Most of the IT decision makers are of the opinion that AI is badly needed in BFSI segment and will lead to drastic improvement in operational efficiency and will fundamentally transform the core financial processes.
Conversational AI technologies are the way to go as they facilitate two-way interactions and allow banks to establish long term relationships with customers by providing seamless experience covering multiple banking aspects throughout the year.
With time the Conversational AI technologies will slowly reach a level towards an automated response system to contextualize and personalize conversations with their customer on-demand and in real time.
Major sub-segments to influence AI implementation in BFSI sector:
- Chatbots or Voicebots: This AI technology is programmed to converse with the customers on a 24x7 basis. It is programmed to self-learn and conduct intelligent conversations with humans over chat or audio.
- Robo Advisors: This AI technology uses different platforms to offer investment advice to customers covering multiple issues with zero human intervention.
- Emotion AI: It is a branch of AI which helps in enabling machines to detect human emotions using advanced facial and voice recognition technologies. It further makes use of this information to provide advice to the customers depending on their mood and state of mind.
- Data Analysis: The AI systems record multiple data and use them to evaluate problems related to its own applications as well as to solve problems related to different areas of banking.
AI will enhance trustful conversations
One of the primary aspects associated with AI in banking is its ability to supercharge its customer using multiple touch points. The coming years will witness deployment of AI oriented Chatbots and voicebots which can interact with multiple customers using the most advanced conversation options. Voicebots are expected to be top priority with 52% banks surveyed planning for AI deployments in the next one year followed by chatbots with 48%.
Some of the major Indian banks to implement these services include:
- State bank of India: SBI’s inTouch chatbot is using AI technology to address various customer queries powered by IBM Watson. The chatbot provides information on various banking products and services like loans, term deposit and many more.
- HDFC Bank: The bank has introduced its own conversational banking chatbot called EVA exclusively for its customers. This AI powered virtual assistant chatbot designed by Bangalore-based AI start-up Senseforth is capable of answering millions of customer queries covering multiple channels.
- ICICI bank: The bank’s in-house build iPal chatbot has the capability to serve multiple customers to offer assignment on micro transactions like bill payment and fund transfer. Within a short span of time the chatbot has handled more than 6 million queries on its portal and mobile app iMobile providing information on multiple aspects with close to 90 percent accuracy. The bank claims that it is the only AI led Indian chatbot service available on the bank’s website as well as mobile application.
The main objective of most AI technology adopted by banks in India is to offer a more enhanced, proactive and personal customer experience at a lower cost. As the banks get more comfortable with these newly deployed AI systems, they will start using them more and more for back-end business processes which will help to reduce human error and improve turn-around-time where manual processes are required.
To know more, download our latest research paper titled “AI for BFSI”: Artificial Intelligence for Banking, Financial Services & Insurance Sector