Artificial Intelligence in Indian banking Industry: Experiments and new openings
Artificial Intelligence (AI) is firm developing as the go-to technology for companies across the world to distinguish experience for customers. The technology is feat improved and smarter day by day, allowing more and newer industries to adopt the AI for several applications. Banking sector is attractive one of the first takers of AI. And just like other segments, banks are exploring and implementing the technology in many ways. The basic applications AI include bring smarter chat-bots for customer service, initialing services for distinct customers, and even hiring an AI machine for self-service at banks. Beyond these basic uses, banks can instrument the technology for transporting in more proficiency to their back-office and even reduce fraud and security risks. The global expenditure in AI applications touched $5.1 billion, up from $4 billion in 2015. There is a deep interest in the Indian banking sector as well. Emergence of AI banking in India Accenture’s current Accenture Banking Technology Vision 2018 report says, 80% to 84 % of Indian bankers believe that AI will work beside humans in the next two years
“Ninety-three percent bankers in India said they progressively practice data to initiative critical and programmed decision-making. Extra partner-supplied customer data means a higher degree of responsibility for banks. Yet, seventy seven percent of Indian bankers agree that most firms are not ready to challenge approaching surfs of corrupted insights from fabricated data. Indian institutions and universities have been working with various AI technologies for decades, and especially in the area of social revolution. With allowing technologies attractive a lot more available and inexpensive, AI is now becoming main stream, with large enterprises and start-ups looking at different opportunities. Study shows that the acceptance of AI has the prospective to add nearly one trillion USD to the Indian economy in 2035. AI adoption is still in its budding stages, and a lot more needs to be done to understand its full potential. Artificial Intelligence and Machine Language to different functions within the banking industry has enabled them to offer a far more tailored and efficient customer facility. By realizing that, banks have too been able to gain better visions into their customers’ preference and expectations from the bank. Hence, automation of back-end workflows has shown better outcomes. Permitting to several industry reports, more than 30 to 40% of large financial institutions are already investing in such technologies, and close to 70% are scheduling to in the near future. Not just customer support Payment banks are using AI to offer tailored payment experience to customers.
Say a consumer avails EMI option frequently for his big-ticket purchases, and then the best EMI option is made accessible to the consumer at the time of checkout. Such personalized consumer experiences drive up consumer spending and creates stickiness to the product consumers are using.
Fraud Detection: Incongruity detection can be used to increase the accuracy of plastic money fraud recognition and anti-money laundering. Customer Support and Helpdesk: Anthropoid Chatbot interfaces can be used to increase adeptness and cut cost for customer communications.
Risk Management: Tailored products can be offered to clients by looking at historical data, doing risk analysis, and eliminating human errors from hand-crafted models.
GDPR guideline is now applicable to European citizens, but India and other countries have their private data privacy guidelines. Banks in India will have to build AI systems with GDPR and similar privacy guidelines in mind.
One of the key challenges that is tackled by Industry and not just banks in India is unavailability of people with right data science skills. With smaller number of good data scientists accessible to do AI work, the industry needs to work with education institutions in India to develop skilled data scientists as well as improve in-house teaching programs to train workforces on data science skills.
While the notion of Artificial Intelligence has been around for decades, it is only recently that the AI fictional has started to turn into reality. Many of the technology pieces are already in place, although in varying stages of development. What’s left to do is stitch together these components to re-think banking processes and practices. Many banks have made a start by integrating several AI components into their methods and have experienced initial results.
While the technology’s evolution is both rapid and impressive, banks, and indeed, all enterprises, should ground their adoption strategies and expectations in reality. Nevertheless, regardless of initial hiccups and gestation times for expected results, banks should waste no time in executing their AI plans. Because AI is evolving so quickly, it does not allow banks the luxury of waiting till it matures, and those who do, risk never being able to catch up with the leaders. Quick movers have another advantage in that their AI systems will start learning earlier than others, and will therefore change earlier as well.
With AI, the industry will go through a long voyage of reimagining banking, spanning several years, many milestones and at least a few experiments.