How Artificial Intelligence (AI) is Remoulding the Banking Industry
Artificial Intelligence is no more the fancy word it used to be. Utilised only by tech-geeks and people who were ‘into’ digital. The term is becoming more commonplace and perhaps the adoption of AI by the ever so conservative banking industry might speak volumes to support its growing popularity.
“As per a PwC FinTech Trends Report (India) 2017, in the past year, global investment in AI applications touched $5.1 billion, up from $4.0 billion in 2015. While large commercial and investment banks globally are incorporating AI and blockchain for both back-office and customer facing purposes, in India, widespread adoption of these technologies has not yet come to fruition.” (Source – Techemergence)
AI has been viewed as one of the most profitable and exciting ventures in the banking sector of India. This strong incline towards AI is not unfound, AI has huge potential to significantly transform the way people bank and the change is now inevitable. More banks than ever are jumping into the AI spectrum. It’s not hard to see why, with benefits such as cost reduction, time saved and automation resulting in reduced effort.
Another obvious testament to the power of AI is the adaption of chat-bots into the customer-service interface. Most leading banks in India including SBI, HDFC, ICICI and Axis have incorporated chat-bots into their customer service models. It can undoubtedly be stated that banks in India are in competition with each other to develop and adopt more and more AI based applications. A large amount of funds allocated for digital in the industry is being spent on AI and this trend is only expected to grow as more and more banks start to look into indulging AI.
Besides chat-bots, a lot of Indian banks are also experimenting various other types of AI based applications. For example, SBI uses AI powered cameras placed in branches to read the faces of client and judge their moods. This feedback is then used to improve service. And only last year, Canara Bank, another one of our clients, launched their robotic customer care executive named Mitra at their head office in Bangalore. It can answer more than 500 questions in colloquial Kannada.
Adsyndicate also provides various other AI related services apart from chat-bots. We could help you solve a lot of problems you never even knew existed using our expertise in AI. Let us help you just like we’ve helped our other clients which include RBI, UNB, PNB among others.
The banking sector is now catching up with the rest of the world in terms of digitisation. Undoubtedly, the focus of investors and bankers alike are going to shift from human-based applications to revolutionary technologies such as AI. This is motivated not just by the efforts of banks to minimise cost and create a cleaner, sharper and more accurate banking experience, even clients are equally inclined towards machines and robots handling their finances rather than humans. Presumably, the biggest advantage of AI is the omission of human error.
The automation of the banking sector is now becoming inevitable. Additionally, it wouldn’t be wrong to say that since consumers and bankers alike feel safer with automated technologies and robots dealing with their money, any bank that doesn’t adopt AI is sure to bite the dust. The involvements of humans in banking is decreasing, and it’s decreasing fast. People will choose AI based banking over traditional banking as soon as soon as it’s feasible enough and that day doesn’t seem to be too far away. The present seems to love the future, already.
Image Credit: McKinsey
With over 7 years of experience in the Digital domain, Atish has worked with multinational brands in BFSI, B2C and IT sectors. Currently he leads the Digital and Content marketing team at Adsyndicate. An athlete by nature, an avid reader and having a passion for sports, his current interests lies in latest technologies exploring Artificial Intelligence, Blockchain & Hashgraph.