The trend of Artificial Intelligence (AI) is growing rapidly in all the sectors of the world including banking. With its help, banks are ahead of many other sectors in taking important business decisions. Today, most of the financial and non-financial services in banks are being materialized with the help of AI, which includes inquiry about account transactions, passbook printing, opening accounts, deposit and withdrawal, loan eligibility, balance sheet and non-performing asset (NPA) account analysis, etc.
AI means artificially developed intellectual capacity, which is equipped with machines. To equip machines with this, 3 processes have to be passed. In the first phase, information is fed into AI and they are taught to follow certain rules. In the second phase, AI is instructed to move forward towards achieving the goal by following the rules made. In the third phase, machines equipped with AI are taught to correct their own mistakes. Machines equipped with AI, like humans, first understand a problem, then decide what would be appropriate to do and finally solve the problem.
Chatbots can be used with the help of AI to improve customer service. Banks plan to use AI-based chatbots so that services can be provided to customers in a more effective and efficient manner according to their needs. Through AI-based chatbots, banks can be able to resolve the problems and complaints of their customers more quickly. Chatbots play an important role in wealth management services, loan underwriting, customer analytics, fraud identification and solving other issues related to banking services.
When any kind of fraud takes place within the banking system, it is not easy to detect it. A clever criminal does not leave any evidence, but a machine equipped with AI can easily catch the fraud. Along with this, with its help it can also be known where and how the process of carrying out fraudulent activities started. Apart from this, transaction security can be done through AI, which will be based on blockchain technology. Through AI, data can be analysed on a large scale, so with its help, strategies can be made to provide better facilities in the interest of customers. With this, attractive deposit and loan products can be developed for the bank.
Currently, more than 114 crore people are using smartphones in our country. With the increase in the number of smartphones, the use of AI in the banking sector is also increasing, because the current smartphones are equipped with AI features. Today, all customers have a bank in their pocket because customers are fulfilling their banking needs through their smartphones. Today, almost all State Bank of India customers have YONO installed in their smartphones, which provides facilities for withdrawal, investment, money transfer, bill payment etc.
State Bank of India had launched an AI-powered chat assistant for its customers, also known as SBI Intelligence Assistant or SIA. It helps in helping customers, preventing and detecting fraud, analysing data, loan management, increasing financial literacy, etc. SIA is improving customer service. Banks’ operating expenses are decreasing, and problems related to banks’ products and services are also getting resolved.
Robots are also being used to perform many tasks in banks, which can do tasks like welcoming customers in the bank, taking them to the right counter, giving information about credit cards and home loans to customers, etc. Etiquette programming is also being done in robots, so that it can welcome customers and help co-workers. It can also talk to a bank employee on the phone and can speak all the languages of the world.
Machines equipped with AI are rapidly spreading their wings in the financial world. Traditionally, experts have had a special place in the financial world. They give their advice about loans, investments, savings, etc., but now with the arrival of start-ups and big companies in these fields, the use of machines equipped with AI has increased. Earlier, the work of giving loans was done with the help of bank officials and underwriters. Now it has been replaced by data-based models. For this, algorithms are being developed, which can take decisions on giving loans based on time and relevance. There is no place for human emotions in it, which eliminates the possibility of corruption and bias and at the same time the loan proposal is analysed accurately. Such algorithms are being used in banks and other financial institutions and fintech start-ups.
AI-enabled machines will help financial institutions in many ways. For example, it will reduce the possibility of fraud and increase the possibility of return or better returns on investment or loan. It is also increasing the speed of execution of tasks. Customer service is improving. Analysis of data has become easier, which has made it possible to serve customers on time. It is also becoming easier to identify fake currency.
Currently, many AI-based funds and smart beta funds are in the market, which are eliminating the role of humans in investment. Since public funds are a sensitive issue, AI does not have much role in it. Generally, humans live with the prejudices of their thoughts and opinions, which leads to mistakes or taking sides.
The goal of machine-based business is to give better returns regularly. Banks and other financial institutions, start-ups etc. in the financial sector are taking interest in it. It can be said that the use of AI in the banking sector will increase further in the coming days and along with it, customer service and other functions of banks will improve.
Satish Singh, Ahmedabad Based Senior Columnist, views are personal
