AI adoption in the Banking sector

AI is now being used to considerably increase top line revenue in addition to influencing bottom line revenue. Large Fintech firms, NBFCs, and banks are utilizing AI throughout the customer life cycle, from acquisition to servicing.

The utilization of chatbots in credit decision-making, customer interactions for sales and marketing, and collections were formerly the most prominent application of AI in the Indian banking sector.

To be relevant and nimble in a highly competitive market, banks must leverage technology, but most importantly, they must provide clients with excellent service. This will necessitate a thorough change of the bank’s business and technological levels. For instance, payments used to be primarily made in cash. Today, though, they are device-driven.

Historically, banks have been slow to integrate AI into their operations. Today, AI is primarily utilized for risk management and fraud detection. Most banks are still in the process of expanding AI across their entire organization from limited use cases. Some causes go back in time and may be related to antiquated legacy systems, data silos, a disjointed and haphazard AI strategy, or dated operational paradigms.

“In India, with account aggregator and open credit enablement network becoming mainstream, leveraging AI will become table stakes to differentiate” Rishi Aurora, Senior Partner & FSS Sector Leader, IBM Consulting, South Asia opined.