; it can perceive, reason, learn and interact with the environment in a manner similar to humans. Unlike traditional AI, which focuses on narrow tasks, Cognitive AI seeks to emulate the depth and flexibility of human cognition, enabling machines to perform tasks with greater adaptability, and contextual awareness. HERE is a story about how the company achieved a successful deployment with Santander Bank, a Tier 1 financial institution.
   
   
2. CitrusX – Their software Validates and Mitigates AI Risk at Scale. The company specializes with working with large financial institutions and conglomerates, to ensure that the AI technology those companies leverage has far fewer hallucinations. It ensures validation, explainability, and monitoring for fast, accurate AI deployment, minimizing risks and meeting regulatory standards. The company’s software can Identify Hidden Risks, comply with new regulatory legislation in real time, and Optimizes New Model Approval Processes for their customer’s in-house tools.

Payment Processing Companies:

• BlueSnap – is the only Global Payment Orchestration Platform that simplifies payments, while helping clients to reduce costs and increase sales. There are three pillars to the implementation of BlueSnap’s technology. 1. Global Payments, 2. Embedded Payments,
  3. Invoice and Billing Overhaul. Global payments are complicated. 31% of companies that sell internationally use 4 or more solutions to meet their global payment needs. This leads to a number of challenges, including low authorization rates, checkout abandonment, compliance challenges, technical debt and more. BlueSnap’s Global Payment Orchestration Platform reduces the complexity and delivers a better return on investment by reducing costs and improving authorization rates no matter where companies’ sell. Current successful integrations include clients like BigCommerce and HubSpot.
  
  
• Datarails – is a financial planning and analysis (FP&A) platform designed to automate and enhance the financial processes of small and medium-sized businesses. It allows finance teams to continue using their familiar Excel spreadsheets and financial models while integrating automation and AI capabilities to streamline tasks such as data consolidation, reporting, and planning. Integrated with over two hundred platforms, key features include: Excel Integration, automation of manual processes, AI-Powered data insights, collaboration tools, Customizable Dashboards, and Advanced Reporting that goes beyond the status-quo.

Contact Sydney@israeltrade.gov.il to connect with the above Israeli companies.