Amity Institute Of Training & Development

How Artificial Intelligence is Impacting the Banking Sector

AI is probably the most important thing humanity has ever worked on." Google CEO Sundar Pichai

This statement from Google CEO has become quite relevant in the Indian banking industry, especially after demonetisation. With an average Indian consumer getting at ease with online banking, making internal operations efficient and the customer experience more effective has certainly become a new normal in modern banking. COVID 19 had triggered online banking the push it was looking for and had accelerated the use of emerging technologies like AI at full throttle. Improving data quality and expanding reach are some of the other critical factors giving more impetus to AI in banking of today. About 32% of financial service providers are already using AI technologies like predictive analytics, voice recognition among others, according to joint research conducted by the National Business Research Institute and Narrative Science.

It is clearly evident that Artificial Intelligence has become one of the critical pillars laying the foundation of future banking in India. Artificial Intelligence is not only leading analytical solution, but also redefining the way customers interact with modern day services provided by the banks. It’s becoming a remedy for challenges faced by banks like customer experience personalization and loyalty building at one hand to security features such as anomaly detection or fraud prevention on the other.

Presently Artificial Intelligence is impacting every area of bank operations, customer relationship management, fraud detection as well as risk management. In order to simplify it further these aspects can be divided into four thrust areas:

- Sales optimization

- Driving business growth

- Streamlining operational processes

- Credit risk management

Source : Benefits resulting from the use of AI in FinTech, Synerise.

Besides these four major areas impacted by Artificial Intelligence, there are some other features such as AI bots, digital payment advisers and biometric fraud detection mechanisms lead to higher quality of services to a wider customer base.

The Future of Artificial Intelligence in the Indian Banking Sector

According to Deloitte, AI will provide the foundation for increased product and service innovation. Further, artificial intelligence has the potential to transform customer experiences and establish entirely new business models in banking. To achieve the highest level of results, there needs to be a collaboration between humans and machines that will require training and a reassessment of the future of work in banking. Also, mass customisation is the key to unlocking significant opportunities in the future and can be tapped only through technologies like AI and blockchain.

It is imperative that the bank employees are upskilled to understand AI at a broader level and are adept in leveraging the benefits of Artificial Intelligence which will help them to serve their customers better. To help banks, bridge this knowledge gap, AITD in partnership with industry leaders have been developing cutting edge research-based programs which are easy to deploy in both virtual and physical environment.

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Written By: Mr. Ashish Sahu

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