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AI in Banking and Financial institutions


Hari Nair


WeChat is a Chinese social media and mobile payment app, released during the year 2011 - China’s billion-user messaging app

ClearBank, an innovative clearing bank in the UK based entirely on the cloud and offering an open-standards connection API, are showing the way to a future of distributed, hyper-efficient core banking services - Banking as a service!.

AI will make intelligent automation   to do away with competition from FinTech players.  AI will enable banks to leverage  Machine Learning  optimally to drive operational and cost efficiencies.  By adapting AI, Banking sector have already taken actions, unlocking significant opportunities .

Cognitive technology with Artificial Intelligence (AI) brings the advantage of Digitization to Banks.   SBI launched SIA, an AI-powered chat assistant that addresses customer enquiries  with everyday banking tasks.  Eva (Electronic Virtual Assistant) has addressed over 2.7 million customer queries according to HDFC bank.  ICICI Bank deployed software robotics in over 200 business processes across various functions.  Axis Bank launched an AI & NLP (Natural Language Processing) enabled app, Conversational Banking, helping consumers with financial and non-financial transactions.  Bank ABC's AI-powered digital employee using the technology called 'Soul Machines' offering human experience.

AI is the future of Banking as it brings the power of advanced Data Analytics.  Based on past interactions, AI develops a better understanding of customer  behavior. This enables banks to customize financial products and services by adding personalized features and intuitive interactions to deliver better customer engagement.  Chatbots seems to be the primary AI use-case wih Indian Banks, with many   banks investing in conversational apps. SBI uses AI-powered smart cameras that captures facial expressions of customers to offer real-time feedback. As per ICICI Bank, more than  200 software robots are performing 10 lakh plus Banking transactions every day.

With its power to predict future scenarios by analyzing past behaviors, AI helps Banks predict future trends. This helps banks to identify fraud, detect anti-money laundering pattern and make customer recommendations. Cognitive process automation enables automation of a variety of information-intensive Banking services like claims management. This secures ROI, reduces costs and ensures accurate and quick processing of services. Chatbots identify the context and emotions in the text chat and respond to it in the most appropriate way. These cognitive machines enable banks to save not only time and improve efficiency, but  also help banks to save money.

Cognitive systems that think and respond, provides optimal solutions based on available data in real-time - future of Banking systems.






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