Artificial Intelligence crashed onto Earth in 2023 with an equivalent force of a humongous Meteor from outer space. The technological aftermath has impacted every industry from healthcare to banking and financial services. Adaptive use of AI is especially being found to streamline and transform the delivery of banking services to customers across wide demographics.
The strategic applications of AI in banking through machine learning (ML), natural language processing (NLP) and robotic process automation (RPA) are witnessed globally. As per Accenture reports, Indian banks can serve more customers simultaneously through a significant increase in transactions and digital interactions deploying the use of artificial intelligence in banking services. Let’s dive into how your favourite Indian banks are integrating AI and what critical transitions we can expect in the near future.
Golden Opportunities for the Adaptive Use of Artificial Intelligence in Banking Services
In the latest report by McKinsey, it was revealed how the potential of AI applications in banking and finance would steadily grow to a $1 Trillion economy. Top analysts from Cambridge have also pointed towards the clarity of how the success of AI applications in banking depends upon colossal data, and banks already have them securely stored in their arsenal.
Slow adaptation of ML technology in banking was already witnessed by top payment companies before 2023 for the detection & prevention of fraudulent transactions.
But here is an insightful list of applied segments which Indian banks are already encashing upon as part of their early-phase AI adoption:
Global Examples of Artificial Intelligence in Banking
Capital One (Virginia)
Eno, an AI-powered virtual assistant that consumers can connect with through a mobile app, text message, email, and on a PC, was released by the bank. Eno handles operations including paying credit cards, maintaining account balances, examining available credit, and verifying transactions. This is among the fine examples of artificial intelligence in banking that enables users to text questions and receive fraud alerts.
Ally Financial(Michigan)
A chatbot powered by machine learning is used by the bank's mobile platform to help customers with inquiries, transfers, and payments as well as to provide payment summaries. Users may simply speak or text with the chatbot to take care of their banking needs.
HSBC (Hong Kong)
The PayMe app was released by HSBC in Hong Kong with the goal of revolutionizing mobile payments. The largest problem for the bank, however, was rethinking and modernizing payment operations using outdated technology.
However, the bank securely distributed anonymised production data in real-time to the data science teams using Azure Databricks and Delta Lake. Additionally, PayMe assisted the bank in centralizing every step of its analytics procedure.
How State Bank of India(SBI) is using AI?
SBI proudly claimed in its annual report (June’23) that it has deployed revolutionary technologies like artificial intelligence (AI), machine learning (ML), and business analytics to expand its product offerings and improve customer satisfaction.
The top public sector bank in India is also committed to implementing the NextGen Data Warehouse in addition to Data Lake and investigating fresh collaborations with fintechs and NBFCs for co-lending. The next version of YONO app from SBI will prioritize customer-centric design, hyper-personalized experiences, and innovative product offerings through the utilization of AI/ML.
ILA, the Interactive Live Assistant for SBI Cards, can give you the most relevant details on goods and services. To learn about Card features, advantages, services, and much more, anyone can chat effortlessly with ILA. The adoption of this Generative Conversational AI system has also assisted them in generating over 130,000 leads to date, increasing top-line income by thousands of dollars.
What is the use of AI in HDFC Bank?
In terms of market capitalization, HDFC Bank is the largest bank in India and the fourth-largest bank worldwide. HDFC Bank has been vocal and positive about incorporating Artificial Intelligence in diverse banking services, here are some ways they have already implemented the use of AI in banking services:
Conclusive Note
The use of artificial intelligence in banking is expected to drastically change India’s banking and financial services sector. It presents several chances to improve customer satisfaction, boost operational effectiveness, control hazards, and stimulate innovation.
Another vital aspect of embedding AI in the banking sector is educating staff members and raising public knowledge of the new technology. With the visible efforts and enthusiasm from Indian Banks, we can be hopeful to witness an AI-powered dynamic ecosystem to transform service structure and delivery.Visit adneto.in to further learn about how we can help banks & brands in tandem.