In today’s digital age, technology plays a major role in helping businesses or organizations achieve their goal of providing good services to their customers. AI (Artificial Intelligence) is rapidly transforming global markets. AI technology has been explored in many industries and the banking sector. In recent years in India, AI has found use in banking. Artificial Intelligence is described as the ability of a device to perform cognitive functions that we associate with the human mind, such as perceiving, reasoning, figuring out, interacting with the surroundings, resolving trouble, or even exercising creativity. Artificial Intelligence is carried into banking systems through algorithms with amazing success in custom management services, credit information services, frequently asked questions (FAQ) services, financial assistance services.
Currently, an increase in the overall performance of a banking machine is achieved through implementing A.I. The banking industry is undergoing various reforms, with the focus on the client as the primary driver. Customers who are tech conscious and frequently interact with cutting-edge technologies want banks to provide smooth experiences. To meet these expectations, banks have expanded their industrial landscape to include retail, IT, and telecom through the use of services such as mobile banking, e-banking, and real-time money transfers. Thus, the aim of the paper is to analyze the concept of artificial intelligence and discuss the opportunities of artificial intelligence in the Indian banking sector and also understand the development of artificial intelligence in the Indian banking sector.
Introduction
In today’s digital age, technology plays a major role in helping businesses or organizations achieve their goal of providing good services to their customers. AI (Artificial Intelligence) is rapidly transforming global markets. Artificial Intelligence (AI) is computer-controlled robots to perform tasks that usually require human intelligence and understanding. Artificial intelligence is also used in banking to detect fraud, resolve customer inquiries, monitor customer behavior, and recommend personalized services. Artificial intelligence helps to automate processes, make better decisions, and manage customer requests with less effort. It also helps to manage risk by detecting and preventing fraud and money laundering in real-time. Artificial intelligence can be used in various ways to improve the banking sector.
Poor customer data and segmentation is one of the biggest challenges that banks in India are currently facing. The advent of payment technology companies like Airtel Payments Bank and Paytm Payments Bank, the advent of NEO banks and NEO banking platforms, and the advent of NBFCs have forced banks to work hard and survive in the new paradigm. With the advent of the new era, banks are adopting new technologies to make their services and operations stronger and more comprehensive for customers. Artificial Intelligence is revolutionizing banks end-to-end across all industries from insurance to sales, contracts to security. Banks are adopting analytics, blockchain, and machine learning in a bid to future-proof products and services. Artificial Intelligence in finance and banking is enhancing finance businesses and banks, making them more efficient as well as competitive. Banks apply artificial intelligence to perform a large amount of different things, including blocking fraud, improving customer experience, tracking customer behavior in order to respond to them in a better way, and verifying users’ credit history in products for the measurement of loan risk.
Areas of use of artificial intelligence by banks: One of the most important areas of artificial intelligence application in banking is artificial intelligence chatbot service. Bank AI chatbots can assist customers and give them suitable answers to queries. AI chatbots provide customized experience to users. Thus, banking industry AI chatbots assist banks in customer acquisition, enhance the quality of services, and grow brand power over business. Smart mobile applications have the ability to monitor user activities and harvest sensitive data based on users’ surfing habits. The data enables service providers to make suggestions on a personalized level.
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