AI helps the bank to identify the spending habit of the customer. Banks can develop a personalized investment plan and provide budgets to the customers, Banks can remind the customer about the spending and suggest tracking investments based on the data. Transactions and other sources of information can be traced to help understand the customer’s behavior and preferences to enhance their experience. The restricted uses of AI in Indian banking institutions are
• Enable convenient banking services through voice technology, customers can easily ask for account balances, request analysis of their financial position, and ask about their investment portfolio.
• Leveraging Customer Insights Voice applications can employ customer insights to customize and enhance using the FinTech sector with the help of Artificial Intelligence, Machine Learning, and Natural Language Processing.
• Strengthening customer loyalty through digital channels Customer loyalty can be strengthened by financial service providers that employ voice applications towards enhancing customer short and long-term financial well-being.
• Retail banking applications Banks can use voice technology in a way that allows them to offer personalized, tailored banking services to customers so that they can be better off financially and manage their own personal finances.
• Customized financial services will be taken to new frontiers by customized connected automated financial planners and advisors that offer suggestions in making the right financial decisions. They cross-market with the user’s personal portfolio and financial objectives, and offer some advice on stocks and bonds.
• Customer service with the advent of speech processing and natural language processing technologies, when computers were able to deal with the majority of customer service inquiries. This would mark the end of the queue and thus more satisfied consumers.
• Blockchain Serving Instant Payments Banks The digital revolution, especially led by social media and mobile is changing the paradigm in the area of buying behavior and tastes. The need for more choices and more control over the way they are in a position to communicate with the bank is emerging. Delays in payment processes, however, will be a thing of the past due to blockchain as it will introduce the benefit of real-time payment processing, making the payment process quicker, hence improving support and satisfaction.
Current Status of AI in Indian Banking Sector
In India, the big four commercial banks and fintech startups have been trailblazers in adopting AI to enhance their customer experience, reduce costs, and increase overall efficiency. Research institutes and universities have experimented with various AI technologies for a considerable number of decades, and primarily in the area of social change. The application of AI and ML (machine learning) in various activities of the banking industry has assisted them in delivering a much more personalized and systematic customer service. Banks, in the process, are able to gain better insights into customer preference and expectation from the bank. Back-end workflows, as a result, have shown enhanced output through automation. SBI has deployed an AI enabled technologically advanced product of ChapDex. The AI powered solution scans the cameras deployed in bank branches and looks for the mood of the customers. SBI also started using the chatbot Sia developed by Bengaluru and Silicon Valley based firm Pageo. HDFC is also testing ROBOTIC STORE SOLUTIONS IRA – Intelligent Robotic Assistant to enhance customer interactions and revitalize its business space. As expected, research companies are of the view that AI has an interesting future for the banking industry, especially for banks. According to the Fintech India report by PWC in 2017, worldwide spending on AI solutions reached $5.1 billion in 2017 from $4 billion in 2015. Moreover, with the technology curve financial institutions are pursuing a convergence strategy to reap the benefits of artificial intelligence. Indian banks have started adopting various AI solutions such as chatbots, risk management, training, etc.
Conclusion
India is becoming technologically savvy in recent times, making it one of the most important economic growth drivers. Business outcomes are increasingly enhanced through AI as it is becoming the technology of preference globally. The banking industry is proving to be one of the first to adopt AI and implement the technology in its various forms.
The use of AI ranges from smart customer service chat bots to personalization of services for customers and even deploying AI robots for bank self-service. Apart from these fundamental uses, banks can use the technology to improve back-office productivity as well as reduce fraud and security risks. Artificial Intelligence is therefore going to be the sole driver of the competitive standing of Indian banks.
Read Also:
- Artificial Intelligence In Indian Banking Sector: An Overview
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- Study On Artificial Intelligence Applications Uses In Agriculture
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- Indian Banks Using Artificial Intelligence (AI)
- The Potential Of Artificial Intelligence In Finance
