The Nilson Report

THE CURRENT ISSUE: Issue 1172 | Mar 2020

Today's Download: The Current Issue

Companies featured in this issue include:

Latin America Purchase Transactions and Market Shares in 2019

Latin America Market Shares of Purchase Volume by Brand 2019

Market Shares of Purchase Transactions in Latin America 2000–2019

Latin America General Purpose Cards 2019

Second 50 Largest Mastercard & Visa Credit Card Issuers in the U.S.—Ranked by Outstandings 2019

Second 50 Largest Mastercard & Visa Credit Card Issuers in the U.S.—Ranked by Outstandings 2019

On pages 10 and 11 are the 51st – 100th largest Mastercard & Visa credit card issuers in the United States ranked by outstanding receivables at year-end 2019.

51. Comdata, Tennessee
$413.4 million outstandings, +27.3%
52. Zions Bancorporation, Utah
$413.0 million outstandings, -1.6%
53. Security Service FCU, Texas
$402.0 million outstandings, -0.6%
54. First Tech FCU, Oregon, California
$378.4 million outstandings, +1.5%
55. Virginia CU, Virginia
$350.0 million outstandings, +0.9%

Full access to the Second 50 Largest Mastercard & Visa Credit Card Issuers in the U.S.—Ranked by Outstandings in 2019 is available when you subscribe to The Nilson Report.



Two of the ten largest U.S. Visa/Mastercard credit card issuers as well as OCBC in Singapore and Isbank in Turkey use conversational artificial intelligence (AI) technology from Clinc, a University of Michigan spinoff, to respond to account questions from their cardholders. 

The technology integration to a card issuer’s API adds virtual assistant capabilities that can support balance inquiries, rewards, transaction histories, dispute management, analytics, and other value-added services, most often via a mobile app. Voice digital assistance is a button in the app. 

However, the Clinc bot is capable of much more, which is the main reason Visa formed a partnership with the company in December 2019. Core to Clinc’s AI is the ability to parse paragraph-long questions, what the company calls “unstructured queries.” This flexibility in conversation leads to increased usage by consumers.

The company says its virtual assistant is capable of conversations in 80 languages, and can maintain a 95% containment rate, minimizing handoffs to human staff. 

The integration of Clinc’s technology into Visa’s API allows for banks to deploy an AI bot in three weeks versus up to two years for in-house development. The technology will be available to challenger banks and smaller traditional banks. Clinc is hosted in Amazon Web Services’ cloud.

While it is most frequently implemented through mobile apps, Clinc machine learning and AI models can also support conversations via social media, like WeChat, and at-home devices like Amazon’s Alexa or Google’s Home. It can also be accessed with a chat button on a website.

In addition to serving card issuers, Clinc can also handle free-form conversations that facilitate personal financial management decisions. The technology was created to support digital banking. 

Visa expects its customers will use Clinc for more than card-related customer service. The Visa collaboration opens Clinc to more than 12,000 banks worldwide. The first 2 Visa customers to use Clinc will be live in the second quarter. Clinc hopes to have 10 by year-end 2020. 

Clinc, which operates on a recurring revenue, software-as-a-service model, raised $53 million in a 2019 Series B funding round led by Insight Partners. 

Existing Clinc partners also include computer hardware company Nvidia and auto manufacturer Ford. 

Other web-based providers of conversational AI services are Google, Microsoft, IBM, and Amazon. 

The start-up pioneers in the conversational AI industry wrote code that was meant to approximate a real conversation. 

Clinc’s approach to delivering conversations asks real questions of actual users while the system is in the development phase, which better prepares the model for implementation. This increases the likelihood of an entirely digital AI session for the consumer, maximizing the value to the bank. Himi Khan is Head of Business Development at Clinc in Ann Arbor, Michigan,, Melissa McSherry is Senior VP 

and Global Head of Credit Data at Visa in San Francisco, California,,

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