Pegasystems launches AI-enhanced solution for bank disputes

Pegasystems has unveiled new generative AI and automation solutions to assist banks in expediting the resolution of payment exceptions, disputes, investigations, and claims with the latest upgrades to Pega Smart Dispute.

Pega Smart Dispute addresses banks' increasing difficulties as they face a significant surge in chargeback requests, which are both costly and time-consuming to process.

Data from research firm Datos Insights highlights that customers in the United States alone disputed USD $11 billion worth of charges last year, with a projected increase of 40% by 2026.

The growth of alternative payment methods, such as mobile wallets, peer-to-peer payments, buy now pay later (BNPL), and real or near-real time payment systems, further complicates the landscape for banks, which must also manage evolving chargeback policies across various systems.

The new Pega Smart Dispute Enterprise Edition is equipped with generative AI and expanded automation features, enabling banks to efficiently handle a comprehensive array of payment types through a single platform.

The solution is designed for rapid processing of complex disputes and claims using natural language prompts, allowing for the seamless introduction of emerging or niche payment types.

Pegasystems utilises its two decades of chargeback expertise and generative AI to automate new payment workflows, supporting established payment types such as Visa, Mastercard, and American Express, alongside newer alternatives like Zelle.

Steve Morgan, Global Banking Industry Lead at Pegasystems, commented: "With the rapid growth in chargeback disputes, banks must be increasingly quick and nimble to keep up with customer demands."

"By infusing new powerful gen AI and automation capabilities across our market-leading payment dispute solution, Pega is helping banks increase efficiency and bring faster resolutions to customers."

The updated Pega Smart Dispute introduces several AI agents aimed at enhancing automation and guidance throughout the dispute process. Features include the Pega GenAI Coach, which offers continuous mentoring to employees, and Pega Knowledge Buddy, which provides swift and precise responses to dispute-related inquiries using Retrieval Augmented Generation-based generative AI. Other AI-supported functionalities include the capacity to generate instant summaries of customer interactions via Pega Voice AI, as well as immediate summaries of client claims and dispute histories with Pega GenAI.

Further enhancements to the software's architecture permit accelerated deployment and improved flexibility, as well as streamlined adaptability for introducing new payment types.

A refreshed user interface promises a more responsive, accessible experience, aimed at expediting customer dispute and fraud processing.

Pega Smart Dispute Enterprise Edition also improves integrations with Pega's DX API capabilities to facilitate the extension of chargeback request functions to various channels, including mobile, web, phone, and chat services.

Additionally, the integration with Pega Customer Service allows agents to employ Pega's customer service tools for seamless delivery of additional services related to disputes and fraud.

Pega has announced its commitment to providing timely updates to maintain compliance with the latest standards of major credit card providers, including Visa, American Express, and Mastercard.