Tuesday, September 17, 2019

Artificial Intelligence in Indian banking: Challenges and Opportunities

Artificial Intelligence in Indian banking Segment

Artificial Intelligence is speeding up as the latest technology for companies all across the globe to distinguish understanding for the individuals. Artificial Intelligence goes much beyond chat bots and banks in India need to consider adopting this technology. The technology has been making amazing progress each day enabling businesses inaccepting the Artificial Intelligence for most of the numerous applications. Banking segment has been making headway in Artificial Intelligence and has been exploring and implementing this technology in numerous ways. The basic application that Artificial Intelligence comprises of is bringing in smart chat bots to support the customers, initialling services for the customers as well as having a robot for self service at the banks. Banks can utilise Artificial Intelligence in Indian banking to bringing in additional efficiency in their system of operation, thereby reducing security risks and fraud that occur in the banks.

AI function with Humans – Future

Research firms seem to be confident of Artificial Intelligence in Indian banking sector. According to the report of Fintech India by PwC in the year 2017, worldwide expenses on AI applications had reached $5.1 billion, an increase from $4 in 2015. Interest is being diverted towards the banking sectors too.

As per the latest Accenture Banking Technology Vision 2018 report it is said that about 83% of the bankers in India are of the opinion that Artificial Intelligence in Indian banking would be functioning together with humans in the years ahead which is on the higher side than the 79% average of the world.

According to a report, “93% bankers in India stated that they utilise data to drive critical and automated decision-making. More partner-supplied customer data means a higher degree of responsibility for banks. Yet 77% Indian bankers agree that most firms are not prepared to confront impending waves of corrupted insights from falsified data”

Artificial Intelligence in Indian banking- Enhance Economy

Rishi Aurora, managing director, financial services of Accenture commented that “Artificial Intelligence in India is not something new. For ages the universities and research institutions have been functioning in the capacity of social transformation. With the assistance of technologies, it has now become accessible and economical.

Huge businesses and start-upsnow perceive various opportunities since Artificial Intelligence has now become conventional. According to study, it has been shown that with the implementation of this technology, Artificial Intelligence in Indian banking has the capabilities of enhancing the billion to almost $1 trillion to the economy in India towards 2035. Implementation of Artificial Intelligence is presently at its developing level with plenty of hard work to be put for its total accomplishment.

According to Darshan Shah, MD, South Asia, LenddoEFL, a Singapore-based fintech company, stated that with the application of Artificial Intelligence and machine learning to the various segments in the banking sector, it has supported them in providing a much more personalised as well as efficient services to their customers. Through this, banks now have the potentials of comprehending the preferences and expectations of their customers.

Robots – Service of Customers

Consequently, there is an improved result in computerization of back-end workflows. Over 36% of huge financial institutions, as per several industry reports have been investing in these technologies and almost 70% have plans for the same in the near future. Last year, State Bank of India, which is one of the largest banks in India, had conducted `Code for Bank’ hackathon.

This was with the intention of motivating developers in buildingresult leveraging innovative technologies like Artificial Intelligence in Indian banking together with Blockchain in the banking segment. The other banks in the private sectors such as HDFC Bank and ICICI Bank have gone ahead in introducing chat-bots in servicing their customers. Some have also moved ahead in placing robots for the service of their customers. Canara Bank had installed Mitra and Candi robots, last year at some of their places of work.

Personal Payment Experience

Varun Rathi, cofounder and COO, Happay, which is a Bangalore based start-up, targeting digital payment solutions commented that, `Artificial Intelligence are being utilised by disbursement companies to provide personalised payment experience to the consumers. With the use of AI and scrutinizing payment history patterns, the system of payment can prompt the desired payment instrument suitable for purchase at checkout.

These personalised consumer experiences tend to increase expenditure thereby creating stickiness to product, consumers tend to utilise. Chief architect, of Pune based Persistent Systems, corporate CTO; Abhay Pendsehas conveyed some of the common usages of Artificial Intelligence in Indian banking:

  • Detection of Fraud – irregularity exposure can be done in increasing the accuracy of credit card, scam detection together with anti-money laundering.
  • Helpdesk & Customer Service – Interfaces of Humanoid Chatbot could be utilised in enhancing efficiency thereby decreasing charges for customer interactions.
  • Risk Management –Personalised products could be provided to consumers by scrutinizing their data perform risk analysis and eradicating errors.
  • Security –unauthentic emails, suspicious behaviour, logs analysis can be traced to avoid securitybreaks
  • Digitization & automation – back office processing – Using document data with the help of OCR and thereafter utilising machine learning or AI in creation of perceptions from data text would assist in bring down the processing time in back office.
  • Wealth management for multitudes – Tailored folders could be done by Bot Advisors for customers taking in consideration lifestyle of account, appetite for risk, likely returns on investment etc.
  • ATMs – to detect and prevent crimes and frauds, image or face recognition could be utilised for real time camera images and enhanced AI techniques like deep learning to be used at ATMs.