AI in BFSI
Technology advancement is having a
positive impact on the BFSI sector, with Artificial Intelligence at the forefront in the
revolution. AI is playing a huge role in redefining banking operations, and the banking
industry around the world is investing huge amounts in this technology. Data Analytics,
Machine Learning and Artificial Intelligence are creating a platform which has powerful
advanced statistical analysis features for all types of data. This is providing a solution
for all the problems associated with the traditional time series data, which are the
foundation of meaningful trading and investment decisions.
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Banks using data to understand consumer behavior is not a new
occurrence, but this time, it is being done with the help of technology. With more
availability, low cost, and easy to use features, AI solutions have made data-driven
decision-making more feasible and valuable. In customer support, banks are now offering
AI-enabled chatbots and virtual assistants, which are worth US ($) 847.4 Mn and is expected
to reach US($) 2,264.3 Mn. AI-enabled CRM activities like automated financial advisors are
monitoring events and stock and bond price trends, and are analyzing them against the
financial requirements of customers to make the right decisions. AI-enabled CRM activities
are capturing 11.4% market share in 2018 in the AI in BFSI market and this share is expected
to rise to 12.88% by 2023.
Overall, data analytics, AI, and ML have a lot to offer to banks with respect to services
such as customer segmentation, cyber security, risk assessment, payment gateways, product
recommendation, and efficient and intelligent search engines. Currently, the most impactful
application of artificial intelligence in bank is conversational assistants or chatbots that
can engage customers 24/7 and give quick responses. Customers are increasingly getting
comfortable with chatbots handling many things including private conversations regarding
bank transactions. The Bank of America has introduced Erica as a virtual
assistant, while Kotak bank has Keya for giving smart and quick answers to banking queries
round the clock.
In addition to customer service inquiries and conversations about individual transactions,
banks have found good results in making their customers aware of additional services and
offerings at lesser time with the help of chatbots. For example, chatbots have been helpful
in making business customers aware of merchant applications and mobile applications for more
successful transitions and enhancing customer experiences.
AI-based matching and behavioral analysis of customers can enable banks to make the right
offer and suggestion to the right customer and respond to finance-related immediate customer
service needs. AI is changing the way banking operations are being carried out in various
banks in unique ways.