AI & Banking & Finance
SIA set up to handle 10,000 queries per second: 864 million a day.
Response Time to Customers reduced by 60% and Accuracy increased by 100%
Data Entry Time reduced to 2-3 minutes from the earlier 15 minutes.
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Banking & Artificial Intelligence
Personalised experience and services are the key to success for Banking Sector, today. While the sector is facing huge challenge of Big Data; Artificial Intelligence and Machine Learning are already being implemented across the banking sector. Rudimentary applications like chatbots for customer services, personalised services and AI robots for self-service are currently deployed. Beyond these basic applications, banks can implement the technology for bringing in more efficiency to their back-office and even reduce fraud and security risks.
According to Accenture Vision report 83% of Indian Bankers believe that AI will work alongside humans for next 2 years; higher than global average of 79%. The report also said “93% bankers in India said they increasingly use 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”
Why Artificial Intelligence cannot be ignored
- AI is not new in India. With enabling technologies becoming more available and affordable, AI is now becoming mainstream. $1 Trillion is likely to be added to Indian Economy in 2035, just by AI.
- AI & ML application to different functions of banking has enabled the latter to offer far more personalised and efficient customer services.
- AI & ML in data analytics and customer services are bringing a paradigm shift. They are enabling faster and better customer experiences, significantly better insights and automation of back end workflows.
- Other advantages are: Fraud Detection, Risk Management, Security, Wealth Management for Masses and ATMs Fraud Detection.
Challenges
- Lack of credible and quality data to India’s diverse language set is one major challenge that AI & ML have to overcome. Accenture’s Ravi Aurora says, “Key challenge is the availability of the right data. Data is the lifeblood of AI, and any vulnerability arising from unverified information is a serious concern for businesses. Imagine for example, the risks that could arise from KYC compliance AI systems if the data sources are incorrect. Or consider the efficacy of a fraud detection AI system without the right kind of data. Structured mechanisms for collecting, validating, standardizing, correlating, archiving and distributing AI relevant data is crucial.”
- Data Privacy is another challenge. As European regulation – GDPR (General Data Protection Regulation), banks in India will have to build AI systems with similar privacy regulations in mind.
- The biggest challenge is scarcity of trained human resources. The existing workforce is not familiar with latest tools and applications.
Artificial Intelligence | Near Real Time Feedback
The largest Indian public sector bank with customer base of 420 million has embarked on AI journey from customer's and employee's point of view. The solution the bank recently deployed is capturing facial expressions of the customers at each branch. The facial expressions are then analysed by the AI – face recognition application to determine whether the customer is happy or not. This is near real time feedback to the bank.
Artificial Intelligence is helping banks in the following:
- Answering FAQs.
- Financial Transactions.
- Help customer discover new features like setting up ATM PIN.
Non-availability of people with right data science skills is a major hurdle. AI technology would make the current banking staff redundant for the sector. This leaves the banks with no choice as adoption of AI technology is imperative to survive and the relevant staff is scarce. Hence the banks need to reskill their existing workforce by providing them training programs on Artificial Intelligence and Data Science Skills.
Advantages of an upskilled Workforce
- The upskilled workforce will be easily able to identify the right cases for implementation of the AI tool, in line with the business objective.
- They enable improving banks productivity and efficiency.