ServiceNow announces five-year strategic alliance with Visa to transform payment services
- Strategic alliance with Visa to transform payment services
- Launch of ServiceNow Disputes Management, Built with Visa
- Includes low-code, AI, and generative AI capabilities
- Aims to boost efficiency and productivity
- Addresses the complexity and delays in managing disputes
- None.
Insights
The strategic alliance between ServiceNow and Visa to launch ServiceNow Disputes Management, Built with Visa, represents a significant move in the financial technology space. By integrating Visa's robust anti-fraud capabilities with ServiceNow's AI-driven workflow platform, this partnership is poised to streamline the dispute resolution process for financial institutions. This could potentially lead to reduced operational costs, enhanced customer satisfaction and improved efficiency in handling payment disputes.
From a financial perspective, the collaboration could open new revenue streams for both companies and strengthen their competitive positions in the payment processing market. Investors should monitor the adoption rate of the new platform as it could be a bellwether for the alliance's success. Furthermore, the emphasis on low-code and generative AI capabilities may signal a broader industry move towards more agile and adaptive financial technologies.
Long-term implications include the potential reshaping of the dispute management landscape. If successful, this alliance could set a new industry standard, prompting other payment processors and financial service providers to innovate similarly. The ramifications for the stock market could include an uptick in investor interest in companies that are quick to adopt and integrate such advanced solutions.
ServiceNow and Visa's partnership taps into a critical need for modernized dispute management systems within financial institutions. A Forrester Research quote underscores the importance of customer experience (CX) and swift problem resolution in banking. The introduction of ServiceNow Disputes Management, Built with Visa, is likely to be well-received by financial institutions seeking to enhance their CX and retain customers.
Market research shows that customer retention is significantly cheaper than customer acquisition and effective dispute resolution is a key factor in retention. The ability of this solution to integrate ongoing changes to dispute rules and apply industry best practices could give early adopters an edge in customer loyalty and potentially increase their market share. Additionally, the solution's generative AI-powered experiences are likely to be a focal point for institutions looking to leverage technology for better service delivery.
As the financial industry continues to evolve, the demand for such innovative solutions is expected to grow. Market analysts should keep an eye on how this product influences customer satisfaction scores and operational efficiencies, as these metrics will be critical indicators of the product's market impact.
The integration of Visa's fraud prevention technologies with ServiceNow's AI-first platform is a notable advancement in the payments ecosystem. Visa's efforts to prevent $30 billion in fraud annually using AI and tokenization demonstrate the company's commitment to security, which is a paramount concern in digital payments. The use of generative AI to improve customer intake and agent investigation processes represents a cutting-edge application of AI in fintech.
For technology stakeholders, the introduction of a low-code platform for dispute management is particularly significant. It indicates a shift towards empowering institutions with tools to rapidly adapt their processes, a necessity in the fast-paced financial sector. The capability to swiftly update dispute management processes could result in a reduction in time-to-market for new features and adjustments in response to emerging fraud trends.
Furthermore, the ongoing updates to dispute rules and the application of industry best practices suggest a commitment to continuous improvement and adaptability, which are crucial in the ever-evolving landscape of cyber threats. Technology analysts will be keen to observe how the implementation of this platform affects the broader fintech ecosystem, particularly in terms of security and compliance with evolving regulations.
Initial phase includes the launch of a single, connected solution for disputes resolution, called ServiceNow Disputes Management, Built with Visa
New solution includes low-code, AI, and generative AI capabilities to help boost efficiency and productivity
ServiceNow announces five-year strategic alliance with Visa (Graphic: Business Wire)
Managing disputes currently involves multiple systems and teams, and many financial institutions often use siloed solutions that are not fully integrated with one another. This disconnected approach creates complexity, delays crediting and resolving disputes, can create potential losses, and ultimately, impacts the customer experience. ServiceNow Disputes Management, Built with Visa is a streamlined solution that blends the best of ServiceNow’s AI-first platform and the company’s Financial Services Operations solution with Visa’s deep technology investments. Each year, Visa helps prevent
“At the heart of our alliance is a commitment to build industry-leading products that help financial institutions boost employee productivity, create great customer experiences, and drive business growth,” said John Ball, senior vice president and general manager, customer and industry workflows, ServiceNow. “By making Visa’s services available through ServiceNow’s intelligent, AI-first platform, we’re powering innovation and setting a new standard in the payments industry.”
“Solving customer pain points is core to our business at Visa, and collaborating with an industry leader like ServiceNow will allow us to help issuer partners resolve disputes more efficiently,” said Vanessa Colella, global head of innovation and digital partnerships, Visa. “ServiceNow and Visa look forward to offering clients the latest technology solutions, so they can focus on delivering an excellent experience for their customers.”
ServiceNow Disputes Management, Built with Visa will unite the entire dispute management process – from the first indication that a charge is questionable to early resolution, investigation, and final resolution. It includes a single experience for solving disputes so that employees can have high quality engagements with cardholders, as well as dashboards, automation, alerts, and the ability to audit all transactions.
Two standout features enhance its efficiency: a modern, user-friendly low code platform that allows financial institutions to make swift updates to their disputes management process, and generative AI-powered experiences that improve customer intake and agent investigation. The solution also incorporates ongoing changes to disputes rules and applies industry best practices for processes, workflows, and staying ahead of fraud.
“Banks should prioritize their CX efforts around the drivers that most influence customer loyalty. For example, resolving problems and issues quickly remains one of the most important drivers of CX and retention for many banks,” wrote Alyson Clarke, principal analyst at Forrester Research. “Banks that adopt modern and flexible digital banking processing platforms will find it easier and faster to deliver innovative (and profitable) customer solutions.”1
ServiceNow is committed to revolutionizing financial services with new products and services. This initial integration marks the beginning of a more extensive, multi-phased relationship between Visa and ServiceNow. The companies will continue to build new solutions and will distribute Visa products and services to joint customers. Together, ServiceNow and Visa will help clients improve dispute management.
1Forrester, Consumer Banking Trends, 2024: Trends Shaping Retail Consumer Banking In The Current Economic Climate, Jan 17, 2024
Availability
ServiceNow Disputes Management, Built with Visa will be available in early 2024.
Use of Forward-Looking Statements
This press release contains “forward‑looking statements” about the expectations, beliefs, plans, and intentions relating to ServiceNow’s strategic alliance with Visa to launch ServiceNow Disputes Management, Built with Visa. Such statements include statements regarding future product capabilities and offerings and expected benefits to ServiceNow. Forward‑looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward‑looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, ServiceNow’s results could differ materially from the results expressed or implied by the forward‑looking statements made. ServiceNow undertakes no obligation, and does not intend, to update the forward‑looking statements. Factors that may cause actual results to differ materially from those in any forward‑looking statements include: (i) delays and unexpected difficulties and expenses in executing the strategic alliance or delivering the product capabilities and offerings, (ii) changes in the regulatory landscape and (iii) uncertainty as to whether sales will justify the investments in the product capabilities and offerings. Further information on factors that could affect ServiceNow’s financial and other results is included in the filings ServiceNow makes with the Securities and Exchange Commission from time to time.
About ServiceNow
ServiceNow (NYSE: NOW) makes the world work better for everyone. Our cloud‑based platform and solutions help digitize and unify organizations so that they can find smarter, faster, better ways to make work flow. So employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNowTM. For more information, visit: www.servicenow.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240124348406/en/
Theresa Ianni
ServiceNow Public Relations
216.544.6817
press@servicenow.com
Source: ServiceNow
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