CustomerXPs CEO Rivi Varghese on deploying AI as a core strategic capability to overcome the 'yin-yang' predicament.
AI is the current buzzword and we have come across copious examples in retail, manufacturing, etc. Do banks adopt AI like others industries or are they different from other industries, with respect to how AI can be used?
Banking is a world of opposites. While on the one hand, we have the glamorous retailer outlook when banks engage with customers on the cross-sell side on the other hand banking is heavily regulated and audited, which means the rules of retail don’t work here. For example, unlike a retailer a bank can’t be lending, selling or stopping transactions merely by probabilities or algorithms – the regulators want a precise black or white answer for most of these actions. This is what we call as the Yin-Yang conundrum of AI in banking.
But there’s not much clear articulation of the tangible and significant benefits of AI in banking. Could you demystify AI for banks, from the practitioner’s perspective?
This Yin-Yang conundrum also restricts AI to the peripheries of banking (e.g. chat bots, query assist, etc.) – thus just scratching the surface of the power of AI. There are two other core reasons that.... Read More