Sarcouncil Journal of Engineering and Computer Sciences

Abstract: AI-powered wallet analytics is transforming financial services by converting transaction data into personalized customer experiences. This technology analyzes spending patterns in real-time, categorizing behaviors and identifying trends to design tailored financial products and services. Financial institutions leverage these insights to create dynamic loyalty programs, adjust credit offerings, and provide customized financial guidance based on actual customer spending habits. Beyond personalization, wallet analytics enhances fraud detection through behavioral baselines that identify anomalies while maintaining positive customer experiences. The technology continues to evolve toward sophisticated applications like dynamic pricing models and alternative credit assessment methodologies, despite facing significant regulatory and ethical challenges. By treating transaction data as a strategic asset rather than an operational necessity, financial institutions can develop stronger customer relationships in an increasingly competitive marketplace.